Canada is Banning Single-Use Plastics, Including Grocery Bags and Straws

EconEye Admin

4 years ago

Canada is banning the manufacture and import of single-use plastics by the end of the year. The ban includes items like checkout bags, cutlery, and straws. Single-use plastics make up most of the plastic waste found on Canadian shorelines.—cnbc.com

Answer the following questions to check your understanding of the story.

Why is Canada banning single-use plastics?

Canada is banning single-use plastics because ______________.

a) a total ban is the only way to decrease pollution on Canadian shorelines

b) when people use them, they don’t consider the external cost of pollution that they create and overuse them

c) the convenience of using them creates an external benefit, resulting in overuse

d) there is a shortage of the raw materials from which they are made

Wrong! - Does the use of single-use plastics create an external cost? Does the use of single-use plastics create an external benefit? What is the problem that Canada is trying to solve by this ban?

Good Job! - The use of single-use plastics creates an external cost—the cost of pollution. When people don’t consider the external cost of pollution that they create, they overuse single-use plastics.

Could this total ban achieve an efficient outcome?

This total ban ______________ achieve an efficient outcome if ______________ .

a) would not; marginal social benefit equals marginal social cost at the smallest quantity

b) would not; marginal social cost exceeds marginal social benefit at the smallest quantity

c) would; marginal social benefit exceeds marginal social cost at the smallest quantity

d) would; marginal social cost exceeds marginal social benefit at the smallest quantity

Wrong! - As more single-use plastic is produced and used, how do marginal social cost and marginal social benefit change? What is the relationship between marginal social cost and marginal social benefit when the outcome is efficient?

Correct! - As more single-use plastic is produced and used, marginal social cost increases and marginal social benefit decreases. If marginal social cost exceeds marginal social benefit at the smallest quantity, then the gap between marginal social cost and marginal social benefit increases as the quantity increases. So the efficient outcome would occur with a total ban.

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