ECON 2J03 Environmental Economics Quiz 1 | ECON2J03 Quiz 1 Answered Correctly Latest Fall 2025/26.

ECON 2J03 Quiz 1 Questions and Answers_ 2025. A small coastal community with the power to control access to its scallop fishery is an example of . Question 1 options: A. common property rights B. private property rights C. a positive externality D. an open access resource 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) . Question 2 options: A. positive externality; negative externality B. direct benefit; opportunity cost C. direct benefit; negative externality D. positive externality; opportunity cost 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 . Question 4 options: A. sustainable In the following figure, the mix of carbon-intensive goods and environmental quality given by providessociety with the highest possible level of well-being. Question 5 options: The residuals from production can be reduced by . Question 7 options: 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 An accidental oil spill is an example of a(n) emission while municipal treated waste is an example of a(n) emission. Question 8 options: A. continuous; episodic B. global; local In the figure Below, (a) represents . A. Bundle A D. all of the choices are correct C. episodic; continuousQuestion 9 options: A. the extraction of resources from nature In the figure Below, panel (b) represents . Question 10 options: A. a change in technology allowing for increased production B. the inevitable consequences of improved air quality C. the inevitable consequences of air pollution D. intertemporal linkage between production decisions today and production ability tomorrow If we reuse goods that were once considered waste, we need more raw natural resources in production, increasing overall residuals. Question 11 options: B. FalseIn the following figure the total cost of producing the 500th unit of output is . Question 12 options: A. $550 B. $150,000 C. $212,500 The following figure shows the impact of technological change on the marginal cost of producing a certain good. Producing Q* units with the new technology reduces total cost by an amount equal to .Question 13 options: A. area a B. area b Suppose there are three firms in the market for a certain good. Firm 1's marginal cost equation is MC = 4 + 0.25QS, firm 2's marginal cost equation is MC = 0.5QS and firm 3's marginal cost equation is MC = 2 + QS. What is the aggregate supply equation for this market? Question 15 options: A. QS = 4P - 16 B. QS = 7P - 18 The value of a good or service is measured by . Question 16 options: A. the willingness to pay B. the sacrifice a person experiences in terms of other goods C. the sacrifice a consumer experiences in generalized purchasing power D. all of the above All of the following are difficulties with using demand curves to estimate environmental benefits, except Question 17 options: A. demand curves are constructed based on ability to pay. B. consumers are sometimes unaware of the benefits of environmental quality. C. downward sloping demand curves inaccurately imply declining benefits.When production results in environmental degradation, private firms do not take the into consideration when making their output decisions resulting in . Question 18 options: A. social costs; pollution B. market failure; an externality C. external costs; a market failure In the Table below, social MWTP equals private MWTP plus external benefits from production. In this market, the socially efficient level of output is . Quantity Private MWTP External Benefits Social MWTP Marginal Cost Q1 12 5 17 4 Q2 11 5 16 5 Q3 8 4 12 8 Q4 5 4 9 9 Q5 4 4 8 10 Question 19 options: A. Q2 B. Q3 C. Q4When production results in environmental degradation, private firms do not take the into consideration when making their output decisions resulting in . Question 1 options: A. social costs; pollution B. market failure; an externality C. external costs; a market failure D. market failure; pollution The value of a good or service is measured by . Question 3 options: A. the willingness to pay B. the sacrifice a person experiences in terms of other goods C. the sacrifice a consumer experiences in generalized purchasing power D. all of the above The stock of natural and environmental resources that sustain ecosystems, the economy and the well-being of individuals is referred to as . Question 4 options: A. renewable resources B. natural capital C. biological diversity D. ambient quality In the case of open access resources and public goods, the competitive market output level will be .Question 5 options: A. equal to the socially efficient level of output B. unequal to the socially efficient level of output In the figure Below, (a) represents . Question 6 options: A. the extraction of resources from nature 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 . Question 7 options: A. adaption B. the precautionary principle 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) . Question 9 options: A. positive externality; negative externalityC. direct benefit; negative externality D. positive externality; opportunity cost In the following figure the total cost of producing the 500th unit of output is . Question 10 options: A. $550 B. $150,000 C. $212,500 D. $275,000 All of the following are difficulties with using demand curves to estimate environmental benefits, except Question 12 options: A. demand curves are constructed based on ability to pay. B. consumers are sometimes unaware of the benefits of environmental quality. C. downward sloping demand curves inaccurately imply declining benefits. An economy that has the ability to allow the level of people's well-being to rise or at least remain constant overtime is . Question 14 options: An accidental oil spill is an example of a(n) emission while municipal treated waste is an example of a(n) emission. Question 16 options: A. continuous; episodic Technological progress . Question 17 options: In the Table below, social MWTP equals private MWTP plus external benefits from production. In this market, the socially efficient level of output is . Quantity Private MWTP External Benefits Social MWTP Marginal Cost Q1 12 5 17 4 Q2 11 5 16 5 Q3 8 4 12 8 Q4 5 4 9 9 Q5 4 4 8 10 Question 18 options: A. Q2 B. Q3 A. sustainable C. episodic; continuous A. results in a downward shift of the marginal cost curveC. Q4 A small coastal community with the power to control access to its scallop fishery is an example of . Question 20 options: A. common property rights