This quiz works best with JavaScript enabled. Home > Finance > Economics > Environmental Economics > Environmental Economics – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Environmental Economics Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Jaden wants to know the amount of a specific toy people will buy at a given price if free to do so. What is this called? A) Lobbying. B) Non-market value. C) Supply. D) Demand. Show Answer Correct Answer: D) Demand. 2. When did Environmental Economics become a formalised subfield of economics? A) 1990s. B) 1970s. C) 1980s. D) 2000. Show Answer Correct Answer: A) 1990s. 3. "Energy Star, " "USDA Organic, " and "Fair Trade Certified" are all examples of A) Ecolabelling. B) Market failure. C) Ecosystems ecosystems. D) Non-market values. Show Answer Correct Answer: A) Ecolabelling. 4. Water economics-The main problem with desalination to increase water supplies is that ..... A) Supplies are usually contaminated with pesticides. B) Communities tend to be located too far from water supplies. C) Water tends to evaporate before it can be used. D) There are few available sources. E) It is very expensive. Show Answer Correct Answer: E) It is very expensive. 5. What is a good which is produced domestically but sold in a foreign country? A) Gross Domestic Product. B) Import. C) Export. D) Human Development Index. Show Answer Correct Answer: C) Export. 6. Logan wants to buy a new smartphone. What is the amount of smartphones people like Logan will buy at a given price if free to do so? A) Lobbying. B) Non-market value. C) Supply. D) Demand. Show Answer Correct Answer: D) Demand. 7. Cap and trade was done successfully to prevent sulfur dioxide from directly causing A) Acid rain. B) Destruction of habitats. C) Wildlife to die off. D) Clam shells to dissolve. Show Answer Correct Answer: A) Acid rain. 8. Many groups try to influence government policies through A) Preaching. B) Doing Nothing. C) Lobbying. D) Crying. Show Answer Correct Answer: C) Lobbying. 9. An ecosystem is defined as A) The transition zone between grassland and desert. B) A group of interactive species and their environment. C) A body of freshwater. D) The lowland area on either side of a river. E) All choices are correct. Show Answer Correct Answer: B) A group of interactive species and their environment. 10. Firms with high marginal costs of control will have incentives to buy allowance from firms with low marginal control costs. This environmental solution is A) Emissions Charges. B) Cap and Trade System. C) Emission Standards. D) None above. Show Answer Correct Answer: B) Cap and Trade System. 11. Common Pool Resource-The open-access equilibrium is usually ..... A) Economically efficient and ecologically sustainable. B) Economically inefficient but ecologically sustainable. C) Economically efficient but ecologically unsustainable. D) Neither economically efficient nor ecologically sustainable. Show Answer Correct Answer: D) Neither economically efficient nor ecologically sustainable. 12. Why is discounting important in cost-benefit models? A) People care about the present more & prefer to receive benefits earlier. B) People care about the present more & prefer to receive benefits later. C) People care less about the present & prefer to receive benefits later. D) People care more about the future and prefer to receive later. Show Answer Correct Answer: A) People care about the present more & prefer to receive benefits earlier. 13. Which school of economics considers natural capital to be important but not indispensable? A) Capitalistic. B) Classical. C) Socialistic. D) Neoclassical. E) Capitalistic. Show Answer Correct Answer: D) Neoclassical. 14. Why don't environmental management standards work? A) Limitations of statutory regulations. B) Information limitations. C) Non-uniformity of pollution. D) All true. Show Answer Correct Answer: D) All true. 15. According to the ....., the economy operates within social relationships and the whole of society is embedded within the natural world or environment, which is the service provider that enables human society to exist. A) Neo-classical economists view. B) Triple bottom line. C) Classical economists view. D) Green economists view. Show Answer Correct Answer: D) Green economists view. 16. One of the weaknesses of technology-based standards is: A) Companies cannot look for the cheapest technology. B) Companies are trying to pollute. C) Pollution is not the same between regions. D) All true. Show Answer Correct Answer: A) Companies cannot look for the cheapest technology. 17. What is true of many industry estimates of the costs associated with pollution control regulations? A) They are almost always more (and often much more) than the actual costs of complying. B) They typically underestimate the costs, resulting in the need for government assistance. C) They are usually reasonably accurate. D) They are usually quite similar to the estimates provided by environmental groups. E) They are typically quite similar to the governmental estimates. Show Answer Correct Answer: A) They are almost always more (and often much more) than the actual costs of complying. 18. Which price structure would tend to most effectively promote water conservation? A) Increasing block structure. B) Constant price structure. C) Decreasing block structure. D) Marginal price structure. E) Uniform block structure. Show Answer Correct Answer: A) Increasing block structure. 19. Setting ..... on environmental services would allow people to better perform a cost benefit analysis A) Regulations. B) Controls. C) Values. D) Limits. Show Answer Correct Answer: C) Values. 20. This Act awards money to companies to invest in and develop new, less polluting technology A) The United States Recovery ad Reinvestment Act. B) The United States Pollution Defense Act. C) The Business Assistance Act. D) The United States Technology Act. Show Answer Correct Answer: A) The United States Recovery ad Reinvestment Act. 21. The economic value of a good is measured by A) The amount you can get as a free rider. B) The minimum you are willing to give up to obtain a good. C) Its market price. D) The maximum you are willing to give up to obtain a good. Show Answer Correct Answer: D) The maximum you are willing to give up to obtain a good. 22. Some people argue that because Earth's resources are ultimately limited, nonstop economic growth is A) Highly desirable. B) Not a problem. C) Inevitable. D) Not sustainable. Show Answer Correct Answer: D) Not sustainable. 23. 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. 24. 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. 25. 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. 26. 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) Kyoto Protocol. C) European Union. D) United Nations. Show Answer Correct Answer: D) United Nations. 27. 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. 28. Global Climate Change-Which of the following measures is an example of an adaptive strategy? A) Planting more trees. B) Using backstop energy technologies. C) Implementing a carbon tax to reduce emissions. D) Building dikes. Show Answer Correct Answer: D) Building dikes. 29. 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. 30. 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. 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