Question

Decentralized policies

a.require a strong legal system

b.require federal knowledge of costs and benefits

c.allow individuals involved to work things out themselves

d.devolve power to the state level

Decentralized policies have an advantage over other policies in that

a.parties involved have a disincentive to seek solutions

b.those involved likely have the best knowledge of the damages and costs thus may be best able to find an efficient solution

c.both of the above

d.neither of the above

The real purpose behind liability laws for environmental damages is

a.to punish polluters

b.to compensate victims

c.to get potential polluters to consider potential liability, thus internalizing what would otherwise be external effects

d.to make individuals work conflicts out through arbitration

Under liability laws, a polluter has an incentive to reduce emissions as long as

a.the marginal damage caused by those emissions is greater than the cost of abatement

b.the marginal damage caused by those emissions is less than the cost of abatement

c.they expect they won't get caught polluting

d.they are only held liable for damage to public resources

Transaction costs are

a.costs of reaching and enforcing agreements

b.the costs of transactions that are incorporated into the price of goods

c.benefits of transactions that are not realized because of constraints on trade

d.none of the above

Answer 1

Ques 1 ) Decentralized policies

d.devolve power to the state level

Other points are not totally correct hence this is the correct solution.

Ques 2 ) Decentralized policies have an advantage over other policies in that

b.those involved likely have the best knowledge of the damages and costs thus may be best able to find an efficient solution

Other parts are incorrect.

Ques 3 The real purpose behind liability laws for environmental damages is

c.to get potential polluters to consider potential liability, thus internalizing what would otherwise be external effects

Ques 4 Under liability laws, a polluter has an incentive to reduce emissions as long as

a.the marginal damage caused by those emissions is greater than the cost of abatement

Ques 5 ) Transaction costs are

a.costs of reaching and enforcing agreements