Environmental Economics 8th Edition Field Test Bank
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Chapter 01 - What Is Environmental Economics?
Chapter 01 What Is Environmental Economics?
Multiple Choice Questions 1. A(n) ________ in the economic world is something that leads people to channel their production and consumption efforts in a specific direction. A. moral obligation B. economic incentive C. property right D. ethical motive Difficulty: Easy.
2. Any economic system will produce destructive environmental impacts if the ________ within the system are not structured to avoid them. A. ethics B. prices C. property rights D. incentives Difficulty: Easy.
3. An economy that has the ability to allow the level of people's well-being to rise or at least remain constant over time is ________. A. sustainable B. equitable C. self-perpetuating D. efficient Difficulty: Easy
4. People make the decision to pollute or not based on ________. A. incentives B. social institutions C. economic institutions D. all of the above Difficulty: Easy
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Chapter 01 - What Is Environmental Economics?
5. _______ organizations are more likely to respond to incentives that encourage pollution. A. For profit B. Not for profit C. Government D. All organizations are equally likely polluters Difficulty: Easy
6. Positive economics is the study of _____________. A. what will be B. what is C. beneficial economic outcomes D. economic outcomes that are most likely Difficulty: Easy.
7. ___________ would include a study of what the economic penalties for water pollution should be. A. Normative economics B. Legal economics C. Judicial economics D. Market economics Difficulty: Easy.
8. _______ organizations are more likely to respond to incentives that discourage pollution. A. For profit B. Not for profit C. Government D. All of the above Difficulty: Easy.
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Chapter 01 - What Is Environmental Economics?
9. The economic approach to issues of the environment can be directly contrasted with the ________, while the former relies on analytic models and incentives to explain environmental quality the latter interprets environmental degradation as a result of _______. A. analytic approach; negative externality B. direct approach; indirect policy C. moral approach; unethical behavior D. positive approach; opportunity cost Difficulty: Moderate
10. Pollution control costs today probably equate to A. 1% to 2% of US GDP. B. 20-25% of the US GDP. C. the state of Iowa’s domestic production.. D. the amount spent on US healthcare.. Difficulty: Easy
11. The technical name for the PAYT (pay as you throw) waste disposal program implemented in southern Maine communities, that charged a set price for each bag of trash is ____________. A. municipal incentive B. ineffective policy C. flat fee D. unit pricing Difficulty: Easy.
12. Command and control policies refer to A. communist government approaches to pollution control. B. regulations and laws that directly/indirectly specify pollution control technology. C. tax and spend pollution policy. D. regulation of pollution by the US military. Difficulty: Easy
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Chapter 01 - What Is Environmental Economics?
13. Examples of incentive based programs include all but ______________. A. emissions charges B. emissions taxes C. command and control programs D. market-based trading programs Difficulty: Moderate
14. Perverse incentives__________________. A. are financial incentives aimed at minors B. are incentives that only affect those who do not pollute C. are flat fee incentives that disproportionately affect the poor D. work against the overall objectives of a policy Difficulty: Easy.
15. Which of the following environmental policy issues would be considered a macroeconomic concern? A. Potential tradeoffs between environmental protection and GDP growth B. Wage rates in envirotech industries C. Federal policy that regulates the oil industry D. Federal policy that regulates the energy industry Difficulty: Moderate.
16. Environmental policies have triggered all of the following macroeconomic concerns except: A. stricter environmental policies retard economic growth B. stricter environmental policies are associated with socialism C. stricter environmental policies reduce employment D. higher economic growth rates are associated with environmental degradation Difficulty: Moderate
17. While the private sector may judge the effectiveness of environmental policy through the analysis of its effect on their_____________, the public sector judges the impact of environmental policy through __________________ . A. employees; elections B. benefit-cost analysis; non-profit statement C. advertising; congress D. profit-and-loss statement; benefit-cost analysis Difficulty: Moderate
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Chapter 05 - The Economics of Environmental Quality
19. For a single, non-accumulative pollutant, when no threshold exists A. the marginal damage function begins below the origin. B. release of the pollutant into the environment is safe at very low levels. C. the marginal damage function begins at the origin. D. the very first unit of emissions has an impact on the environment. Difficulty: Easy
20. The height of the marginal damage curve at a particular level of emissions shows A. the amount of accumulated damaging material in the ambient environment. B. the concentration of damaging material in the ambient environment. C. the number of people damaged by the emission. D. how much total damages change if there is a small change in the quantity of emissions. Difficulty: Easy
21. The least costly way of reducing emissions for a group of polluting sources is depicted by A. adding individual marginal abatement cost curves together to represent one curve B. the aggregate marginal abatement cost function of the group of sources C. a single marginal abatement cost curve that accumulates curves for each individual source D. all of the above Difficulty: Easy
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Chapter 05 - The Economics of Environmental Quality
22. Which Figure above represents a greater total abatement cost than total damage cost at the socially optimal point of emissions? A. Figure (a) B. Figure (b) C. Figure (c) D. Figures (a), (b) and (c) Difficulty: Easy
23. Which Figure above represents a marginal damages curve with a threshold? A. Figure (a) B. Figure (b) C. Figure (c) D. Figures (a), (b) and (c) Difficulty: Easy
24. Which Figure above represents a social optimum at e*? A. Figure (a) B. Figure (b) C. Figure (c) D. Figures (a), (b) and (c) Difficulty: Easy
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Chapter 05 - The Economics of Environmental Quality
25. Which of the above Figures reveals a marginal damage curve that displays a threshold? A. Figure (a) B. Figure (b) C. Neither Figure (a) nor (b) D. Both Figures (a) and (b) Difficulty: Easy
26. In Figure (b), the change in abatement costs represented by the change in the socially optimal emission level from e1* to e2* can be described as __________. A. (a+b)–(b+c) B. (a-c) C. (b+c) D. both A. and B Difficulty: Easy
27. Which of the above figures shows a shift in the marginal abatement cost function? A. Figure (a) B. Figure (b) C. Neither Figure (a) nor (b) Both Figures (a) and (b) Difficulty: Easy
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Chapter 05 - The Economics of Environmental Quality
28. In Figure (a) above, we can see that as the marginal damage curve rises, representing increased damages for every unit of emissions, the socially optimal level of emissions ___________. A. remains unchanged B. increases C. decreases D. is indeterminate Difficulty: Easy
29. Review the figure above. When enforcement costs are considered, abatement costs _______ and the socially optimal level of emissions ______________ . A. increase; increases B. increase; decreases C. decrease; increases D. decrease; decreases Difficulty: Easy
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Chapter 15 – Federal Air Pollution-Control Policy
34. According to some principles of behavioral economics, the “energy-efficiency gap” implies that A. consumers are more likely to favor trucks over cars B. consumers often will not buy fuel-efficient vehicles that will save them money in the long run. C. consumers react quickly to perceived mileage differences among cars D. consumers have no way of knowing about mileage differences among cars
35. The primary way the U.S. is addressing the climate impact of vehicles is through A. the national CAFE programs B. laws requiring cleaner cars C. laws to lower average speed limits D. laws to restrict the purchase of trucks
36. The first successful cap and trade program in the U.S. was A. the program to reduce SO2 emissions B. the program to reduce CO2 emissions C. the program to reduce particulate matter emissions D. the program to reduce volatile organic compound emissions
37. The CAFE program is a requirement that A. people live within five miles of a coffee shop B. all cars achieve a certain mileage per gallon C. cars produced by each manufacturer on average attain a certain mileage D. only trucks achieve a certain mileage per gallon
38. The primary means for controlling major industrial air pollutants in the U.S. has been A. prohibition of certain airborne pollutants B. a moral approach to reduce airborne emissions C. emissions charges (taxes) D. technology-based emissions standards
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Chapter 15 – Federal Air Pollution-Control Policy
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Chapter 16 – Federal Policy on Toxic and Hazardous Substances
Chapter 16 Federal Policy on Toxic and Hazardous Substances Multiple Choice Questions 1. Trying to reduce the amounts of hazardous material that need disposal by either recycling residuals, or by shifting technologies and operations so that the amount of residuals generated by firms is reduced is known as ________. A. waste reduction B. recycling C. chemical treatment D. CERCLA
Difficulty: Easy.
2. Hazardous and toxic materials have characteristics that present unique challenges for monitoring and control, such as A. they are found everywhere in the modern economy. B. the sheer number of them leads to difficulty in being informed about the levels of danger. C. the quantity used can be very small, leading to difficulty in monitoring. D. all of the above.
Difficulty: Easy.
3. The policy environment governing hazardous and toxic substances is A. the sole responsibility of the EPA. B. subject to federal laws, state laws, and local public agency advocacy and public opinion. C. straightforward with a long and consistent history and precedent. D. not overseen by the EPA because most toxic substances are not released to the natural environment.
Difficulty: Easy.
4. Rachel Carson’s book, Silent Spring (1962), documented ecosystem damage caused by A. the experiences of Love Canal, where homes were exposed to hazardous waste. B. a chemical spill in the Elk River in Charleston, West Virginia. C. the chemical spill in Bhopal, India. D. DDT, a popular pesticide.
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Chapter 16 – Federal Policy on Toxic and Hazardous Substances
Difficulty: Easy
5. If acceptable levels of exposure to chemicals were determined by ‘balancing’, regulators would attempt to A. balance the demand for chemicals with the supply of chemicals. B. balance the price of chemicals with the cost of producing chemicals. C. balance the costs of controlling the chemicals with the damages that the chemicals caused. D. all of the above. Difficulty: Easy
Cost-Benefit Balancing in Regulating Exposure to a Chemical
Curve A
Curve B
Axis B
Exposure to chemical
6. Refer to the figure above. In the graph above, Curve A would be labeled A. Marginal Control Costs (of reducing the levels of exposure). B. Marginal Benefits (of higher or lower health risks when exposure changes). C. Marginal Demand Curve (for reduced health risks). D. Marginal Willingness to Pay Curve (for reduced health risks). Difficulty: Moderate
7. Refer to the figure above. In the graph above, Curve B would be labeled A. Marginal Control Costs (of reducing the levels of exposure). B. Marginal Benefits (of higher or lower health risks when exposure changes). C. Marginal Demand Curve (for reduced health risks). D. Marginal Willingness to Pay Curve (for reduced health risks). Difficulty: Moderate
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Chapter 21 – Economic Development and the Environment
33. For developing countries, the Paris Agreement promotes A. green technology transfers B. building country resiliency C. sharing solutions for global warming D. all of above
34. Improving environmental quality will cause the production possibilities curve for lessdeveloped countries to A. shift upward B. shift downward C. not change market output D. become convex to the origin
35. A practice is sustainable if A. only renewable resources are used B. irreversible reductions in resources are replenished C. all resources are used slowly D. the long-run productivity of resources is not reduced 36. The total environmental impact of a country is equal to the size of the population times A. the amount of CO2 emitted per person B. the environmental impact per person C. the level of income per person in that country D. the number of environmental treaties entered into by that country
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