Reference no: EM132790337
QUESTION 1.
Which of the following would economists label as an example of the "tragedy of the commons?"
The use of pesticides on private farm land.
The use of growth hormone on cattle.
The over-fishing of the oceans.
The neighbor who does not mow his yard.
QUESTION 2
Which of the following would economists label as an example of the "tragedy of the commons?"
The over grazing of private land by ranchers.
The over grazing of public land by ranchers.
The disregard for health warnings on home use pesticide sprays.
The loss of value that homeowners incur when they fail to maintain their lawns.
QUESTION 3
Which of the following environmental problems is among the most easily solved?
waste water treatment
a nation's air pollution issues
a nation's coastal water pollution issues
the world's global warming issues
QUESTION 4
Which of the following environmental problems is among the least easily solved?
waste water treatment
a nation's air pollution issues
a nation's coastal water pollution issues
the world's global warming issues
QUESTION 5
Which issue type of environmental problem is least easily solved?
One that is entirely confined to a single property owned by an individual.
One that is entirely confined to a single community.
One that is entirely confined to a single country.
One that is global.
QUESTION 6
The wood in a forest would be considered a
limited natural resource.
renewable natural resource.
sequestered natural resource.
sustainable natural resource.
QUESTION 7
The optimal resource use for a limited natural resource very much depends on the
discount rate you apply to the use of future limited natural resources.
place from where it is harvested.
incomes of those who will benefit from its use.
relative cost of extracting that resource relative to a substitute.
QUESTION 8
The fish in the ocean would be considered a
limited natural resource.
renewable natural resource.
sequestered natural resource.
sustainable natural resource.
QUESTION 9
The economic explanation that is given by Nobel laureate economist Ronald Coase for why community property is polluted more often than private property is that
damaging community property indirectly affects individuals' wealth whereas damaging private property directly affects their wealth.
damaging private property indirectly affects individuals' wealth whereas damaging community property directly affects their wealth.
people are not made aware of their actions toward community property.
people ignore what is not right in front of them.
QUESTION 10
The concept of "clean enough" to an economist means the
perfect state of cleanliness.
state of cleanliness where the average cost of cleaning more equals the average benefit of cleaning more.
state of cleanliness where the marginal cost of cleaning equals the marginal benefit of cleaning.
state of cleanliness where the total cost of cleaning equals the total benefit of cleaning.
QUESTION 11
The average global temperature rose
1 degree F in the last 100 years.
3-5 degrees F in the last 100 years.
15 degrees F in the last 100 years.
3-5 degrees in the last 10 years.
QUESTION 12
The Environmental Protection Agency was created in
the 1930s.
the 1960s.
the 1980s.
the 1990s.
QUESTION 13
Sustainability requires that
renewable natural resources be used only at a rate at which they can be replaced.
limited natural resources be used as sparingly as possible.
gamesmanship.
both gamesmanship and renewable natural resources be used only at a rate at which they can be replaced.
QUESTION 14
Suppose an ardent environmentalist sought to preserve limited natural resources for future generations, she would, more than likely be arguing that oil and gas companies use an inappropriately
high discount rate when considering optimal resource use.
low discount rate when considering optimal resource use.
decreasing discount rate when considering optimal resource use.
flat discount rate when considering optimal resource use.
QUESTION 15
Setting taxes equal to marginal external costs are modeled by creating a new social cost curve that is
lower than the original supply curve.
higher than the original supply curve.
lower than the original demand curve.
higher than the original demand curve.
QUESTION 16
Pollution is an example of a
negative externality.
positive externality.
neutral externality.
golden externality.
QUESTION 17
Nobel laureate economist Ronald Coase suggests that pollution problems could be solved if
people used a community spirit rather than a self-interested motive when making decisions.
community property were owned by self-interested parties.
community property were made the norm.
people simply thought about the costs of their actions.
QUESTION 18
Natural gas would be considered a
limited natural resource.
renewable natural resource.
sequestered natural resource.
sustainable natural resource.
QUESTION 19
Iron ore would be considered a
limited natural resource.
renewable natural resource.
sequestered natural resource.
sustainable natural resource.
QUESTION 20
If logging companies are allowed to harvest on public lands, economists use present value analysis to suggest that logging companies will
harvest all they can as quickly as they can.
leave the young trees for later.
harvest only the prettiest trees.
leave only the taller trees.
UESTION 21
Global environmental problems are less easily solved than those confined to a single country because
a single country has no incentive to solve global problems.
there is no worldwide interest in solving global problems.
there is no effective enforcement mechanism available for solving global problems.
all of the options are correct.
tragedy of the commons?"
QUESTION 22
External costs are modeled by creating a new social cost curve that is
lower than the original supply curve.
higher than the original supply curve.
lower than the original demand curve.
higher than the original demand curve.
QUESTION 23
Economists see the greenhouse effect as
having both negative and positive economic impacts.
having only positive economic consequences.
having only negative economic consequences.
having no economic consequences.
QUESTION 24
Economists refer to the problem that exists when public property is treated poorly because it is in no one's private interest to protect it as the
tragedy of capitalism.
tragedy of the commons.
Achilles' heal of socialism.
mistake of zoning.
QUESTION 25
Economists generally believe that
free market activity cannot coexist with a clean environment.
regulation is the only effective way to reduce pollution.
private incentives can be used to motivate individuals to act "green".
Both free market activity cannot coexist with a clean environment and regulation is the only effective way to reduce pollution.
QUESTION 26
Economists assume that late in the process of cleaning a dirty environment there are relatively
high benefit-low cost things that could and should be saved for last.
high benefit-high cost things that could and should be saved for last.
low benefit-low cost things that could and should be saved for last.
low benefit-high cost things that could and should be saved for last.
QUESTION 27
Economists assume that early in the process of cleaning a dirty environment there are relatively
high benefit-low cost things that can and should be done first.
high benefit-high cost things that can and should be done first.
low benefit-low cost things that can and should be done first.
low benefit-high cost things that can and should be done first.
QUESTION 28
Crude oil would be considered a
limited natural resource.
renewable natural resource.
sequestered natural resource.
sustainable natural resource.
QUESTION 29
Carbon monoxide in the air is _____ than its 1975 level.
25% less
3% less
3% more
25% more
QUESTION 30
By most standards of clean air and water published from government sources, the environment is ______ than it was in 1975.
much cleaner (more than 25% by most measures)
much dirtier (more than 25% by most measures)
somewhat dirtier (1-5% by most measures)
somewhat clearer (1-5% by most measures)
QUESTION 31
After accounting for externalities with a social cost curve, the new equilibrium would be such that equilibrium price is
lower than before and equilibrium quantity is higher than before.
higher than before and equilibrium quantity is higher than before.
lower than before and equilibrium quantity is lower than before.
higher than before and equilibrium quantity is lower than before.
QUESTION 32
According to Nobel laureate economist Ronald Coase, if a person lives near a neighborhood park and a storm uproots several trees around the neighborhood, people will naturally
work to repair their own private damage first.
pay for someone to work on their own private property and pitch in to help on the park.
work on the public park first.
ignore the entire problem.
QUESTION 33
A tax on a polluting activity could internalize the externality if it were set equal to the
average cost of the pollution.
marginal cost of the pollution.
total cost of the pollution.
moral cost of the pollution
QUESTION 34
A tax on a good whose production causes pollution will
raise the equilibrium price and lower the equilibrium quantity.
lower the equilibrium price and lower the equilibrium quantity.
raise the equilibrium price and raise the equilibrium quantity.
ower the equilibrium price and raise the equilibrium quantity.
QUESTION 35
A key element in an economist's analysis of whether a company is making rational decisions with regard to their exploitation of a natural resource is the notion of
sentimental value.
present value.
ignored value.
created value.