,TESTBANK FOR Economics and the Environment,
10th Edition Goodstein
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
, Student Review Questions
Chapter 1: Four Economic Questions About Climate Change
1. CO2 is a/n _____—a compound that traps reflected heat from the earth’s surface and
contributes to global warming.
Answer: greenhouse gas
2. Increased warming beyond that would have steadily greater and greater costs and also could
result in truly catastrophic outcomes from so-called _____ in the earth’s systems.
Answer: tipping points
3. This book focuses on the economic issues at stake in cases such as global warming, where
human actions substantially alter the natural environment. In the process, this book examine
the following four questions:
1. __________
2. __________
3. __________
4. __________
Answer
1. How much pollution is too much?
2. Is government up to the job?
3. How can we do better?
4. Can we resolve global issues?
4. Positive feedbacks in the environment have led some researchers to believe that at some
point, global warming will trigger a _____, in which the initial warming will feed on itself.
Answer: runaway greenhouse effect
1
,5. At a UN-sponsored meeting in France in 2015, almost all the countries in the world agreed to
the _____, a set of voluntary commitments to cut global warming pollution.
Answer: Paris Climate Agreement
6. Weighing benefits against costs is called _____.
Answer: benefit–cost analysis
7. _____ is a dollar measure of all the costs imposed on society of a ton of carbon dioxide
released into the atmosphere today.
Answer: The social cost of carbon (SCC).
8. The _____ requires reducing pollution to (socially defined) “safe” levels, unless the costs of
doing so are prohibitive.
Answer: safety standard
9. The _____ standard generally requires protecting major natural ecosystems from significant
disruptions—unless the costs of doing so are prohibitive.
Answer: sustainability
10. There are two obstacles to effective government action. What are they?
1. __________
2. __________
Answer
1. Inperfect information
2. Opportunity for political influence
2
,11. Traditional _____ view governmental intervention as a necessary evil and argue for as
limited a government role as is possible in all affairs, including environmental affairs.
Answer: conservatives
12. Government could take many possible actions to control CO2 emissions. We can divide such
measures into roughly three categories. What are they?
1. __________
2. __________
3. __________
Answer
1. Command-and-control regulation
2. Incentive-based regulation
3. Clean technologies
13. The _____ provided a series of tax incentives to reduce the cost of a whole suite of low-
carbon technologies, ranging from the construction of electric vehicle and battery plants, to
new solar and wind projects, to household measures to replace fuel oil and natural gas
heating systems with electric heat pumps.
Answer: 2022 U.S. law, the Inflation Reduction Act
14. CO2 reduction is what is known as a/n _____, a good that is consumed in common.
Answer: public good
3
,Student Review Questions
Chapter #2: Ethics and Economics
1. The question “How much pollution is too much?” is what economists call a _____ issue—it
focuses our attention on what should be, rather than what is.
Answer: normative
2. The underlying human-centered (or anthropocentric) moral foundation of economic analysis
is known as _____.
Answer: utilitarianism
3. _____ argues that independent of the utility of doing so, people have a moral responsibility to
treat the earth with respect.
Answer: Biocentrism
4. Utilitarians have two difficult questions to settle before they can apply their analysis to issues
such as pollution. What are they?
1. ___________
2. ___________
Answer
1. What in fact makes people happy?”
2. How does one add up individual happiness to social happiness?
5. _____ are very broadly defined to include any and all things that people desire.
Answer: Goods
1
,6. One can express the positive relationship between consumption of goods and utility in a
mathematical relationship known as a _____.
Answer: utility function
7. One additional assumption about this utility–consumption relationship is often made: _____.
Answer: More is better
8. To make their assumptions about fairness explicit, economists often specify a _____, which
determines a “desirable” way of adding up individual utilities
Answer: social welfare function
9. One social judgment we might make is that additions to consumption are equally valued by
individuals. This is called an assumption of _____, and it allows us to directly weigh the
impact of welfare on changes in the patterns of consumption.
Answer: equal marginal utility of consumption
10. Under an efficiency standard, the idea is to maximize the _____ of economic growth, by
carefully weighing the benefits against the costs.
Answer: net benefits
11. The _____ says that social welfare does not rise if increases in consumption today come at
the expense of the welfare of our children.
Answer: sustainability standard
12. The _____ says that people have a right to protection from unsolicited damage to their health.
Answer: safety standard
2
,Student Review Questions
Chapter 3: Pollution and Resource Degradation as Externalities
1. Human production and consumption processes rely on the environment as a _____ of raw
materials.
Answer: source
2. _____ is the input that nature provides for our production and consumption processes.
Answer: Natural capital
3. Economists define pollution as a _____: a cost of a transaction not borne by the buyer or
seller.
Answer: negative externality
4. Many forms of natural capital, both sources and sinks, are not privately owned. Because of
this, pure free-market systems will generate too much pollution by any of the standards
considered in this book—efficiency, safety, or sustainability. There are two related reasons
for this. What are they?
1. __________
2. __________
Answer
1. The open-access problem
2. The public goods problem
1
,5. From an economist’s point of view, market systems generate pollution because many natural
inputs into the production of goods and services—such as the air and water bodies—are
_____.
Answer: underpriced
6. If power companies were forced to provide compensation to the families of the victims for
the damages they imposed, this would be called _____.
Answer: internalizing the externalities
7. When natural capital is used efficiently, long-run economic profits will be earned by those
who retain access to the resource. These long-run profits, generated by restricted access to
natural capital, are called _____.
Answer: resource rents
8. A few _____ have advocated eliminating many environmental regulations and then relying
on lawsuits by injured parties to “internalize” externalities.
Answer: free-market environmentalists
9. _____ goods are goods enjoyed in common.
Answer: Public
10. In most towns, the response to noise pollution is a government regulation called a _____ law.
Answer: nuisance
11. _____ costs are the costs associated with making a market deal for public goods.
Answer: Transaction
2
, 12. In recent years, a new paradigm around economics and the environment has begun to
emerge, the _____ movement.
Answer: sustainable business
13. The sustainable business wave began to build in the 2000s. Three levels of cost-savings have
been identified. What are they?
1. __________
2. __________
3. __________
Answer
1. Risk reduction
2. Resource savings
3. Culture of innovation
3
10th Edition Goodstein
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
, Student Review Questions
Chapter 1: Four Economic Questions About Climate Change
1. CO2 is a/n _____—a compound that traps reflected heat from the earth’s surface and
contributes to global warming.
Answer: greenhouse gas
2. Increased warming beyond that would have steadily greater and greater costs and also could
result in truly catastrophic outcomes from so-called _____ in the earth’s systems.
Answer: tipping points
3. This book focuses on the economic issues at stake in cases such as global warming, where
human actions substantially alter the natural environment. In the process, this book examine
the following four questions:
1. __________
2. __________
3. __________
4. __________
Answer
1. How much pollution is too much?
2. Is government up to the job?
3. How can we do better?
4. Can we resolve global issues?
4. Positive feedbacks in the environment have led some researchers to believe that at some
point, global warming will trigger a _____, in which the initial warming will feed on itself.
Answer: runaway greenhouse effect
1
,5. At a UN-sponsored meeting in France in 2015, almost all the countries in the world agreed to
the _____, a set of voluntary commitments to cut global warming pollution.
Answer: Paris Climate Agreement
6. Weighing benefits against costs is called _____.
Answer: benefit–cost analysis
7. _____ is a dollar measure of all the costs imposed on society of a ton of carbon dioxide
released into the atmosphere today.
Answer: The social cost of carbon (SCC).
8. The _____ requires reducing pollution to (socially defined) “safe” levels, unless the costs of
doing so are prohibitive.
Answer: safety standard
9. The _____ standard generally requires protecting major natural ecosystems from significant
disruptions—unless the costs of doing so are prohibitive.
Answer: sustainability
10. There are two obstacles to effective government action. What are they?
1. __________
2. __________
Answer
1. Inperfect information
2. Opportunity for political influence
2
,11. Traditional _____ view governmental intervention as a necessary evil and argue for as
limited a government role as is possible in all affairs, including environmental affairs.
Answer: conservatives
12. Government could take many possible actions to control CO2 emissions. We can divide such
measures into roughly three categories. What are they?
1. __________
2. __________
3. __________
Answer
1. Command-and-control regulation
2. Incentive-based regulation
3. Clean technologies
13. The _____ provided a series of tax incentives to reduce the cost of a whole suite of low-
carbon technologies, ranging from the construction of electric vehicle and battery plants, to
new solar and wind projects, to household measures to replace fuel oil and natural gas
heating systems with electric heat pumps.
Answer: 2022 U.S. law, the Inflation Reduction Act
14. CO2 reduction is what is known as a/n _____, a good that is consumed in common.
Answer: public good
3
,Student Review Questions
Chapter #2: Ethics and Economics
1. The question “How much pollution is too much?” is what economists call a _____ issue—it
focuses our attention on what should be, rather than what is.
Answer: normative
2. The underlying human-centered (or anthropocentric) moral foundation of economic analysis
is known as _____.
Answer: utilitarianism
3. _____ argues that independent of the utility of doing so, people have a moral responsibility to
treat the earth with respect.
Answer: Biocentrism
4. Utilitarians have two difficult questions to settle before they can apply their analysis to issues
such as pollution. What are they?
1. ___________
2. ___________
Answer
1. What in fact makes people happy?”
2. How does one add up individual happiness to social happiness?
5. _____ are very broadly defined to include any and all things that people desire.
Answer: Goods
1
,6. One can express the positive relationship between consumption of goods and utility in a
mathematical relationship known as a _____.
Answer: utility function
7. One additional assumption about this utility–consumption relationship is often made: _____.
Answer: More is better
8. To make their assumptions about fairness explicit, economists often specify a _____, which
determines a “desirable” way of adding up individual utilities
Answer: social welfare function
9. One social judgment we might make is that additions to consumption are equally valued by
individuals. This is called an assumption of _____, and it allows us to directly weigh the
impact of welfare on changes in the patterns of consumption.
Answer: equal marginal utility of consumption
10. Under an efficiency standard, the idea is to maximize the _____ of economic growth, by
carefully weighing the benefits against the costs.
Answer: net benefits
11. The _____ says that social welfare does not rise if increases in consumption today come at
the expense of the welfare of our children.
Answer: sustainability standard
12. The _____ says that people have a right to protection from unsolicited damage to their health.
Answer: safety standard
2
,Student Review Questions
Chapter 3: Pollution and Resource Degradation as Externalities
1. Human production and consumption processes rely on the environment as a _____ of raw
materials.
Answer: source
2. _____ is the input that nature provides for our production and consumption processes.
Answer: Natural capital
3. Economists define pollution as a _____: a cost of a transaction not borne by the buyer or
seller.
Answer: negative externality
4. Many forms of natural capital, both sources and sinks, are not privately owned. Because of
this, pure free-market systems will generate too much pollution by any of the standards
considered in this book—efficiency, safety, or sustainability. There are two related reasons
for this. What are they?
1. __________
2. __________
Answer
1. The open-access problem
2. The public goods problem
1
,5. From an economist’s point of view, market systems generate pollution because many natural
inputs into the production of goods and services—such as the air and water bodies—are
_____.
Answer: underpriced
6. If power companies were forced to provide compensation to the families of the victims for
the damages they imposed, this would be called _____.
Answer: internalizing the externalities
7. When natural capital is used efficiently, long-run economic profits will be earned by those
who retain access to the resource. These long-run profits, generated by restricted access to
natural capital, are called _____.
Answer: resource rents
8. A few _____ have advocated eliminating many environmental regulations and then relying
on lawsuits by injured parties to “internalize” externalities.
Answer: free-market environmentalists
9. _____ goods are goods enjoyed in common.
Answer: Public
10. In most towns, the response to noise pollution is a government regulation called a _____ law.
Answer: nuisance
11. _____ costs are the costs associated with making a market deal for public goods.
Answer: Transaction
2
, 12. In recent years, a new paradigm around economics and the environment has begun to
emerge, the _____ movement.
Answer: sustainable business
13. The sustainable business wave began to build in the 2000s. Three levels of cost-savings have
been identified. What are they?
1. __________
2. __________
3. __________
Answer
1. Risk reduction
2. Resource savings
3. Culture of innovation
3
