1. Economics 415 clicker questions
Chapter 6 – Question Set #2

2. Michael Porter, in the Porter hypothesis argues that stricter environmental policy will
increase costs and decrease efficiency in production.
decrease costs and improve efficiency in production.
place the United States at a comparative disadvantage in the production of goods and services relative to its international trading partners.
allow the United States to overcome the constraints placed on production by limited waste disposal sites.
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3. As per capita income increases in an economy, since environmental quality is a normal good
the demand for environmental quality will fall.
there will be no change in the demand for environmental quality.
the demand for environmental quality will rise.
the demand for pollution generating goods and services will increase.
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4. may not lead to a rise in environmental quality.
If the impacts of pollution are cumulative, then the rise in income in an economy
may not lead to a rise in environmental quality.
may lead to a rise in pollution .
may lead to a rise in environmental quality.
all of the above.
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5. high income economies; fall; rise. low income economies; fall; rise.
The Environmental Kuznets Curve (EKC) argues that _____________ have little impact on the environment but as an economy continues to grow the quality of the environment will __________ and then ___________.
high income economies; fall; rise.
low income economies; fall; rise.
low income economies; rise; fall.
high income economies; rise; fall.
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