Chapter.2 Test Bank Answers The Economy And The Environment

Chapter 02

The Economy and the Environment

Multiple Choice Questions
 

 1. The trade-off that exists between harvesting as much as possible of a renewable resource today versus waiting for the future exemplifies the ________ of many natural resource management issues. 
A. sustainability
B. intertemporal dimension
C. short-run impact
D. efficiency

 
Difficulty: Easy

 

2. When a new production technology is invented that results in production of smaller amounts of residuals per unit of output produced, this is called reducing the ________. 
A. damages from production
B. intensity of pollution
C. residuals from production
D. residuals intensity of production

Difficulty: Easy

 

3. The residuals from production can be reduced by ________. 
A. shifting the composition of output towards low-residual items
B. preventing pollution by reducing the energy inputs required to produce each unit of output
C. reducing the residuals intensity of production
D. all of the choices are correct

 
Difficulty: Moderate 

4. An accidental oil spill is an example of a(n) ________ emission while municipal treated wastewater is an example of a(n) ________ emission. 
A. continuous; episodic
B. global; local
C. point source; nonpoint source
D. episodic; continuous

 Difficulty: Easy

5. The study of nature in its role as a provider of raw materials is called ________. 
A. natural resource economics
B. natural economics
C. environmental economics
D. all of the choices are correct

Difficulty: Easy

6.  ________ economics is an example of a subdivision of natural resource economics. 
A. Agricultural
B. Energy
C. Mineral
D. All of the choices are correct

 
Difficulty: Moderate 

 7. Nonrenewable resources are those for which there is no process of ________. 
A. substitution
B. replenishment
C. sustainability
D. assimilation

 
Difficulty: Easy

 8. Both renewable and nonrenewable resources have ________ trade-offs. 
A. objectivity
B. intertemporal
C. relevance
D. stock

 
Difficulty: Easy
9.  One of the theoretical ideas of natural resource economics is that the earth’s ___________ is a natural resource under threat of depletion. 
A. sun
B. population
C. sustainability
D. assimilative capacity

Difficulty: Easy

10. Although the dividing line between the two is blurring generally speaking, _______ is concerned with resource extraction and __________ is concerned with environmental degradation. 
A. production economics; consumption economics
B. environmental economics; natural resource economics
C. natural resource economics; environmental economics
D. consumption economics; production economics

Difficulty: Easy

11. In the figure above, (a) represents ____________. 
A. the extraction of resources from nature
B. natural resource economics
C. the consumption of goods and services
D. the role of government

Difficulty: Easy

 12. In the long run, residuals discharged by producers plus residuals discharged by consumers must be equal to the materials and energy extracted from the natural environment. The fundamental balance equation states that this is also equal to the _________________.
A. output of goods and services minus consumer recyclables
B. output of goods and services plus production residuals minus recyclables
C. output of residuals minus consumer recyclables plus producer surplus
D. benefits plus costs

 
Difficulty: Moderate

13. According to the fundamental balance equation, how can M, raw materials and energy extracted from the environment, be reduced? 
A. Reduce G, the amount of goods produced
B. Reduce R_p, residuals from producers
C. Increase (R^r_p + R^r_c), recyclables from both consumers and producers
D. All of the above are a method of reducing M

Difficulty: Moderate

14. In the figure above, the curve in panel (a) represents ____________. 
A. a production possibilities curve
B. a trade-off between the production of market goods and environmental quality
C. combinations of outcomes given a fixed endowment and technology
D. all of the above

Difficulty: Easy

15. In the figure above, panel (b) represents __________________.

A. intertemporal linkage between production decisions today and production ability tomorrow
B. a change in technology allowing for increased production
C. the inevitable consequences of air pollution
D. the inevitable consequences of improved air quality

Difficulty: Easy

16. ___________ refers to the quantity of pollutants in the environment. 
A. Source
B. Effluent
C. (R^r_p + R^r_c)
D. Ambient quality

Difficulty: Easy

17.  _____________ is the common term for negative impacts produced by environmental pollution on people in the form of health effects and visual degradation as well as negative impacts on the ecosystem.
A. Disruption
B. Damages
C. Effluent
D. Emissions

 
Difficulty: Easy

18. Although often used interchangeably, _______ broadly describes residuals that are placed in the environment and __________ is typically used to describe residuals placed in water. 
A. pollutant; effluent
B. effluent; emissions
C. emissions; effluent
D. pollutant; emission

Difficulty: Easy

19.  ____________ is an environmental media. 
A. Water
B. Land
C. Air
D. all of the above

Difficulty: Easy

20.  For a given amount of residuals, when we reduce the amount that is emitted into one environmental media, ___________________.
A. the ambient quality of all surrounding media increases
B. the amounts going into other media must increase
C. production of goods and services must decrease
D. it is impossible to specifically state what happens to other environmental media

 
Difficulty: Moderate

21. When emissions are mixed and not flowing from a single source, the problem of enforcement to maintain ambient quality is ______________. 
A. impossible
B. straightforward
C. much more complex
D. all of the above

Difficulty: Easy

22. A living resource can be non-renewable. 
A. false; all living resources are renewable
B. true; if the living resource is rare
C. true; if the rate of harvest exceeds the growth rate of the resource’s stock
D. false; only non-living resources are non-renewable

Difficulty: Easy

23.  Continued extraction of a non-renewable resource can be sustainable over time if managed properly. 
A. False; all non-renewable resources have a 5 year limit for extraction.
B. True; by definition non-renewable resources will never deplete.
C. True; with continued increases in technology non-renewable resources can last indefinitely.
D. False; non-renewable resources will eventually deplete.

Difficulty: Easy

24. A classic example of a non-cumulative pollutant is _____________.

A. loud music
B. acid rain
C. methane gas
D. mercury

Difficulty: Easy

25.  Estimating damages from cumulative pollutants is complicated because
A. there is a lack of cause and effect associated with the current emissions and total damages.
B. the intertemporal dimension makes it more difficult to focus on the damages associated with today’s emissions.
C. people typically discount the effects of future damage.
D. all of the above.

Difficulty: Moderate

26. Point-source pollutants
A. are known for causing greater environmental damages.
B. typically have international damage components
C. have a well-defined point of discharge.
D. are typically more difficult to trace to the source of pollution.

Difficulty: Easy

27.  It is more difficult to develop and administer control policies for _________ than it is for _____________. 
A. local pollutants; regional and global pollutants
B. air pollution; water pollution
C. point source pollutants; non-point source pollutants
D. non-point source pollutants; point source pollutants

Difficulty: Easy

28.  An example of environmental damage that is not related to emissions is ___________.
A. strip mining
B.  logging
C. the conversion of land to housing
D. all of the above

 
Difficulty: Easy

29. The policy challenge for continuous emissions is to manage ___________.
A. the probability of accidental discharges
B. people who frequently cause accidents
C. the rate of the discharges
D. the likelihood that continuous discharges are damaging

Difficulty: Easy

30. The policy challenge for episodic emissions is to manage ____________.

A. the probability of accidental discharges
B. the likelihood that continuous discharges are damaging
C. people who frequently cause accidents
D. air pollution in developing nations

Difficulty: Easy

31. Using a green Gross Domestic Product measure, an increase in pollution would

A. increase green GDP

B. decrease green GDP

C. not be included in green GDP

D. gives the same green GDP value as traditional GDP

32. Using a green Gross Domestic Product measure, an increase in spending on solar panels would

A. increase green GDP

B. decrease green GDP

C. not be included in green GDP

D. give the same green GDP value as traditional GDP

33. In a PPC figure sustainability is illustrated when

A. the PPC does not shift toward the origin

B. the economy reduces market goods and increases environmental quality

C. the economy reduced environmental quality and increases market goods

D. the PPC shifts toward the origin

34. Sustainability

A. gives equivalent emphasis to the short run and the long run

B. gives the short run greater emphasis than the long run

C. gives the long run greater emphasis than the short run

D. is not concerned about intertemporal decisions

35. Risk management

A. examines the likelihood or uncertainty of accidents

B. examines the liability of accidents

C. examines the technical failures of accidents

D. examines the balance sheets of accidents