Reference no: EM133302236

Question 1.

Why are taxes preferred by government and quotas preferred by industry to support sustainability and environmental issues?

a) Governments tend to believe that taxes provide greater incentives to promote environmental and sustainability issues, while industry believes that quotas are a greater incentive.

b) Governments prefer having the revenue from taxes while businesses prefer having the increased revenue from the sale of goods and services.

c) Governments find it much easier and more efficient to impose taxes than monitor quotas; business and industries never like to pay taxes, so prefer any other option.

d) The premise of this question is false. Actually. governments prefer quotas and business/industry prefers taxes to promote environmental and sustainability issues

Question 2

Which of the following is an example of a negative externality?

a) A government increases the property tax rates on all property holders, including senior citizens and low income, to improve the roads and highways in its jurisdiction.

b) A company creates a park for its employees and allows other members of the community to use it for a fee.

c) A company dumps residue into the water at its facility which makes people in the community sick.

d) A government imposes pollution standards restricting the amount of contaminants that can be released into the air.

Question 3

An increase in interest rates tends to decrease the incentive to initiate environmentally friendly activities because

a) This statement is not true because there is no relationship between implementing environmentally friendly activities and interest rates.

b) Higher interest rates increase the cost of borrowing money to make environmentally friendly investments such as more energy-efficient heat and air conditioning units or energy-efficient technology upgrades.

c) Higher interest rates automatically decrease profits for business and industry, which makes it impossible for companies to initiate any new practices to promote the environment.

d) This statement is not true because higher interest rates create greater incentives for business and industry to invest in environmentally friendly activities that will reduce the overall cost of doing business

Question 4

How does the Coase Theorem apply to sustainability issues?

a) It says government can impose environmentally friendly actions as needed, regardless of who owns the land, for the benefit of all.

b) It provides a win-win situation for landowners because they negotiate with the government to use tax dollars to implement environmentally friendly actions on their personal property (at no cost to the landowners) and the landowners then have the benefits of those actions.

c) It provides a win-win situation for landowners who agree to make changes, pay the cost of those changes, and share the benefits for of those changes.

d) It explains why legal actions are needed for individual property owners to make changes in their sustainability practices.

Question 15

Which of the following must exist in order for cooperative property rights to be successful?

a) There must be well-defined property rights, group membership and rules for usage.

b) The property must be government owned with strong punishment for people who violate the rules.

c) There must be well-defined property rights with one person or entity to strictly enforce those rights.

d) The property must be group owned but open to the public for use.

Question 16

The economic concept "Tragedy of Commons" is best described as

a) A situation where individual users, who have open access to a resource without formal rules governing their access and use, act in the best interest and common good of all users - leading to the depletion of the resource.

b) A situation where individual users, who have open access to a resource without formal rules governing their access and use, act independently according to their own self-interest and contrary to the common good of all users - without the depletion of the resource.

c) A situation where individual users, who have open access to a resource without formal rules governing their access and use, act in the best interest and common good of all users - without the depletion of the resource.

d) A situation where individual users, who have open access to a resource without formal rules governing their access and use, act independently according to their own self-interest and contrary to the common good of all users - leading to the depletion of the resource

Question 17

Open access resources differ from public domain resources in that

a) Open access resources require payment to use them; public domain resources require no payment.

b) Open access resources owners retain their copyright privileges; public domain resources have no copyright privileges.

c) Open access resource owners have no copyright privileges while public domain resources do.

d) Open access resource owners can limit who has access to their materials/resources while public domain resources cannot be limited.

Question 18

Which of the following is NOT an advantage of common property rights over private ownership?

a) Incentives for over-extraction

b) Geographical risk spreading

c) Economies of scale

d) Potential negative equity effects

Question 19

The concept of "health" can is complex and can be many things to many people. What is the definition of health established by the World Health Organization and used in your textbook and in class discussions?

a) Health is a condition where individuals have regular, sustained access to quality care and nutrition

b) Health is a condition where individuals are free from disease and able to live a good quality of life.

c) Health is a physical condition. with little regard for an individual's mental or social well-being.

d) Health is a condition of total physical, mental and social well-being - not just the absence of disease.

Question 20

What is the general consensus about the relationship between geographical locations and diseases?

a) Geography has little, if any, relevance to the discussion on physical health - but has a much greater impact on issues related to mental health and social well-being.

b) There is a strong correlation between geography and diseases, but little, if any. relationship on mental health and social well-being.

c) Injustices in politics, social standing, and the overall economy are more prevalent in tropical countries which creates greater health care issues for all citizens of those countries.

d) Diseases such a HIV/AIDS, malaria and tuberculosis seem to be more prevalent in countries closer to the equator, which creates greater health care concerns and greater health care needs for developing countries in the tropical climates.