Question 1

If a car company manufactures an electric car made of recycled and bio-based components and powers the car battery by leasing solar panels to its customers, then which of the following happens?

Accepted Answer

The answer of If a car company manufactures an electric...

Question 2

Which of the following is an example of an external cost?

Accepted Answer

Health costs resulting from hazardous wastes produced during the making of a product are an example of an external cost because the cost is not borne by the business producing the product but by society as a whole. It is an externality because the negative effects of pollution are not reflected in the cost of producing the product.

Question 3

_________ include manufacturing costs, labor, taxes, utilities, insurance, and rent.

Accepted Answer

These costs are all internal to the business and are directly related to producing goods or providing services.

Question 4

All of the following actions would threaten the Earth's ability to provide ecosystem goods and services EXCEPT __________.

Accepted Answer

Recycling would actually help preserve the Earth's ability to provide ecosystem goods and services by reducing waste and conserving resources. The other options (deforestation, overfishing, soil erosion, and littering) all contribute to the degradation of ecosystems and their ability to provide essential goods and services.

Question 5

What three factors are multiplied in the IPAT model to gauge a population's ecological footprint?

Accepted Answer

The IPAT model multiplies population, affluence, and technology to determine the ecological footprint of a population.

Question 6

The true cost of an item produced in a factory includes which of the following factors?

Accepted Answer

The true cost of an item produced in a factory includes social costs, environmental costs, internal costs, and external costs. Therefore, the best choice is E, which includes all of the factors listed above.

Question 7

The IPAT equation is used to estimate the size of a population's ecological footprint. Which of the following factors is NOT found in that equation?

Accepted Answer

Productivity is not found in the IPAT equation. The factors in the IPAT equation are I (environmental impact), P (population), A (affluence), and T (technology).

Question 8

Of the next billion people added to Earth, over 99% will be born in less developed, poorer parts of the world. Is it fair to say that the overall impact of humans on the environment is mostly the fault of developing countries? Explain.

Accepted Answer

The answer of Of the next billion people added to...

Question 9

Which of the following would be part of an environmental economist's agenda?

Accepted Answer

Environmental economists focus on understanding the long-term impact of human activities on the environment and society. They consider the costs and benefits of different policies and actions that affect the environment and strive to find ways to balance economic growth with environmental sustainability. They also work to develop policies that encourage resource efficiency and reduce waste, pollution, and greenhouse gas emissions. Discounting the future value of ecosystem goods and services (B) is not typically part of an environmental economist's agenda, as they recognize the importance of preserving ecological systems for future generations. Pricing a product or service to account for manufacturing and labor costs but not pollution and resource depletion (C) would be seen as unsustainable and harmful to the environment. Environmental economists also do not emphasize a linear, product-oriented economic system (D) as this model leads to a "take-make-waste" approach with little regard for the environmental impact. Maximizing the ecological footprint associated with a product or service (E) would be contrary to an environmental economist's goals of promoting sustainability and reducing environmental harm. Therefore, only option A is the correct choice.

Question 10

Today, if we were to purchase a good or service at its true cost, how would the price compare to what we are accustomed to paying for the good or service?

Accepted Answer

Most goods and services have hidden costs such as environmental degradation, exploitation of labor, depletion of natural resources, and healthcare costs associated with pollution. True cost accounting aims to factor in all of these external costs into the price of goods and services. As a result, the true cost of goods and services would likely be higher than what we are currently accustomed to paying.

Question 11

Compare and contrast technology as a variable that increases and decreases a population's overall impact.

Accepted Answer

The answer of Compare and contrast technology as a variable...

Question 12

Your company is in the process of developing an alternative to carpet tile. To make your product more desirable and profitable, what right costs of manufacturing carpet tiles should your designers focus on and why?

Accepted Answer

The answer of Your company is in the process of...

Question 13

What are the internal and external costs associated with producing paper?

Accepted Answer

The answer of What are the internal and external costs...

Question 14

Ecosystem services would be discounted in the _________economic system.

Accepted Answer

Mainstream economic systems tend to value only goods and services that can be exchanged in markets, and often discount non-market benefits such as ecosystem services.

Question 15

One of the limitations of mainstream economics is that it does not take into account ___________ costs when a price is assigned to a product or service.

Accepted Answer

Mainstream economics typically only considers the internal costs of producing a good or service, such as the cost of materials and labor. However, it often ignores the external costs associated with production or consumption, such as pollution or the depletion of natural resources. This can lead to market failures and underpricing of goods that have negative externalities.

Question 16

An assessment of the cost of a good or service that includes the environmental, social, and economic costs is called the __________.

Accepted Answer

The triple-bottom line includes consideration of the environmental, social, and economic costs, making it the most comprehensive evaluation of cost. The other options do not specifically include all three elements.

Question 17

Including both internal and external costs when setting a price for a good or service is an example of ______ cost.

Accepted Answer

Including both internal and external costs when setting a price for a good or service is an example of true cost accounting. True cost accounting involves taking into account all costs associated with a product or service, including hidden costs such as environmental or societal impacts. This can help businesses make more informed decisions about pricing and can encourage more sustainable practices.

Question 18

Sustainable use of forests allows us to use the trees to produce goods without depleting them. The amount of net resources produced from the forest or any other form of natural capital is known as ____________.

Accepted Answer

The amount of net resources produced from the forest or any other form of natural capital is known as natural interest. This refers to the amount of resources that can be extracted from the forest without degrading or reducing its overall productivity. This sustainable use of forests ensures that we can continue to utilize the resources they provide without destroying them completely. Options A, B, and E are not correct as they do not specifically refer to the concept of sustainable use of forests or natural capital. Raw material is a term that generally refers to resources that are used to create products, but it does not necessarily imply sustainable use.

Question 19

Infographic 6.5.

-Refer to Infographic 6.5. You can find a double cheeseburger on the "dollar menu" at many fast-food chains. Use the infographic to describe how the true cost of that food product is not reflected by the sale price.

Accepted Answer

The answer of Infographic 6.5.

-Refer to Infographic 6.5. You can...

Question 20

By ignoring the ________, economies create a false idea of the _______ of particular choices.

Accepted Answer

By ignoring external costs, such as environmental damages or social costs, economies create a false idea of the true cost of particular choices. This leads to a situation where decisions may appear good for the economy, but have negative consequences for society and the environment. Ignoring internal costs, on the other hand, would not give a false idea of the true cost, as internal costs are already taken into account in the decision-making process. Closed-loop systems are not relevant to the issue of false ideas of cost.

Quiz 6: Ecological Economics and Consumption- Wall to Wall, Cradle to Cradle: a Leading Carpet Company Takes a Chance on Going Green