This quiz works best with JavaScript enabled. Home > Finance > Economics > Environmental Economics > Environmental Economics – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Environmental Economics Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The NAFTA Commission on Environmental Cooperation (CEC) ..... A) Places tariffs on corn imports to protect the environment. B) Has ordered a phase-out of environmentally damaging gasoline additives. C) Requires harmonisation of environmental regulations. D) Produces reports on environmental issues but has few enforcement powers. E) Penalises corporations that harm the environment. Show Answer Correct Answer: D) Produces reports on environmental issues but has few enforcement powers. 2. Experimental Economics-Which of the following experiments has the highest level of control? A) Natural experiment. B) Artefactual field experiment. C) Framed field experiment. D) Natural field experiment (RCT). Show Answer Correct Answer: B) Artefactual field experiment. 3. Some economists warn that, even if the population stabilizes, the environmental impact per person is likely to increase. Which is the best explanation for why would that happen? A) The middle class will continue to grow and per person consumption will increase. B) The upper class will increase its consumption to preserve its advantages. C) Historic use of natural resources has created a tipping point that will necessitate higher consumption to maintain current living standards. D) The working class will be essentially excluded from the economy and will be forced into less advanced methods of production. E) Governments will seek to maintain growth by encouraging ecologically risky strategies. Show Answer Correct Answer: A) The middle class will continue to grow and per person consumption will increase. 4. Benefit Evaluation means the environmental quality gets reduced due to pollution, damaging the living beings and also physical assets. Say true or false. A) True. B) False. C) Both. D) None. Show Answer Correct Answer: A) True. 5. Val runs a bakery and she wants to sell her freshly baked bread. What is the amount of bread she offers for sale at a given price? A) Cost-benefit analysis. B) Supply. C) Lobbying. D) Non-market value. Show Answer Correct Answer: B) Supply. 6. We need to develope better laws and regulations to control A) Air, water and land pollution. B) Illegal dumping of waste. C) Large industries. D) Consumer spending. Show Answer Correct Answer: A) Air, water and land pollution. 7. One approach that can be taken to reduce pollution by the government is? A) Pigouvian tax. B) Abatement tax. C) Sameulson tax. D) Pollution tax. Show Answer Correct Answer: A) Pigouvian tax. 8. The main causes of acid rain is ..... A) Industrial burning of coal and other fossil fuels. B) Deforestation. C) Use of fertilizers in cultivation. D) Burning waste. Show Answer Correct Answer: A) Industrial burning of coal and other fossil fuels. 9. Common Pool Resource-Which one of the following policies would not encourage sustainable fishery management? A) Ecolabeling. B) A system of individual transferable quotas. C) Quotas on total fishery catch. D) An increase in bycatch allowances. E) Certification of sustainable fishery products. Show Answer Correct Answer: D) An increase in bycatch allowances. 10. Environment conservation is crucial because A) Resource extraction methods are harmful to the environment. B) It gives much media attention. C) Government gives much focus on that. D) By this we can love others. Show Answer Correct Answer: A) Resource extraction methods are harmful to the environment. 11. Material and energy cannot be created and cannot be destroyed, known as A) Fourth Law of Thermodynamics. B) Third Law of Thermodynamics. C) First Law of Thermodynamics. D) Second Law of Thermodynamics. Show Answer Correct Answer: C) First Law of Thermodynamics. 12. Common Pool Resource-The efficient price of a license fee is determined by the difference between ..... A) Average revenue and marginal cost. B) Total revenue and total cost. C) Total revenue and marginal cost. D) Average revenue and total cost. E) Marginal revenue and marginal cost. Show Answer Correct Answer: A) Average revenue and marginal cost. 13. For which of the following pollutants would a market mechanism be effective? A) Non-uniformly mixed regional pollutants. B) Non-uniformly mixed local pollutants. C) Uniformly mixed regional pollutants. D) Uniformly mixed local pollutants. Show Answer Correct Answer: C) Uniformly mixed regional pollutants. 14. Val and Jonathan are planning to start a small business. They heard that the government sometimes gives away cash or public resources to encourage an activity or lower a product's price. What is this called? A) Supply. B) Policy. C) Subsidy. D) Demand. Show Answer Correct Answer: C) Subsidy. 15. First line of defense to protect the resource is through A) Soil preservation. B) Water protection. C) Waste reduction. D) None. Show Answer Correct Answer: C) Waste reduction. 16. Jonathan and Conner are discussing about a situation where a factory's smoke pollution causes health issues for the nearby residents, but the factory does not bear any cost for these health issues. What is the concept that this situation represents, where a market does not reflect the full costs and benefits of actions? A) Green tax. B) Cost-benefit analysis. C) Market failure. D) Non-market value. Show Answer Correct Answer: C) Market failure. 17. Noise levels at construction sites can be controlled using proper construction planning and scheduling techniques. A) True. B) False. C) Both. D) None. Show Answer Correct Answer: A) True. 18. Which branch of the U.S. government is involved in interpreting environmental laws and hearing lawsuits regarding environmental issues? A) Judicial branch. B) Legislative branch. C) Executive branch. D) State governors. Show Answer Correct Answer: A) Judicial branch. 19. Which of the following does not represent the same curve? A) Private marginal benefit curve. B) Maximum willingness to pay curve. C) Private marginal cost curve. D) Demand curve. Show Answer Correct Answer: C) Private marginal cost curve. 20. When considering noise pollution, why is the marginal external cost (MEC) increasing in output? A) The law of diminishing returns. B) Damage of pollution increases more than proportional. C) Pollution increases more than proportional with output. D) None of above. Show Answer Correct Answer: B) Damage of pollution increases more than proportional. 21. Which of the following problems is most likely to prevent successful implementation of the EU's Greendeal? A) Free-rider effect. B) Free market environmentalism. C) Holdout effect. D) Holding effect. Show Answer Correct Answer: C) Holdout effect. 22. All the things that must be considered about the environment when doing a cost benefit analysis are called A) Externalities. B) Ecosystem benefits. C) Consumer preferences. D) Internal variables. Show Answer Correct Answer: A) Externalities. 23. Tragedy of the Commons is when ecosystems are A) Depleted because no one person owns them or cares for them. B) People share the resource they use in common. C) People band together to share resources. D) People share resources equally. Show Answer Correct Answer: A) Depleted because no one person owns them or cares for them. 24. What are the disadvantages of standard uniforms? A) Resources are wasted if the costs of reducing emissions differ from one another. B) Resources are utilized properly to reduce pollution. C) Pollution is very difficult to overcome. D) There are companies that reduce emissions and there are also those that do not reduce emissions. Show Answer Correct Answer: A) Resources are wasted if the costs of reducing emissions differ from one another. 25. A cost-benefit analysis is a(n) A) Study of the factors that influence that influence decisions of buyers and sellers. B) Economy in which the government decides what is made. C) Equilibrium between a product's supply and its demand. D) Comparison between what is sacrificed and gained by a specific action. Show Answer Correct Answer: D) Comparison between what is sacrificed and gained by a specific action. 26. The relationship between economic activities and the environment is known as science A) Environmental Economics. B) Economic Environment. C) Natural Resource Economics. D) All true. Show Answer Correct Answer: A) Environmental Economics. 27. The conventional/ neo-classical view is widely referred to as the 'triple bottom line', meaning that there are three pillars of sustainability. What are these? A) People, Profits and Planet. B) Society, Economy, Environment. C) Both of these. D) None of these. Show Answer Correct Answer: C) Both of these. 28. The Great Morass Wetland in St. Thomas has suddenly disappeared. As a result, the National Environmental Planning Agency has decided to put in place a wastewater treatment plant. Which of the following valuation methods applies to this scenario? A) Mitigation cost method. B) Damage cost avoided method. C) Replacement cost method. D) Travel cost method. Show Answer Correct Answer: C) Replacement cost method. 29. ETS-Which allocation method for emission allowances has a fairness concern? A) Output based allocation. B) Benchmark. C) Auctioning. D) Grandparenting. Show Answer Correct Answer: D) Grandparenting. 30. What do you call the tools and equipment needed to create a good or service? A) Capital Resources. B) Human Resources. C) Land Resources. D) Entrepreneurial Ability. Show Answer Correct Answer: A) Capital Resources. ← PreviousNext →Related QuizzesEconomics QuizzesFinance QuizzesEnvironmental Economics Quiz 1Environmental Economics Quiz 2Environmental Economics Quiz 3Environmental Economics Quiz 5Environmental Economics Quiz 6Environmental Economics Quiz 7 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books