Type:
Test Bank
Resource:
Environmental Economics
Edition:
8th Edition
Author(s):
Barry C. Field Martha K. Field
Chapter 01 - What Is Environmental Economics?
Chapter 01 What Is Environmental Economics?
Multiple Choice Questions 1. A(n) ________ in the economic world is something that leads people to channel their production and consumption efforts in a specific direction. A. moral obligation B. economic incentive C. property right D. ethical motive Difficulty: Easy.
2. Any economic system will produce destructive environmental impacts if the ________ within the system are not structured to avoid them. A. ethics B. prices C. property rights D. incentives Difficulty: Easy.
3. An economy that has the ability to allow the level of people's well-being to rise or at least remain constant over time is ________. A. sustainable B. equitable C. self-perpetuating D. efficient Difficulty: Easy
4. People make the decision to pollute or not based on ________. A. incentives B. social institutions C. economic institutions D. all of the above Difficulty: Easy
1-1 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - What Is Environmental Economics?
5. _______ organizations are more likely to respond to incentives that encourage pollution. A. For profit B. Not for profit C. Government D. All organizations are equally likely polluters Difficulty: Easy
6. Positive economics is the study of _____________. A. what will be B. what is C. beneficial economic outcomes D. economic outcomes that are most likely Difficulty: Easy.
7. ___________ would include a study of what the economic penalties for water pollution should be. A. Normative economics B. Legal economics C. Judicial economics D. Market economics Difficulty: Easy.
8. _______ organizations are more likely to respond to incentives that discourage pollution. A. For profit B. Not for profit C. Government D. All of the above Difficulty: Easy.
1-2 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - What Is Environmental Economics?
9. The economic approach to issues of the environment can be directly contrasted with the ________, while the former relies on analytic models and incentives to explain environmental quality the latter interprets environmental degradation as a result of _______. A. analytic approach; negative externality B. direct approach; indirect policy C. moral approach; unethical behavior D. positive approach; opportunity cost Difficulty: Moderate
10. Pollution control costs today probably equate to A. 1% to 2% of US GDP. B. 20-25% of the US GDP. C. the state of Iowa’s domestic production.. D. the amount spent on US healthcare.. Difficulty: Easy
11. The technical name for the PAYT (pay as you throw) waste disposal program implemented in southern Maine communities, that charged a set price for each bag of trash is ____________. A. municipal incentive B. ineffective policy C. flat fee D. unit pricing Difficulty: Easy.
12. Command and control policies refer to A. communist government approaches to pollution control. B. regulations and laws that directly/indirectly specify pollution control technology. C. tax and spend pollution policy. D. regulation of pollution by the US military. Difficulty: Easy
1-3 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - What Is Environmental Economics?
13. Examples of incentive based programs include all but ______________. A. emissions charges B. emissions taxes C. command and control programs D. market-based trading programs Difficulty: Moderate
14. Perverse incentives__________________. A. are financial incentives aimed at minors B. are incentives that only affect those who do not pollute C. are flat fee incentives that disproportionately affect the poor D. work against the overall objectives of a policy Difficulty: Easy.
15. Which of the following environmental policy issues would be considered a macroeconomic concern? A. Potential tradeoffs between environmental protection and GDP growth B. Wage rates in envirotech industries C. Federal policy that regulates the oil industry D. Federal policy that regulates the energy industry Difficulty: Moderate.
16. Environmental policies have triggered all of the following macroeconomic concerns except: A. stricter environmental policies retard economic growth B. stricter environmental policies are associated with socialism C. stricter environmental policies reduce employment D. higher economic growth rates are associated with environmental degradation Difficulty: Moderate
17. While the private sector may judge the effectiveness of environmental policy through the analysis of its effect on their_____________, the public sector judges the impact of environmental policy through __________________ . A. employees; elections B. benefit-cost analysis; non-profit statement C. advertising; congress D. profit-and-loss statement; benefit-cost analysis Difficulty: Moderate
1-4 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - What Is Environmental Economics?
18. Benefit-cost studies are often associated with political struggles with environmental groups typically emphasizing A. democratic principles. B. the benefits of environmental programs and policies. C. the reduced costs associated with environmental programs and policies. D. the electability of politicians who are pro-environment. Difficulty: Moderate
19. The benefits of environmental improvement are typically_____________. A. easy to evaluate, but costs are not B. accrued to individuals and not society C. nonmarket in nature D. openly traded in the market Difficulty: Moderate
20. Globalization is a term used to refer to the changes taking place in the world economy, including all of the following except: A. trade among nations. B. multinational firms and conglomerates. C. privatization of economic institutions. D. all of the above. Difficulty: Easy
21. Many environmental issues are local or regional; however, some are international or global in scope. An example of a global environmental issue is ________________. A. destruction of the stratospheric zone B. greenhouse gases C. global warming D. all of the above Difficulty: Easy
22. The fact that environmental policy is subject to politics means_____________. A. efficiency issues must be ignored B. economists must work to increase voter turnout C. economists must deal with distribution questions D. environmental economics has little influence on which policy is implemented Difficulty: Moderate
1-5 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - What Is Environmental Economics?
23. One of the most persuasive arguments that the profit motive is not solely the cause of pollution is _____________. A. the success of not-for-profit envirotech companies B. the environmental destruction experienced in countries with Communist regimes C. the stock value of solar energy firms D. the popularity of environmentally friendly household cleaners Difficulty: Moderate
24. Environmental economics is the application of the principles of economics to the study of the use of environmental resources. As such, it draws mostly from the field of ____________. A. microeconomics B. environmental science C. operations research and supply chain management D. macroeconomics Difficulty: Easy
25. Economics is the study of how and why individuals and groups make decisions about the use and distribution of _______________. A. money B. time C. human and non-human resources D. capital Difficulty: Easy
26. All of the following are difficulties with relying on moral reawakening to combat pollution control problems, except: A. moral rebuilding takes a long time. B. the separation of church and state prevents moral influence in policy. C. pollution problems compete for resources with other moral issues (poverty, housing, etc.). D. people do not pollute because they are morally underdeveloped. Difficulty: Moderate
27. In 2005, US expenditures to control pollution cost approximately $130 billion, causing former director of the EPA, William Reilly to state A. “at this level of expenditure, there’s a very large obligation to get it right.” B. “the US can no longer afford pollution control.” C. “private firms that pollute must reimburse the public for these expenses.” D. “the mission of the EPA is to reduce the cost of pollution control.” 1-6 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - What Is Environmental Economics?
Difficulty: Easy
28. Microeconomic topics and studies would include A. changes in GDP. B. rates of inflation. C. wage rates in the energy industry. D. the unemployment rate. Difficulty: Easy
29. A cost effective policy regarding CO2 emissions would ensure A. the highest benefit cost ratio. B. the largest emission reduction for the resources spent. C. the greatest amount of utility per capita. D. that each pollution source reduced their emissions by the same percentage amount. Difficulty: Moderate
30. Pollution control policies are of special importance to underdeveloped countries. Many have embraced ___________ policy approaches along with heavy reliance on ____________. A. market based; US regulatory leadership B. international trade; renewable energy sources C. international; the legal system D. command and control; voluntary pollution control Difficulty: Moderate
31. Emissions charges are A. also called emissions taxes B. a form of command-and-control policy C. the same as fines for pollution D. all the above
32. The inverted-U model, comparing GDP per capita to environmental degradation, shows greatest environmental degradation occurring with A. pre-industrial economies B. industrial economies C. post-industrial economies D. none of the above
1-7 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 01 - What Is Environmental Economics?
33. The influence of economists on environmental issues over the last decade has A. increased B. decreased C. not changed D. cannot be determined
34. Economics is a study of A. people’s behavior B. resource scarcity C. decision making D. all the above
35. Economists believe people pollute because A. people don’t care B. people have too many options for their time C. governments are filled with corruption D. pollution is the cheapest waste disposal method of waste products
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Chapter 02 – The Economy and the Environment
Chapter 02 The Economy and the Environment Multiple Choice Questions 1. The trade-off that exists between harvesting as much as possible of a renewable resource today versus waiting for the future exemplifies the ________ of many natural resource management issues. A. sustainability B. intertemporal dimension C. short-run impact D. efficiency Difficulty: Easy
2. When a new production technology is invented that results in production of smaller amounts of residuals per unit of output produced, this is called reducing the ________. A. damages from production B. intensity of pollution C. residuals from production D. residuals intensity of production Difficulty: Easy
3. The residuals from production can be reduced by ________. A. shifting the composition of output towards low-residual items B. preventing pollution by reducing the energy inputs required to produce each unit of output C. reducing the residuals intensity of production D. all of the choices are correct Difficulty: Moderate
2-1 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 02 – The Economy and the Environment
4. An accidental oil spill is an example of a(n) ________ emission while municipal treated wastewater is an example of a(n) ________ emission. A. continuous; episodic B. global; local C. point source; nonpoint source D. episodic; continuous Difficulty: Easy
5. The study of nature in its role as a provider of raw materials is called ________. A. natural resource economics B. natural economics C. environmental economics D. all of the choices are correct Difficulty: Easy
6. ________ economics is an example of a subdivision of natural resource economics. A. Agricultural B. Energy C. Mineral D. All of the choices are correct Difficulty: Moderate
7. Nonrenewable resources are those for which there is no process of ________. A. substitution B. replenishment C. sustainability D. assimilation Difficulty: Easy
8. Both renewable and nonrenewable resources have ________ trade-offs. A. objectivity B. intertemporal C. relevance D. stock Difficulty: Easy
2-2 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 02 – The Economy and the Environment
9. One of the theoretical ideas of natural resource economics is that the earth’s ___________ is a natural resource under threat of depletion. A. sun B. population C. sustainability D. assimilative capacity Difficulty: Easy
10. Although the dividing line between the two is blurring generally speaking, _______ is concerned with resource extraction and __________ is concerned with environmental degradation. A. production economics; consumption economics B. environmental economics; natural resource economics C. natural resource economics; environmental economics D. consumption economics; production economics Difficulty: Easy
11. In the figure above, (a) represents ____________. A. the extraction of resources from nature B. natural resource economics C. the consumption of goods and services D. the role of government Difficulty: Easy
12. In the long run, residuals discharged by producers plus residuals discharged by consumers must be equal to the materials and energy extracted from the natural environment. The fundamental balance equation states that this is also equal to the _________________. A. output of goods and services minus consumer recyclables B. output of goods and services plus production residuals minus recyclables C. output of residuals minus consumer recyclables plus producer surplus D. benefits plus costs Difficulty: Moderate
2-3 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 02 – The Economy and the Environment
13. According to the fundamental balance equation, how can M, raw materials and energy extracted from the environment, be reduced? A. Reduce G, the amount of goods produced B. Reduce Rp, residuals from producers C. Increase (Rrp + Rrc), recyclables from both consumers and producers D. All of the above are a method of reducing M Difficulty: Moderate
14. In the figure above, the curve in panel (a) represents ____________. A. a production possibilities curve B. a trade-off between the production of market goods and environmental quality C. combinations of outcomes given a fixed endowment and technology D. all of the above Difficulty: Easy
15. In the figure above, panel (b) represents __________________. A. intertemporal linkage between production decisions today and production ability tomorrow B. a change in technology allowing for increased production C. the inevitable consequences of air pollution D. the inevitable consequences of improved air quality Difficulty: Easy
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Chapter 02 – The Economy and the Environment
16. ___________ refers to the quantity of pollutants in the environment. A. Source B. Effluent C. (Rrp + Rrc) D. Ambient quality Difficulty: Easy
17. _____________ is the common term for negative impacts produced by environmental pollution on people in the form of health effects and visual degradation as well as negative impacts on the ecosystem. A. Disruption B. Damages C. Effluent D. Emissions Difficulty: Easy
18. Although often used interchangeably, _______ broadly describes residuals that are placed in the environment and __________ is typically used to describe residuals placed in water. A. pollutant; effluent B. effluent; emissions C. emissions; effluent D. pollutant; emission Difficulty: Easy
19. ____________ is an environmental media. A. Water B. Land C. Air D. all of the above Difficulty: Easy
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Chapter 02 – The Economy and the Environment
20. For a given amount of residuals, when we reduce the amount that is emitted into one environmental media, ___________________. A. the ambient quality of all surrounding media increases B. the amounts going into other media must increase C. production of goods and services must decrease D. it is impossible to specifically state what happens to other environmental media Difficulty: Moderate
21. When emissions are mixed and not flowing from a single source, the problem of enforcement to maintain ambient quality is ______________. A. impossible B. straightforward C. much more complex D. all of the above Difficulty: Easy
22. A living resource can be non-renewable. A. false; all living resources are renewable B. true; if the living resource is rare C. true; if the rate of harvest exceeds the growth rate of the resource’s stock D. false; only non-living resources are non-renewable Difficulty: Easy
23. Continued extraction of a non-renewable resource can be sustainable over time if managed properly. A. False; all non-renewable resources have a 5 year limit for extraction. B. True; by definition non-renewable resources will never deplete. C. True; with continued increases in technology non-renewable resources can last indefinitely. D. False; non-renewable resources will eventually deplete. Difficulty: Easy
24. A classic example of a non-cumulative pollutant is _____________. A. loud music B. acid rain C. methane gas D. mercury Difficulty: Easy
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Chapter 02 – The Economy and the Environment
25. Estimating damages from cumulative pollutants is complicated because A. there is a lack of cause and effect associated with the current emissions and total damages. B. the intertemporal dimension makes it more difficult to focus on the damages associated with today’s emissions. C. people typically discount the effects of future damage. D. all of the above. Difficulty: Moderate
26. Point-source pollutants A. are known for causing greater environmental damages. B. typically have international damage components C. have a well-defined point of discharge. D. are typically more difficult to trace to the source of pollution. Difficulty: Easy
27. It is more difficult to develop and administer control policies for _________ than it is for _____________. A. local pollutants; regional and global pollutants B. air pollution; water pollution C. point source pollutants; non-point source pollutants D. non-point source pollutants; point source pollutants Difficulty: Easy
28. An example of environmental damage that is not related to emissions is ___________. A. strip mining B. logging C. the conversion of land to housing D. all of the above Difficulty: Easy
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Chapter 02 – The Economy and the Environment
29. The policy challenge for continuous emissions is to manage ___________. A. the probability of accidental discharges B. people who frequently cause accidents C. the rate of the discharges D. the likelihood that continuous discharges are damaging Difficulty: Easy
30. The policy challenge for episodic emissions is to manage ____________. A. the probability of accidental discharges B. the likelihood that continuous discharges are damaging C. people who frequently cause accidents D. air pollution in developing nations Difficulty: Easy
31. Using a green Gross Domestic Product measure, an increase in pollution would A. increase green GDP B. decrease green GDP C. not be included in green GDP D. gives the same green GDP value as traditional GDP
32. Using a green Gross Domestic Product measure, an increase in spending on solar panels would A. increase green GDP B. decrease green GDP C. not be included in green GDP D. give the same green GDP value as traditional GDP
33. In a PPC figure sustainability is illustrated when A. the PPC does not shift toward the origin B. the economy reduces market goods and increases environmental quality C. the economy reduced environmental quality and increases market goods D. the PPC shifts toward the origin
2-8 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.