This quiz works best with JavaScript enabled. Home > Economics > Environmental Economics > Environmental Economics – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Environmental Economics Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The economic value of a good is measured by A) The maximum you are willing to give up to obtain a good. B) The minimum you are willing to give up to obtain a good. C) The amount you can get as a free rider. D) Its market price. Show Answer Correct Answer: A) The maximum you are willing to give up to obtain a good. 2. Some people argue that because Earth's resources are ultimately limited, nonstop economic growth is A) Not a problem. B) Inevitable. C) Not sustainable. D) Highly desirable. Show Answer Correct Answer: C) Not sustainable. 3. Jonathan is considering whether to buy a new car or a used one. He is comparing the disadvantages and advantages of each option. What is Jonathan doing? A) Checking the supply. B) Setting a policy. C) Performing a cost-benefit analysis. D) Assessing the demand. Show Answer Correct Answer: C) Performing a cost-benefit analysis. 4. What is environmental economics is concerned with? A) The impact of the economy on the environment. B) The significance of the environment to the economy. C) The appropriate way of regulating economic activity. D) All of these. Show Answer Correct Answer: D) All of these. 5. ETS-Which of the following statement about the ETS is correct? A) The initial allocation of the emission allowances in the ETS will affect the performance of the ETS under competitive market with zero transaction costs. B) To achieve the abatement goal of the Paris agreement, it is important to have a stable and high price for the emission allowances. C) The ETS is cost effective if the abatement costs are similar. D) The total greenhouse gas emission is uncertain under the ETS. Show Answer Correct Answer: B) To achieve the abatement goal of the Paris agreement, it is important to have a stable and high price for the emission allowances. 6. Headquartered in New York City, the 190 member nations of the following organization work together to promote peace and to help solve economic, social, cultural, and humanitarian problems. A) World Trade Organization. B) European Union. C) United Nations. D) Kyoto Protocol. Show Answer Correct Answer: C) United Nations. 7. In the U.S., laws enacted from the 1780s to the late 1800s reflected the perception that A) The amount of land and natural resources in the West was endless. B) The natural resources of the West could be used up and required legal protection. C) Americans were living amid dirtier air, dirtier water, and more waste and toxic chemicals. D) A sustainable future should be a primary goal. Show Answer Correct Answer: A) The amount of land and natural resources in the West was endless. 8. Global Climate Change-Which of the following measures is an example of an adaptive strategy? A) Building dikes. B) Planting more trees. C) Using backstop energy technologies. D) Implementing a carbon tax to reduce emissions. Show Answer Correct Answer: A) Building dikes. 9. According to Gifford Pinchot A) Natural resources should be given for greatest number of people for the longest time. B) Natural resources should be protected by government. C) It is the duty of the citizens to protect resources. D) None. Show Answer Correct Answer: A) Natural resources should be given for greatest number of people for the longest time. 10. The number one result of China's air pollution A) Acid rain and flooding. B) Rapid increase in capital. C) Respiratory and heart disease. D) Government agreement to clean factories. Show Answer Correct Answer: C) Respiratory and heart disease. 11. A law that prohibits dumping wastes into the ocean and punishes people who dump wastes demonstrates which approach to environmental policy? A) Green tax. B) Command-and-control. C) Cap-and-trade. D) Subsidy. Show Answer Correct Answer: B) Command-and-control. 12. The Second Law of Thermodynamics states A) Material and energy cannot be created and cannot be destroyed. B) Material and energy can be created and destroyed. C) Nature's capacity has limits to break down materials and energy. D) Nature's capacity has no limits to break down materials and energy. Show Answer Correct Answer: C) Nature's capacity has limits to break down materials and energy. 13. Marginal control costs typically A) Decreases with the amount of controlled pollution. B) Increases with the amount of controlled pollution. C) Similar with the amount of controlled pollution. D) None of above. Show Answer Correct Answer: B) Increases with the amount of controlled pollution. 14. Consider a society with two individuals, who value forest preservation. Which of the following statements is true? A) Their willingness to pay for forest preservation is likely to be higher than their marginal private benefit. B) Their willingness to pay for forest preservation is likely to be lower than their marginal private benefit. C) Their willingness to pay for forest preservation is likely to be the same as their marginal private benefit. D) The marginal benefits of each acre preserved increase with more preservation. Show Answer Correct Answer: B) Their willingness to pay for forest preservation is likely to be lower than their marginal private benefit. 15. Tiwari Committee was appointed in ..... A) Introduction of SICA. B) Public sector disinvestment. C) Industrial sickness. D) Sugar industry. Show Answer Correct Answer: C) Industrial sickness. 16. Every policy, including in the environmental sector, must have negative effects. If in an environmental market, losses due to this policy are called? A) Deadweight loss. B) Deadweight profit. C) Deadweight margin. D) All wrong. Show Answer Correct Answer: A) Deadweight loss. 17. The Taj Mahal, Lotus Temple, Golden Temple, India Gate and other famous heritage monuments are being affected by ..... A) Air pollution. B) Water pollution. C) Noise pollution. D) All of the above. Show Answer Correct Answer: A) Air pollution. 18. What is the main advantage of a system of tradable permits relative to a carbon tax? A) The level of total emissions is known with certainty. B) It is easier to understand. C) It results in a lower level of price increases to consumers. D) The price of permits is known with certainty. E) It encourages technological innovation. Show Answer Correct Answer: A) The level of total emissions is known with certainty. 19. The two economists who won the Nobel Prize for Economics in 2018 for their work on environmental protection are: A) Samuelson and Angus Deaton. B) Hicks and Arrow. C) Romer and Nordhaus. D) Abhijit Banerjee and Esther Duflo. Show Answer Correct Answer: C) Romer and Nordhaus. 20. A major externality is the amount of ..... in the atmosphere A) Oxygen. B) Water vapor. C) Carbon dioxide. D) Ash particles. Show Answer Correct Answer: C) Carbon dioxide. ← PreviousNext →Related QuizzesEconomics QuizzesEnvironmental Economics Quiz 1Environmental Economics Quiz 3Environmental Economics Quiz 4Environmental Economics Quiz 5Environmental Economics Quiz 6Environmental Economics Quiz 7Environmental Economics Quiz 8Environmental Economics Quiz 9Environmental Economics Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books