1.Compared to a pollution tax, a uniform-abatement policy is
(more/less) efficient because it does not
exploit differences in across firms.
2. The “command” part of a command-and-control pollution policy specifies
a for each firm.
3. A command-and-control policy is likely to be inefficient because it requires firms to use
.
4. A pollution tax encourages firms to develop more efficient abatement technology
. (True/False)
5. Arrows up or down: A switch from a pollution-tax policy to a uniform-reduction policy will shift the supply curve of the polluting product and the
equilibrium price.
6. The lesson from the Dear Abby column is that sometimes
is more efficient
than , and sometimes the reverse is true.
7. Arrange the following CO2 abatement techniques for international shipping in order of increasing MAC (marginal abatement cost): reduce speed, switch to gas-powered engines, propeller maintenance, tap windpower with sails and wings. (Related to Application 3 on page 691.)