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Question 1
E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
74% (03:21) correct
26%
(03:15) wrong
based on 72
sessions
History
Date
Time
Result
Not Attempted Yet
Question 2
A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
89% (00:55) correct 11%
(01:05) wrong
based on 82
sessions
History
Date
Time
Result
Not Attempted Yet
Question 3
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
45%
(medium)
Question Stats:
68% (01:30) correct 32%
(01:31) wrong
based on 78
sessions
History
Date
Time
Result
Not Attempted Yet
States do vary substantially in the pollution abatement expenses (PAE) they impose on the chemical industry and in their ability to attract that industry's capital. This variation is not accounted for by frostbelt/sunbelt differences; variance within each region rendered differences between regions insignificant. Variation in ability to attract new capital shares is, however, related to private PAE; interstate variance in pollution abatement expense explains more than half the 1977 1981 change in states' ability to attract a share of the chemical industry's new capital.
In addition to the straightforward statistical findings, these data suggest that, for the chemical industry, the relationship between resource allocation and environmental costs may not be linear. While states that impose high pollution abatement costs tend to compete unsuccessfully for new capital, those who impose the lowest marginal costs are not necessarily the most successful in increasing their share of new capital. Rather, there appears to be a PAE threshold; when a state exceeds it, the state loses capital to states that remain below it. In all likelihood states with limited capacity to socialize the costs of environmental regulation must exceed that marginal-cost threshold to meet federally imposed environmental standards while states with greater fiscal capacity can meet such standards without exceeding the threshold and compete for developmental resources on the basis of other incentives.
Firmer conclusions are limited by some implicit caveats and design limitations. First, our findings tell us little about the relationship between overall quality of environmental protection and the allocation of CAP (chemical and allied producers') resources. We do not, therefore, know whether the adequacy of regulation is affected by economic development. Second, our conclusions are limited to our sample and time frame. Third, we could not, in this exploratory study, control the possibility that our statistical relationships are the spurious artifact of other, unexamined, effects. Finally, we have not controlled for the possibility that a large relative pollution abatement expense in 1977 may be accounted for partially by an exodus of resources before 1977 that left relatively fixed expenses to be balanced against a shrinking pool of shipments.
In addition to the straightforward statistical findings, these data suggest that, for the chemical industry, the relationship between resource allocation and environmental costs may not be linear. While states that impose high pollution abatement costs tend to compete unsuccessfully for new capital, those who impose the lowest marginal costs are not necessarily the most successful in increasing their share of new capital. Rather, there appears to be a PAE threshold; when a state exceeds it, the state loses capital to states that remain below it. In all likelihood states with limited capacity to socialize the costs of environmental regulation must exceed that marginal-cost threshold to meet federally imposed environmental standards while states with greater fiscal capacity can meet such standards without exceeding the threshold and compete for developmental resources on the basis of other incentives.
Firmer conclusions are limited by some implicit caveats and design limitations. First, our findings tell us little about the relationship between overall quality of environmental protection and the allocation of CAP (chemical and allied producers') resources. We do not, therefore, know whether the adequacy of regulation is affected by economic development. Second, our conclusions are limited to our sample and time frame. Third, we could not, in this exploratory study, control the possibility that our statistical relationships are the spurious artifact of other, unexamined, effects. Finally, we have not controlled for the possibility that a large relative pollution abatement expense in 1977 may be accounted for partially by an exodus of resources before 1977 that left relatively fixed expenses to be balanced against a shrinking pool of shipments.
1. According to the passage, what is the relationship between PAE costs and attracting new capital?
A. There is no relationship between regulation costs and attracting business.
B. States with the lowest business costs always get the most business.
C. Higher costs attract more business.
D. High regulation levels encourage greater competitiveness in business.
E. Once above a certain threshold, there high regulation causes a negative impact on business.
A. There is no relationship between regulation costs and attracting business.
B. States with the lowest business costs always get the most business.
C. Higher costs attract more business.
D. High regulation levels encourage greater competitiveness in business.
E. Once above a certain threshold, there high regulation causes a negative impact on business.
2. States with greater fiscal capacity:
A. can meet federal environmental standards and compete for resources on the basis of other incentives
B. must exceed marginal-cost threshold
C. can control quality of environmental protection
D. can adjust pollution abatement costs to increase share of new capital
E. can balance quality and cost of environmental protection
A. can meet federal environmental standards and compete for resources on the basis of other incentives
B. must exceed marginal-cost threshold
C. can control quality of environmental protection
D. can adjust pollution abatement costs to increase share of new capital
E. can balance quality and cost of environmental protection
3. Which of the following is not a statistical finding summarized in this passage?
A. The ability of states to attract chemical industry capital varies greatly.
B. Variance in ability to attract chemical industry capital is not explained by frostbelt/sunbelt differences.
C. Pollution abatement expenses imposed by states on the chemical industry vary greatly.
D. Quality of environmental protection and attraction of new capital correlate strongly.
E. Variance within regions renders differences between regions insignificant.
A. The ability of states to attract chemical industry capital varies greatly.
B. Variance in ability to attract chemical industry capital is not explained by frostbelt/sunbelt differences.
C. Pollution abatement expenses imposed by states on the chemical industry vary greatly.
D. Quality of environmental protection and attraction of new capital correlate strongly.
E. Variance within regions renders differences between regions insignificant.
RC Butler 2022 - Practice Two RC Passages Everyday.
Passage # 232 Date: 09-Jun-2022
This question is a part of RC Butler 2022. Click here for Details
Passage # 232 Date: 09-Jun-2022
This question is a part of RC Butler 2022. Click here for Details
23 Feb 2024, 04:09
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The passage objectively analyzes the relationship between pollution abatement expenses (PAE) and the chemical industry's capital attraction, avoiding emotional language or opinions. It presents both positive and negative aspects of high PAE, without advocating for a specific viewpoint.
1. According to the passage, what is the relationship between PAE costs and attracting new capital?
E. Once above a certain threshold, high regulation causes a negative impact on business.
This answer is supported by the passage's statement: "there appears to be a PAE threshold; when a state exceeds it, the state loses capital to states that remain below it."
Other answer choices are incorrect:
A: The passage specifically shows a relationship between PAE and capital attraction.
B: Not always true; the passage mentions some low-PAE states are not the most successful.
C: Higher costs typically deter business, not attract it.
D: High regulation levels can create challenges for competitiveness, not encourage it.
2. States with greater fiscal capacity:
A. can meet federal environmental standards and compete for resources on the basis of other incentives
The passage states: "...states with greater fiscal capacity can meet such standards without exceeding the threshold and compete for developmental resources on the basis of other incentives."
Other answer choices are incorrect:
B: Not necessarily; they can avoid exceeding the threshold but might not have to.
C: The passage doesn't address their control over protection quality.
D: Not directly mentioned; PAE itself is not manipulated.
E: Balancing might be possible, but the passage doesn't explicitly state this.
3. Which of the following is not a statistical finding summarized in this passage?
D. Quality of environmental protection and attraction of new capital correlate strongly.
The passage doesn't analyze the direct correlation between environmental quality and capital attraction. It focuses on PAE costs, not overall protection quality.
Other answer choices are all mentioned as findings:
A: The passage states the varying ability to attract capital.
B: This is explicitly mentioned as not a significant factor.
C: PAE expenses are stated to vary considerably.
E: The passage highlights the insignificance of regional differences based on within-region variation.
1. According to the passage, what is the relationship between PAE costs and attracting new capital?
E. Once above a certain threshold, high regulation causes a negative impact on business.
This answer is supported by the passage's statement: "there appears to be a PAE threshold; when a state exceeds it, the state loses capital to states that remain below it."
Other answer choices are incorrect:
A: The passage specifically shows a relationship between PAE and capital attraction.
B: Not always true; the passage mentions some low-PAE states are not the most successful.
C: Higher costs typically deter business, not attract it.
D: High regulation levels can create challenges for competitiveness, not encourage it.
2. States with greater fiscal capacity:
A. can meet federal environmental standards and compete for resources on the basis of other incentives
The passage states: "...states with greater fiscal capacity can meet such standards without exceeding the threshold and compete for developmental resources on the basis of other incentives."
Other answer choices are incorrect:
B: Not necessarily; they can avoid exceeding the threshold but might not have to.
C: The passage doesn't address their control over protection quality.
D: Not directly mentioned; PAE itself is not manipulated.
E: Balancing might be possible, but the passage doesn't explicitly state this.
3. Which of the following is not a statistical finding summarized in this passage?
D. Quality of environmental protection and attraction of new capital correlate strongly.
The passage doesn't analyze the direct correlation between environmental quality and capital attraction. It focuses on PAE costs, not overall protection quality.
Other answer choices are all mentioned as findings:
A: The passage states the varying ability to attract capital.
B: This is explicitly mentioned as not a significant factor.
C: PAE expenses are stated to vary considerably.
E: The passage highlights the insignificance of regional differences based on within-region variation.
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