Deck 2: The Economy and the Environment

Question 1

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

Answer 1

C

Question 2

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

Answer 2

B

Question 3

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

Answer 3

D

Question 4

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

Question 5

___________ refers to the quantity of pollutants in the environment.

A) Source
B) Effluent
C) (R^r_p + R^r_c)
D) Ambient quality

Question 6

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

Question 7

____________ is an environmental media.

A) Water
B) Land
C) Air
D) all of the above

Question 8

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

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

Question 9

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

Question 10

________ economics is an example of a subdivision of natural resource economics.

A) Agricultural
B) Energy
C) Mineral
D) All of the choices are correct

Question 11

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

Question 12

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.

Question 13

_____________ 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

Question 14

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

Question 15

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

Question 16

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

Question 17

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.

Question 18

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

Question 19

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

Question 20

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

Question 21

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

Question 22

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

Question 23

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

Question 24

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

Question 25

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

Question 26

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

Question 27

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.

Question 28

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

Question 29

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

Question 30

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