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EC238 Test Bank - Quiz Bank
Environmental Economics
Chap 1_4ce
Student:
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
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
3. A small coastal community with the power to control access to its scallop fishery is an example of
.
A. common property rights
B. private property rights
C. an open access resource
D. a positive externality
4. A common pasture on which anyone is allowed to freely graze sheep or cattle is an example of
.
A. private property rights
B. an open access resource
C. common property rights
D. community property rights
5. The level of pollution can be negotiated privately based on property rights when only a few
parties are involved and the source, amount and type of pollution is clearly identifiable.
A. cost-effective
B. zero-emissions
C. fair
D. socially efficient
6. When you enjoy the view of your neighbour's prize-winning garden, this is an example of .
A. common property rights
B. a positive externality
C. a negative externality
D. a public good
7. When we drive our cars, we get the of transportation services, while others experience the
detrimental effects such as pollution and congestion which environmental economists refer to as a(n)
.
A. positive externality; negative externality
B. direct benefit; opportunity cost
C. direct benefit; negative externality
D. positive externality; opportunity cost
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8. The number of kilometres a household drives its vehicles each year is determined by its of
driving.
A. opportunity cost
B. private cost
C. social cost
D. external cost
9. Forests, wetlands and oceans are referred to as because of their ability to absorb CO2.
A. carbon sources
B. carbon stores
C. carbon cycles
D. carbon sinks
10. The largest source of anthropogenic greenhouse gas emissions globally comes from .
A. electricity generation and heat
B. transportation
C. agriculture
D. coal mining
11. When considering strategies to mitigate the impact of climate change, the concept that society should
consider the trade-off between the cost of preventive measures taken today versus the benefits arising
from reduced future risk is known as .
A. adaption
B. the precautionary principle
C. benefit-cost analysis
D. climate modeling
12. A tax on carbon emissions, standards to improve the energy efficiency of vehicles and appliances and
policies that promote solar and wind energy are all examples of .
A. the precautionary principle
B. adaption
C. carbon trading
D. greenhouse gas mitigation policies
13. 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
14.14.
In the following figure, the mix of carbon-intensive goods and environmental quality given by
provides society with the highest possible level of well-being.
A.
bundle A
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B.
bundle B
C.
bundle C
D.
none of the choices are correct
15. Economic efficiency is the only criterion used by environmental economists to evaluate environmental
policies.
True False
16. People make the decision to pollute or not based on the incentives that arise from the set of economic and
social institutions under which they find themselves.
True False
17. Only profit-motivated corporations are responsible for pollution.
True False
18. Environmental resources generally have well defined property rights.
True False
19. Anthropogenic sources of carbon dioxide include volcanic activity, decaying plant matter and
photosynthesis.
True False
20. Coal-fired plants are a major source of greenhouse gas emissions in the electricity sector worldwide.
True False
21. Climate change models have predicted an increase in the earth's temperature, greater climate variability
and more extreme weather events in the 21st century if greenhouse gas emissions from human activity
continue to be emitted at their current pace.
True False
22. The production possibility frontier showing the trade-offs between production of high-carbon goods and
environmental quality for a certain region never changes.
True False
23. Assume the natural environment including air, water and land can be used to produce either good A, B
or C (but not all). If the value of use is $50 for good A, $60 for good B and $40 for good C, which good
should be produced if the decision is based on economic efficiency?
24. Assume the natural environment including air, water and land can be used to produce either good X, Y or
Z (but not all). If the value of use is $700 for good X, $600 for good Y and $400 for good Z, which good
should be produced if the decision is based on economic efficiency?
, lOMoAR cPSD| 11700591
25. Define the three different types of equity employed in environmental economics to help evaluate
economic outcomes.
26. List three examples of policies that could be implemented to reduce emissions from household vehicle
use and very briefly explain how each would result in lower emissions.
Chap 1_4ce Key
1. B
2. D
3. A
4. B
5. D
6. B
7. C
8. B
9. D
10. A
11. B
12. D
13. A
14. A
EC238 Test Bank - Quiz Bank
Environmental Economics
Chap 1_4ce
Student:
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
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
3. A small coastal community with the power to control access to its scallop fishery is an example of
.
A. common property rights
B. private property rights
C. an open access resource
D. a positive externality
4. A common pasture on which anyone is allowed to freely graze sheep or cattle is an example of
.
A. private property rights
B. an open access resource
C. common property rights
D. community property rights
5. The level of pollution can be negotiated privately based on property rights when only a few
parties are involved and the source, amount and type of pollution is clearly identifiable.
A. cost-effective
B. zero-emissions
C. fair
D. socially efficient
6. When you enjoy the view of your neighbour's prize-winning garden, this is an example of .
A. common property rights
B. a positive externality
C. a negative externality
D. a public good
7. When we drive our cars, we get the of transportation services, while others experience the
detrimental effects such as pollution and congestion which environmental economists refer to as a(n)
.
A. positive externality; negative externality
B. direct benefit; opportunity cost
C. direct benefit; negative externality
D. positive externality; opportunity cost
, lOMoAR cPSD| 11700591
8. The number of kilometres a household drives its vehicles each year is determined by its of
driving.
A. opportunity cost
B. private cost
C. social cost
D. external cost
9. Forests, wetlands and oceans are referred to as because of their ability to absorb CO2.
A. carbon sources
B. carbon stores
C. carbon cycles
D. carbon sinks
10. The largest source of anthropogenic greenhouse gas emissions globally comes from .
A. electricity generation and heat
B. transportation
C. agriculture
D. coal mining
11. When considering strategies to mitigate the impact of climate change, the concept that society should
consider the trade-off between the cost of preventive measures taken today versus the benefits arising
from reduced future risk is known as .
A. adaption
B. the precautionary principle
C. benefit-cost analysis
D. climate modeling
12. A tax on carbon emissions, standards to improve the energy efficiency of vehicles and appliances and
policies that promote solar and wind energy are all examples of .
A. the precautionary principle
B. adaption
C. carbon trading
D. greenhouse gas mitigation policies
13. 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
14.14.
In the following figure, the mix of carbon-intensive goods and environmental quality given by
provides society with the highest possible level of well-being.
A.
bundle A
, lOMoAR cPSD| 11700591
B.
bundle B
C.
bundle C
D.
none of the choices are correct
15. Economic efficiency is the only criterion used by environmental economists to evaluate environmental
policies.
True False
16. People make the decision to pollute or not based on the incentives that arise from the set of economic and
social institutions under which they find themselves.
True False
17. Only profit-motivated corporations are responsible for pollution.
True False
18. Environmental resources generally have well defined property rights.
True False
19. Anthropogenic sources of carbon dioxide include volcanic activity, decaying plant matter and
photosynthesis.
True False
20. Coal-fired plants are a major source of greenhouse gas emissions in the electricity sector worldwide.
True False
21. Climate change models have predicted an increase in the earth's temperature, greater climate variability
and more extreme weather events in the 21st century if greenhouse gas emissions from human activity
continue to be emitted at their current pace.
True False
22. The production possibility frontier showing the trade-offs between production of high-carbon goods and
environmental quality for a certain region never changes.
True False
23. Assume the natural environment including air, water and land can be used to produce either good A, B
or C (but not all). If the value of use is $50 for good A, $60 for good B and $40 for good C, which good
should be produced if the decision is based on economic efficiency?
24. Assume the natural environment including air, water and land can be used to produce either good X, Y or
Z (but not all). If the value of use is $700 for good X, $600 for good Y and $400 for good Z, which good
should be produced if the decision is based on economic efficiency?
, lOMoAR cPSD| 11700591
25. Define the three different types of equity employed in environmental economics to help evaluate
economic outcomes.
26. List three examples of policies that could be implemented to reduce emissions from household vehicle
use and very briefly explain how each would result in lower emissions.
Chap 1_4ce Key
1. B
2. D
3. A
4. B
5. D
6. B
7. C
8. B
9. D
10. A
11. B
12. D
13. A
14. A
