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1. An analysis of the impacts of some public policy considers how distributed among different
groups in society
a. distributional; costs
b. economic efficiency; net benefits
c. distributional; net benefits
d. economic efficiency; costs
2. If a large proportion of the population left some region, the marginal damages curve would
and the socially-efficient level of pollution would.
a. shift upwards; decrease shift downwards;
b. increase shift upwards; increase
c. shift downwards; decrease
d. not be affected; not change
3. As part of a research team, your job is to evaluate a proposal to clean up a hazardous waste
site close to a popular beach and residential area. You will estimate the benefit of cleaning up the
site as part of a benefit-cost analysis. Which of the following valuation methods could be
appropriate to use for this estimate?
a. preventive spending hedonic
b. contingent valuation
c. travel cost
d. any of the choices given would be appropriate
4. The Institute of Public & Environmental Affairs (IPE) is a non-profit environmental research
organization registered and based in Beijing, China. According to its founder, Ma Jung: "We
have the laws and regulations, but enforcement remains very weak. Environmental agencies in
China are hamstrung by local officials who put economic growth ahead of environmental
protection; even the courts are beholden to local officials, and they are not open to environmental
litigation. So we can't go that way." He campaigned for shoppers to "pay attention to companies'
environmental performance, and use their buying power to change it." Mr. Jung believes that it is
better to rely on to prevent environmental degradation in China than to use the legal system.
a. moral suasion
b. informal community pressure
c. formal community pressure
d.reducing transaction costs
e. private property rights

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