Economic Development And The + Verified Test Bank Chapter 21

Chapter 21

Economic Development and the Environment

Multiple Choice Questions
 

1. Economic growth is measured by
A.  an increase in the aggregate level of output.
B.  an increase in per capita output.
C.  a set of technological, institutional and social transformations.
D.  All of the above.

 Difficulty: Moderate

 

2. Economic development is measured by
A. an increase in the aggregate level of output.
B. an increase in per capita output.
C. an increase in economic activity without any underlying change in the fundamental structure and institutions of a country.
D. All of the above.

Difficulty: Easy

 

3. Developing countries are mainly concerned with water and air pollution in their own countries. Pressing concernsinclude 
A. water supplies that are responsible for death and disease.
B. river waters that have become contaminated with heavy metals and toxic chemicals.
C. seepages from industrial sites and waste dumps that threaten ground water.
D. All of the above.

Difficulty: Easy.
 

4. Refer to the figure above. Curve A represents the trade-off between market goods and environmental quality in a developed country. Curve B represents the same in a less-developed country. In order for both firms to achieve the same level of marketed output (c₁), Country can attain ­­________ levels of environmental quality.
A. higher
B. lower
C. equivalent
D. indeterminate

Difficulty: Easy

5. Refer to the figure above. When emphasizing the trade-off depicted in the PPC graph above, the fact that the environmental goods and GDP can be _______ goods is ignored.
A. normal
B. substitute
C. complimentary
D. luxury

Difficulty: Easy

 

6. Community resilience is defined as the ability

A. of a community to re-build after a disaster.

B. to absorb financially displaced members of society.

C. to embrace an increased refugee population.

D. All of the above.

Difficulty: Easy

7.  Sustainability is defined as a practice that
A. shifts the PPC to the left.
B. relies on nonrenewable resources.
C. does not reduce the long-run productivity of a country’s natural resource assets on which income and development depend.
D. All of the above.

Difficulty: Easy.

8.  As peoples’ incomes ________, they are more likely to sacrifice for a/an ________ environmental quality.
A. increase; improvement in
B. decrease; improvement in
C. increase; deterioration in
D. None of the above.

Difficulty: Moderate

9.  Though relationships between income and environmental quality are not inevitable, there are some general trends that have been revealed. Studies show that as a country’s per capita income rises
A. exposure to CO₂ emissions decrease.
B. exposure to particulate solids wastes decrease.
C. exposure to particulates and sulfur dioxide (SO₂) first decrease and then increase.
D. access to safe water and adequate sanitation rise.

Difficulty: Moderate

10.  Though relationships between income and environmental quality are not inevitable, there are some general trends that have been revealed. Studies show that as a country’s per capita income rises
A. exposure to CO₂ emissions increase.
B. exposure to municipal solid wastes increase.
C. exposure to particulates and sulfur dioxide (SO₂) first increase and then decrease.
D. All of the above.

Difficulty: Moderate

11.  For many environmental problems, population exposure is likely
A. dependent upon technology choices that are adopted within a country.
B. dependent upon the preferences of the citizens residing in the country.
C. to decrease with economic development.
D. All of the above.

Difficulty: Easy

12. When developing environmental policy for developing economies, there is a critical need to

A. restrict energy use to renewable sources.
B. understand the benefits and costs of alternative policies.
C. consult the World Health Organization about the health effects of pollution.
D. maximize development initially because citizens will value environmental assets more once their income has increased.

Difficulty: Easy

13.  One of the issues of measuring benefits in developing countries is that the willingness to pay requires

A. the use of an estimated discount rate.
B. ability to pay.
C. understanding peoples’ tastes and preferences.
D. None of the above.

Difficulty: Easy

14. In the face of extensive poverty, willingness to pay measures may be _______.

A. small
B. large
C. immeasurable
D.  impractical

Difficulty: Easy

15.  People in developing countries, especially those with very low incomes, discount the future _________.

A. at an arbitrary rate
B. at a low rate
C. at a high rate
D. None of the above.

Difficulty: Easy

16. When a positive discount factor is used, the discounted value of long-run environmental damage contributes to _______.

A. inaccurate valuation of the future

B. lost productivity
C. maintaining intergenerational equity
D. differences in intergenerational equity

Difficulty: Easy

17. An example of a type of policy that creates distortions in local economies is government subsidies for pesticide use by farmers. The distortion effects include
A. heavy pesticide exposure for farm workers.
B. overuse of agricultural chemicals by farmers.
C. rapid development of immunity by targeted pests.
D. All of the above.

Difficulty: Easy

18. Open access resources promote a __________ situation.
A. pay as you use

B. pay when you can
C. use-it-or-lose-it
D. tax and trade

Difficulty: Easy

19. The lack of management of common-property externalities is often a property rights problem caused by the lack of __________ that assigns individual or small-group property rights.
A. an institution
B.  tax law
C.  a market
D. political pressure

Difficulty: Easy

20. In the simplest terms possible, the total impact of people on environmental resources can be expressed as
A. Total environmental impact= Environmental impact per person X Number of people.
B. Total Resource Base Reductions = Total Resource Base / Number of people.
C. Total environmental impact = Impact per person / Number of people.
D. Total Resource Base Reductions = Resources used per person X people per captia.

Difficulty: Easy

21. In order to achieve a decrease in environmental impact can be achieved, one must
A. reduce the size of the population.
B. reduce the environmental impact per person.
C. either A or B.
D. both A and B.

Difficulty: Moderate

22. Increasing incomes are almost always associated with 
A. lower municipal waste.
B.  lowered fertility rates.
C. lower carbon dioxide (CO₂) per capita.
D. decreased access to safe water.

Difficulty: Easy

23. In developing countries, ________ is/are the dominant trend in environmental policy.
A. command and control
B. incentives
C. cap and trade
D. emissions taxes

Difficulty: Easy

24.  In environmental policy, the term technology transfer refers to
A. the marketing of environmental technology from private companies to public entities.
B. the technology and carbon intensity differential between trading countries.
C. the transfer of revenue gained from technology transfers from private to public entities.
D. the transfer of skills and technology from developed to developing countries that allows for economic development with lower environmental impacts.

Difficulty: Easy

25. Some of the most egregious cases of environmental damage in developing countries are projects that had direct involvement from 
A. the United States.
B. the World Health Organization.
C. the North American Free Trade Agreement.
D. international aid organizations.

Difficulty: Easy

26. Payment for Environmental Services (PES) programs are
A. incentive programs that offer monetary payments to people who engage in environmental conservation activities.
B. command and control policies that pay participants for participation in reduction programs.
C. emissions tax programs that charge people for specific types of emissions.
D. technology standards programs that offer subsidies to people who buy specific technology that reduces their emissions.

Difficulty: Easy

27. Conditional Cash Transfers (CCTs) are
A. incentive programs that offer cash payments conditional on recipients engaging in socially productive activities.
B. command and control policies that pay participants for participation in emission reduction programs.
C. emissions tax programs that charge people for specific types of emissions.
D. technology standards programs that offer subsidies to people who buy specific technology that reduces their emissions.

Difficulty: Easy

28. Because developing countries typically have lower GDPs per capita than developed countries, it becomes especially important for their environmental policies to be cost-effective. This statement would support
A. emissions standards.
B. technology based emission standards.
C. command and control policies.
D. incentive based policies.

Difficulty: Easy

29. Sustainable practices focus on keeping ___________ capital productive.
A. human
B.  physical
C. institutional
D. all of the above

Difficulty: Easy

30. Developed countries should focus on _________ in supporting developing countries environmental initiatives.
A. population control
B. technology transfer
C. international mandates
D. trade restrictions

Difficulty: Easy

31. Climate change impacts on low-lying, coastal areas include

A. population displacement

B. people moving inland

C. decrease in fisheries

D. all of above

32. National Adaption Plans (NAPs) set by the Paris Agreement identify

A. steps to reduce carbon emissions in developing countries

B. steps to reduce impact of climate change in developing countries

C. identifies funding goals for developing countries to attain

D. provides funding for developing countries to develop their own technology

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 less-developed 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