Deck 2: Economics, Politics, and Public Policy

Question 1

Which of the following most accurately indicates the recent changes that have occurred in China? As the Chinese economy has grown,

A)industrial pollution and poverty have increased while literacy and public health have declined.
B)the use of coal and electricity have increased while social mobility and literacy have declined.
C)literacy and public health have improved while industrial pollution and poverty have declined.
D)industrial pollution and literacy have increased while poverty and public health have declined.

Answer 1

industrial pollution and literacy have increased while poverty and public health have declined.

Question 2

We would expect that in a community with mounting air and water pollution problems,the

A)economy of the region would decline.
B)unemployment rates would drop.
C)health care would become less important.
D)population would increase.

Answer 2

economy of the region would decline.

Question 3

In general,problems caused by economic activities are

A)characteristic of small populations.
B)usually temporary.
C)addressed by laws and public policies.
D)not environmental problems.

Answer 3

addressed by laws and public policies.

Question 4

In general,centrally planned economies are run to promote the

A)interests of society,while free-market economies depend on the self-interests of individuals.
B)prosperity of all countries,while free-market economies promote the particular interests of a society.
C)self-interests of individuals,while free-market economies promote the interests of governments.
D)health of the environment,while free-market economies sacrifice sustainability.

Question 5

The best hope for the future global economy and environmental policy depends upon

A)sustainability.
B)economic growth.
C)consumption.
D)productivity.

Question 6

In comparing green to brown economies,

A)green economies will embrace technologies that reduce pollutants and increase efficiency.
B)brown economies will favor sustainable systems and reverse damage to ecosystem services.
C)both will continue with the race to develop more and more fossil fuel resources.
D)green economies will stress rapid growth,while brown economies will stress human well-being.

Question 7

Rising per capita income is associated with

A)decreasing needs for recycling.
B)cleaner air and safer water.
C)increased risks of respiratory disease.
D)increased frequency of water-borne diseases.

Question 8

If current energy consumption trends continue and the per capita income of the world increased dramatically,we would expect that

A)global climate change will be a greater problem.
B)literacy levels to decease.
C)respiratory diseases in cities will increase.
D)land and labor will no longer be economic factors.

Question 9

Economic growth in China has led to extensive air and water pollution because of

A)the lack of government regulations addressing pollution.
B)inadequately enforced environmental protection policies.
C)the lack of concern from the general public.
D)difficulties connecting environmental pollution to disease.

Question 10

In the classical view of economic activity,households

A)are paid for goods and services.
B)pay for most of the labor.
C)consume goods and services.
D)provide most of the products.

Question 11

The recent rise of the Chinese economy is associated with

A)the adoption of rigid centralized planning.
B)the elimination of economic systems.
C)the adoption of economic policies widespread in the former Soviet Union.
D)a switch to free-market policies.

Question 12

In response to environmental problems,the Chinese government has

A)increasingly relied upon local,non-governmental groups to monitor and respond.
B)simply agreed that these are the costs associated with economic prosperity.
C)insisted on centralized government control and removed power from local governments.
D)refused to recognize any long-term problems associated with air and water pollution.

Question 13

Centrally planned and free-market economies both

A)function best without government regulations.
B)rely upon the self-interests of individuals.
C)represent ideals not found in pure form in any country.
D)depend upon free access to the market.

Question 14

In a free-market society,

A)the needs of the poor are best met by the interests of business.
B)the interests of the poor,labor and business are the same.
C)governments ensure the free flow of goods and services in international trade.
D)the needs of the poor are often not met by business interests but by government programs.

Question 15

In the classical view of economic activity in this figure,we expect businesses to prosper when

A)labor costs are low and household incomes rise.
B)demand for goods and services decline.
C)labor is in short supply and consumption is declining.
D)the value of land and resources increase.

Question 16

Which of the following is least associated with economics?

A)A miner pans for gold in the mountains of California.
B)An artist sells her paintings in an art gallery.
C)Studying the sky,a child looks for faces in the clouds.
D)A waitress carefully wipes down tables before heading home from a long day.

Question 17

Sustainable economic and environmental policies will shift the focus from

A)sustainability to productivity.
B)growth to the well-being of humans.
C)productivity to growth.
D)productivity to profits.

Question 18

The Doha Round of WTO meetings have failed to reach agreement about

A)currency exchange.
B)converting the economies of developed nation from green to brown.
C)farm subsidies and trade barriers.
D)how to control public protests at future WTO meetings.

Question 19

The World Trade Organization

A)mainly regulates the use of global environmental resources.
B)guards human rights and the environmental resources of the world.
C)is widely recognized as the leader of global trade regulation.
D)has steadily lost the power to regulate international trade.

Question 20

In the classical view of economic activity in this figure,if the number of households in a region increases,

A)total household consumption will decrease.
B)the demands for labor will increase.
C)goods and services will decline.
D)the total cost of labor will decline.

Question 21

The ecological economic paradigm places the greatest emphasis on the

A)amount and quality of capital available to industry.
B)abundance of well-trained,well-educated labor that is available.
C)essential functions of the natural environment.
D)public's understanding of the natural environment.

Question 22

Which of the following represents intangible capital?

A)pollination
B)coal and petroleum
C)solar energy
D)the library of the Smithsonian Institution

Question 23

What do the GDP and the World Bank both fail to include in their measures of wealth?

A)the importance of law and order in a society
B)the gradual deterioration of machinery used in industrial manufacturing
C)the income from the sales of goods abroad
D)natural services provided by ecosystems

Question 24

The ecological economic paradigm argues that the environment encompasses the economy because the environment is essential to provide

A)the energy necessary to run our homes and factories.
B)solar energy needed for plants and to light our environment during the day.
C)transportation along highways,railways,rivers,and oceans.
D)vital raw materials and ecosystem services and absorb wastes.

Question 25

The World Bank (initially)and measures of GDP did not include the economic value of

A)ecosystem services such as the breakdown of wastes,climate regulation,and oxygen production.
B)the regeneration of many natural resources by sustainable processes in which natural resources are renewed.
C)the migration of many animal species from one region to another,replenishing the harvest of these natural resources.
D)increases in the prices paid for natural products such as fish,wood,and fossil fuels.

Question 26

Natural capital includes ecosystem capital plus

A)natural forms of energy,such as solar,wind,and flowing water.
B)nonrenewable resources such as fossil fuels.
C)money available to invest in growing industry.
D)all of the products of photosynthesis in the biosphere.

Question 27

In this figure,which of the following represents a potentially sustainable process?

A)the transformation of oil into heat energy in a power plant
B)the generation of wastes as a byproduct of human consumption
C)the release of heat into the atmosphere
D)the recycling of materials generated by human consumption

Question 28

The concept of sustainability requires that

A)economic growth does not exceed the renewal of natural capital.
B)all sources of energy used in an economy must come from the sun.
C)global economic systems are based on the harvesting of natural products.
D)economies use equal portions of land,labor,and capital.

Question 29

According to 2011 World Bank studies,which of the following is an example of the dominant form of wealth for most countries?

A)minerals and fossil fuels
B)fisheries,forests,and large supplies of water
C)machinery,vehicles,highways,and stock investments
D)the intangible wealth of education and educational systems

Question 30

Which of the following is part of natural capital but not ecosystem capital?

A)solar energy used to drive photosynthesis throughout the biosphere
B)coal and oil reserves
C)the production of electrical energy from wind turbines and dams
D)the genetic diversity of all plants and animals used in modern agriculture

Question 31

Which one of the following reduces net GDP?

A)a coal-fired power plant that pollutes the air
B)manufacture of products to clean polluted water
C)clear-cutting logging of 1000 acres of pine trees
D)degradation of farm equipment

Question 32

Unlike high-income countries,low-income countries rely most on their

A)human resources.
B)produced capital.
C)natural capital.
D)intangible capital.

Question 33

From a global sustainability perspective,economic production

A)is the sum of all photosynthesis in the biosphere and the resulting natural products.
B)consists of all of the natural products and natural resources in the world,which are available for harvesting by humans.
C)is the process of converting the natural world to the manufactured world.
D)represents the summed gross national products of all industrialized nations of the world.

Question 34

Teaching people to use forests in a sustainable way to produce lawn furniture represents

A)human capital affecting renewable resources,generating produced capital.
B)social capital affecting nonrenewable resources,used in the creation of recycled capital.
C)recycling of nonrenewable resources to generate social capital.
D)knowledge assets impacting nonrenewable resources in the generation of social capital.

Question 35

Which of the following is not included in the calculation of the GNP of a coal mine?

A)the cost of fuel to run the mining equipment
B)the cost of health benefits for the workers
C)the gradual breakdown and need for replacement of the equipment
D)the depletion of coal from the mine

Question 36

The classical economic paradigm and the new ecological economic paradigm differ in the way that

A)each views the land,either as a resource within the human economy (classical)or as something that encompasses the economy (ecological).
B)the value of capital is assessed,either in dollars (classical)or as resources that can be mined from the Earth (ecological).
C)labor is determined,either as the number of people who are unemployed not counting farmers (classical)or the number of people who are unemployed counting farmers (ecological).
D)labor and capital are assessed,either counting the total labor and capital resources available (classical)or that which is in use in operations (ecological).

Question 37

Which is an example of produced capital?

A)stocks and bonds
B)laws and policies
C)organically grown mangoes
D)fisheries

Question 38

From an ecological economist's perspective,without sustainability,as economies grow,

A)gross national product grows too.
B)natural resources are renewed.
C)the natural world is depleted.
D)natural ecosystems are replenished.

Question 39

Large stocks of fish in the great lakes represent

A)nonrenewable natural capital.
B)renewable natural capital.
C)intangible capital.
D)produced capital.

Question 40

What would comprehensive environmental accounting add to the calculation of GDP?

A)the depreciation of natural capital and reductions in ecosystem services
B)the depreciation of human capital and the degeneration of social systems
C)the renewal of natural resources through natural processes
D)income generated from the sale of non-renewable natural resources

Question 41

The "rule of law index" is a measure of

A)the capacity of the prisons and jails in a country.
B)the penalties imposed for the violation of certain standard laws.
C)justice and the structure of social systems in a society.
D)the number of financial institutions and industries,which experience crime.

Question 42

In many countries,the policy life cycle will be in

A)a different stage for different problems,which is unrelated to the stage of economic development of a country.
B)the same stage for different problems,which is unrelated to the stage of economic development of a country.
C)a different stage for different problems,which is related to the stage of economic development of a country.
D)the same stage for different problems,which is related to the stage of economic development of a country.

Question 43

Which of the following represents a market approach to environmental policy?

A)passing laws that limit the amount of mercury that can be released by a coal-fired power plant
B)regulations that require storm water and sewage to be separated in municipal water treatment plants
C)using a cap-and-trade system to control the levels of carbon dioxide released into the air
D)limiting the amount of national forests available for timber harvesting

Question 44

Environmental government policies and regulations are applied at the

A)federal level only.
B)state and federal levels.
C)local,state,and federal levels.
D)local level only.

Question 45

Command and control approaches to environmental public policy

A)increase the likelihood of continued low levels of pollution,not the elimination of pollution.
B)are not as good market-based policies for most environmental problems.
C)are simpler than market based policies.
D)use GPI economic principles to determine the nature of the response.

Question 46

Which of the following best illustrates an intergenerational consideration?

A)increasing health-care insurance for every citizen in a country
B)rationing gasoline in a time of short supply
C)reducing the harvest of blue fin tuna to sustainable levels
D)depleting a forest to produce firewood for use in heating and cooking

Question 47

Millions of human lives could be saved if we developed environmental policies that

A)control outbreaks of autoimmune diseases.
B)prevent the degradation of the environment and encouraged sustainable use.
C)provide food and shelter for the developing nations of the world.
D)promote the construction of dams and power plants in the least developed parts of the world.

Question 48

Examine the trends in the GDP and GPI.The GPI has remained fairly level because of

A)the failure to include the depreciation of natural capital and ecosystem services.
B)the decreasing environmental and social costs of economic activity.
C)the rising environmental and social costs of economic activity.
D)increasing education,better social programs,and overall reductions in crime.

Question 49

How does the EPA affect environmental policy?

A)The EPA passes laws that control environmental regulations.
B)The EPA develops rules and regulations based on laws passed by Congress.
C)The EPA determines which laws passed by the Judicial Branch apply to environmental policy.
D)The EPA funds ecological studies that inform the executive branch about what environmental laws are needed.

Question 50

In general,careful and detailed economic studies indicate that environmental protection helps the environment

A)but hurts the economy and is bad for jobs.
B)and produces more jobs but hurts the economy.
C)and helps the economy but costs the loss of jobs.
D)and does not hurt the economy or cost a net loss of jobs.

Question 51

Environmental public policy is intended to

A)promote the harvesting of natural resources.
B)improve human welfare and protect the natural world.
C)ensure access to natural resources for industry.
D)measure the impact of industrial wastes on the environment.

Question 52

Because of rising environmental and social costs of economic activity,the

A)gap between the GDP and GPI has increased.
B)gap between the GDP and GPI has decreased.
C)GDP has remained stable while the GPI has grown.
D)GDP has declined while the GPI has increased.

Question 53

In 1962,Rachel Carson published the book Silent Spring,documenting the devastating effects of pesticides,including DDT,on birds and other organisms in our natural environments.In the years that followed,new laws and regulations were adopted that banned the use of DDT in 1972 in the United States.
The preparation and publication of the book Silent Spring represented which stage of the policy life cycle?

A)control
B)implementation
C)formulation
D)recognition

Question 54

In 1962,Rachel Carson published the book Silent Spring,documenting the devastating effects of pesticides,including DDT,on birds and other organisms in our natural environments.In the years that followed,new laws and regulations were adopted that banned the use of DDT in 1972 in the United States.
Given the eventual response to ban DDT,the late 1960s most likely represented which stage of the policy life cycle?

A)control
B)implementation
C)formulation
D)recognition

Question 55

Which part of the government is responsible for passing public-policy laws?

A)executive branch
B)judicial branch
C)legislative branch
D)EPA

Question 56

The GDP and the GPI both include calculations of the

A)labor that goes into housework,parenting,and volunteer work.
B)cost of pollution.
C)cost of crime.
D)income from the sale of natural products.

Question 57

Discount rates calculate the

A)future value of an asset.
B)aesthetic value of natural assets.
C)current value of a future benefit or cost.
D)intrinsic value of renewable resources.

Question 58

In 1962,Rachel Carson published the book Silent Spring,documenting the devastating effects of pesticides,including DDT,on birds and other organisms in our natural environments.In the years that followed,new laws and regulations were adopted that banned the use of DDT in 1972 in the United States.
Today,DDT is no longer used in the United States because it is banned by law.At this point,the issue has reached the

A)control stage because of a command and control strategy.
B)control stage because of a market based strategy.
C)implementation stage because of a command and control strategy.
D)implementation stage because of a market based strategy.

Question 59

Equity in the distribution of resources is promoted by growth in

A)sustainable harvesting of renewable natural resources.
B)human resources and produced capital.
C)the harvesting of non-renewable and non-renewable natural capital.
D)transportation and navigation systems to move produced capital.

Question 60

Sustainable development and the protection of public health require

A)the generation of electricity from fossil fuels.
B)governments to recognize personal liberties as the highest priority.
C)the independence of private landowners to develop individual policies.
D)public policies that protect the environment.

Question 61

Shadow pricing is used to estimate the

A)deterioration and replacement costs of materials.
B)reduced cost of providing health care.
C)cost of cleaning up an oil spill.
D)value of an endangered species of plant.

Question 62

From 2001 to 2009,the Bush administration

A)developed an energy policy that favored heavy exploitation of fossil fuels.
B)strengthened the United States support of the Kyoto Protocol.
C)strengthened air and water quality standards.
D)supported carbon emission reduction and renewable energy development.

Question 63

Without the additional equipment and labor,the unregulated pollution is expected to cause about $4 million in health care costs.This pollution from the smokestacks is an example of

A)an internal bad cost.
B)an internal good cost.
C)an external bad cost.
D)an external good cost.

Question 64

The benefit to cost ratio of replacing chlorofluorocarbons in new cars turned out to be

A)higher than predicted.
B)lower than predicted.
C)about what was predicted.
D)unpredictable because of fluctuating costs of the replacement gases.

Question 65

As a percentage of GDP,the cost of environmental protection is,according to EPA estimates

A)more than the cost of providing health care to citizens of the United States.
B)more than the cost of national defense in the United States.
C)about the same cost as the combined amounts spent on health care and defense in the United States.
D)less than either the cost of defense or health care in the United States.

Question 66

People who are well aware of the damaging effects of mercury might insist that all fish that they eat is free from mercury.They may be alarmed,for instance,if mercury levels remain at very low levels,far below that known to cause harm.Insisting that mercury be completely eliminated from fish

A)will likely require little additional cost with potentially great benefits.
B)will likely reduce the cost of fish and improve the health of consumers.
C)is not cost effective for the health benefits of complete elimination.
D)is a necessary but very expensive part of additional environmental controls.

Question 67

In the years 2001-2010,the benefit to cost ratio

A)always had more benefits than costs.
B)always had more cost than benefits.
C)usually had more costs than benefits.
D)usually had more benefits than costs.

Question 68

Environmental policies

A)may be cost-neutral or may come at a monetary cost.
B)are always expensive,costing consumers and industry more money.
C)rarely have a monetary cost associated with them.
D)are paid for by tax dollars,only indirectly costing citizens for their implementation.

Question 69

The Obama administration

A)now censors scientific study that conflicts with its position.
B)no longer requires consultation with wildlife experts before approving projects potentially harming endangered species.
C)now encourages the development of renewable energy and reduction of carbon emissions.
D)has slashed the EPA's budget so that little enforcement is possible.

Question 70

A company near a large city is required to keep its smokestack pollution to new lower levels,costing the company $2 million in additional equipment (which will last at least 10 years)and $100,000 a year in additional labor.Lowering the air pollutants in the region is expected to save $4 million in medical expenses in the affected region over the next 10 years.
Over this 10-year period,the benefit to cost ratio is

A)4 to 3.
B)3 to 4.
C)4 to 2.
D)2 to 4.

Question 71

As indicated in this figure,the most expensive period of pollution control is from years

A)0-5 while the least expensive is in years 20-25.
B)0-5 while the least expensive is in years 5-10.
C)20-25 while the least expensive is in years 0-5.
D)10-15 while the least expensive is in years 15-20.

Question 72

The elimination of leaded gasoline resulted in

A)a doubling of gas mileage in cars.
B)a 40% increase in the sale of diesel-powered vehicles.
C)a benefit to cost ratio of at least 10 to 1.
D)the renewal of the ozone layer.

Question 73

In this figure,what level of pollution reduction comes at the highest cost?

A)the first 20% of pollution reduction
B)from 20-40% pollution reduction
C)from 60-80% pollution reduction
D)from 80-100% pollution reduction

Question 74

The modern U.S.environmental movement began as a

A)very partisan,divided effort,but now has broad bipartisan support.
B)very partisan effort,which remains partisan and highly contested today.
C)broad bipartisan effort,which remains in effect today.
D)broad bipartisan effort but has fractured into a very contentious partisan debate with intense lobbying.

Question 75

Costs of pollution control tend to

A)decrease over time because of initial investments in reductions and new technologies.
B)decrease over time because regulations generally become less restrictive.
C)increase over time as levels of acceptable pollution become increasingly restrictive.
D)increase over time as new technologies require renewed investments.

Question 76

Environmental public policy

A)diminishes the wealth of a nation.
B)transfers wealth from polluters to pollution controllers and to less polluting companies.
C)is bad for the economy.
D)has significantly increased unemployment in the United States.

Question 77

Today,environmental regulations in the United States

A)require substantial scientific support and strong political efforts.
B)require only substantial scientific support.
C)are hopeless,with little support remaining and general reversals of many policies and regulations.
D)are simply a matter of politics,with little effort to involve science and scientific data.

Question 78

One way to participate in the development of environmental policies is to become a member of an NGO.What is an NGO?

A)NGO stands for nongovernmental organization.
B)NGO stands for national geographic organization.
C)NGO stands for neogeopolitical organization.
D)NGO stands for natural global outlook.

Question 79

Which of the following is true about U.S.pollution levels?

A)the release of toxic chemicals has increased by 19%.
B)the average levels of lead in the blood of children have declined by 80%.
C)acid deposition has increased by 27%.
D)total emissions of five principal air pollutants have increased by 14%.

Question 80

Which one of the following would likely result from the imposition of green fees?

A)The price of fossil fuels would decrease.
B)Our economy would move toward sustainability.
C)The price of an item will no longer reflect its total cost.
D)People will increase their use of products that negatively impact the environment.