This quiz works best with JavaScript enabled. Home > Finance > Economics > Environmental Economics > Environmental Economics – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Environmental Economics Quiz 2 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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. 2. 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. 3. 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. 4. 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 the same as their marginal private benefit. B) The marginal benefits of each acre preserved increase with more preservation. C) Their willingness to pay for forest preservation is likely to be higher than their marginal private benefit. D) Their willingness to pay for forest preservation is likely to be lower than their marginal private benefit. Show Answer Correct Answer: D) Their willingness to pay for forest preservation is likely to be lower than their marginal private benefit. 5. Tiwari Committee was appointed in ..... A) Industrial sickness. B) Sugar industry. C) Public sector disinvestment. D) Introduction of SICA. Show Answer Correct Answer: A) Industrial sickness. 6. 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. 7. 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. 8. 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. 9. 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. 10. A major externality is the amount of ..... in the atmosphere A) Carbon dioxide. B) Oxygen. C) Ash particles. D) Water vapor. Show Answer Correct Answer: A) Carbon dioxide. 11. What needs to be done first before proposing a solution to an environmental problem? A) Get organized to take action. B) Help a solution become a law. C) Identify the specific causes of the problem. D) Gain access to policymakers. Show Answer Correct Answer: C) Identify the specific causes of the problem. 12. When demand for a product is low, the producer will A) Raise price and drop supply. B) Raise price and supply. C) Drop price and raise supply. D) Drop price and supply. Show Answer Correct Answer: D) Drop price and supply. 13. What is an activity that has a negative impact on society and the environment called? A) Negative externality. B) Positive externality. C) No externality. D) All true. Show Answer Correct Answer: A) Negative externality. 14. Which one of the following policies would not reduce water use? A) Removing water subsidies. B) Micro-irrigation technology. C) Reusing wastewater for industrial uses. D) Subsidising irrigation systems. E) Full marginal-cost pricing. Show Answer Correct Answer: D) Subsidising irrigation systems. 15. When considering noise pollution, why is the marginal propensity to consume (MPC) increasing in output? A) Economies of scale. B) The law of diminishing returns. C) It is the supply curve. D) None of above. Show Answer Correct Answer: B) The law of diminishing returns. 16. Ultimately, where do economies get their resources and put their wastes? A) Ecosystems. B) Factories. C) Cities. D) Households. Show Answer Correct Answer: A) Ecosystems. 17. Global Climate Change-Which one of the following statements regarding carbon taxes is false? A) Carbon taxes would not set the exact level of carbon emissions. B) Carbon taxes would increase coal prices more than other fossil fuel prices. C) Carbon taxes would reduce negative environmental externalities. D) A revenue-neutral carbon tax implies an increase in income and other taxes. Show Answer Correct Answer: D) A revenue-neutral carbon tax implies an increase in income and other taxes. 18. Which one doesn't belong Ecosystem Services A) Supportingservices. B) Shoping sevices. C) Provisioningservices. D) Culturalservices. Show Answer Correct Answer: B) Shoping sevices. 19. Logan and Jaden are discussing the consequences of a factory polluting a nearby river. They are trying to understand the situation when a market does not reflect the full costs and benefits of actions. What is this called? A) Green tax. B) Market failure. C) Non-market value. D) Cost-benefit analysis. Show Answer Correct Answer: B) Market failure. 20. The first factories Act was enacted in ..... A) 1897. B) 1881. C) 1885. D) 1895. Show Answer Correct Answer: C) 1885. 21. This environmental problem easily arises because A) Public property. B) Its use cannot be prohibited. C) Ada free rider. D) All true. Show Answer Correct Answer: D) All true. 22. Double-bounded dichotomous choice CV is? A) "Taking into account the expenses of your neighbor are willing to pay Rubles for each visit to preserve this beach?. B) "Taking into account the expenses of your family are willing to pay Rubles for each visit to preserve this beach?. C) "Taking into account the expenses of your colleagues are willing to pay Rubles for each visit to preserve this beach?. D) None of them. Show Answer Correct Answer: B) "Taking into account the expenses of your family are willing to pay Rubles for each visit to preserve this beach?. 23. Which economic characteristic of climate change is not correct? A) The private costs of greenhouse gas emissions generally exceed the societal costs of these emissions. B) Greenhouse gas emissions have intergenerational welfare consequences. C) Greenhouse gas emissions affect a public good which is the atmosphere. D) Climate change is a global externality in terms of both causes and effects. Show Answer Correct Answer: A) The private costs of greenhouse gas emissions generally exceed the societal costs of these emissions. 24. ETS-Which of the following factors doesn't contribute to the low and volatile prices for EUAs in the first two trading periods (phase I & II)? A) Large innovation and adoption of clean technologies leads to lower demand for EUAs. B) The emission cap was set well in advance and was inflexible to demand changes in the market. C) Companies under the EU ETS have used a large amount of offsets. D) The economic crisis started in 2008. Show Answer Correct Answer: A) Large innovation and adoption of clean technologies leads to lower demand for EUAs. 25. What is the first step in the environmental policy process? A) Get organized. B) Identify the problem. C) Gain access to policy makers. D) Guide the solution to law. Show Answer Correct Answer: B) Identify the problem. 26. Which pollution cause hearing loss in organisms? A) Air pollution. B) Soil pollution. C) Water pollution. D) Noise pollution. Show Answer Correct Answer: D) Noise pollution. 27. Sustainable use of natural resources A) Preservation. B) Destruction. C) Conservation. D) Protection. Show Answer Correct Answer: C) Conservation. 28. In what economic system does the government determine what to produce, how to produce it, and how to market it? A) Traditional Economy. B) Market Economy. C) Command Economy. D) Mixed Economy. Show Answer Correct Answer: C) Command Economy. 29. Which school of economics warns that human economic systems could exceed the capacity of the environment to handle the pollutants and wastes we produce? A) Neoclassical. B) Capitalistic. C) Classical. D) Socialistic. E) Ecological. Show Answer Correct Answer: E) Ecological. 30. Waste production can be decreased by determining the ..... of ecosystem services A) Way people use or their dislike. B) Destruction. C) Monetary value. D) Importance. Show Answer Correct Answer: C) Monetary value. ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesEnvironmental Economics Quiz 1Environmental Economics Quiz 3Environmental Economics Quiz 4Environmental Economics Quiz 5Environmental Economics Quiz 6Environmental Economics Quiz 7 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books