G202 Exam 3 extra credit questions

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Consider a good that generates external damages. A competitive market that is left un-regulated tends to
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Consider a good that generates external damages. A competitive market that is left un-regulated tends to
charge a lower price than the price that would result in maximized social welfare.
Which of the following is an incorrect statement regarding tradable pollution permits?
Environmental groups can not affect the overall level of pollution under a system of tradable pollution permits.
Steve's paper factory is polluting a local river and the following information is provided on its production quantity, demand, and cost conditions.
Compare Steve's un-regulated profit maximizing production quantity (Qf) to his socially efficient production quantity (Qe) that would result from an optimally set pollution tax.
Steve's profit maximizing quantity is Qf = 4, while his socially efficient quantity is Qe = 2.
Steve's paper factory is polluting a local river and the following information is provided on its production quantity, profit, demand, and cost conditions.
If the government gives Steve 2 permits for free, and the permits trade at a market price of $50 each, what will Steve's profit be equal to after he optimally trades permits?
$110
Which of the following is not a reason for employing strategic sustainability efforts?
To further differentiate your business model from the demands of green NGOs.
Considering only the action of private politics, which of the following firm-stakeholders is not a possible leverage point for an NGO to use?
Public Policy Makers.
Which of the following is an example of private politics?
Rainforest Action Network threatening to boycott Home Depot stores if the company does not source more FSC-certified wood products to offer to its customers.
In regards to private politics, the stage within the normal political issue that is replaced by a NGO making direct demands on a firm is the
Legislative stage
Which of the following is not one of the causes of the rise in NGO campaigns?
Public trust in corporations is increasing.
Within firm-NGO disputes, the resolution of the conflict can range between the firm doing nothing at one extreme and the firm doing everything that the NGO has asked at the other extreme. Where the resolution of a particular campaign occurs within this range of outcomes is influenced by
how much leverage the NGO has over the firm and how reasonable the NGO's demands are.
In regards to the butter-flavored micro-wave popcorn case presented in class, it is clear that when comparing the profit maximizing equilibrium wage and quantity of labor to the socially efficient equilibrium wage and quantity of labor, that the following is true:Wf < We and Lf > Le.Given that information about the effectiveness of herbal drugs sold in TV infomercials is often overstated (meaning the drugs are made to seem more effective than they really are), it is clear that relative to the efficient equilibrium, the market is demandingtoo many drugs, because some drugs are sold that are valued less than costs.Which of the following statements is incorrect regarding public and private regulation?Public regulation is paid for by only those individuals that benefit from the regulation.It is efficient to regulate an industry untilthe marginal costs of regulation equals the marginal benefits.During this Christmas season, as millions of houses and trees are being decorated by millions of strands of electric Christmas lights, consumers are secure in using the electrical device becauseA private electrical regulation firm has inspected, tested, and UL certified the safety of the electrical device before it entered the market.