Deck 11: Biophysical Limits to Economic Growth: the Malthusianneo-Malthusianecological Economics Perspectives

Question 1

Similar to neo-Malthusians, neoclassical economists have a 'dismal' worldview when it
comes to the role of technology and sustainability of living standards.

Answer 1

False

Question 2

A basic assumption of the neo-classical school of thought is that any form of capital can
be a substitute to any other form of capital.

Answer 2

True

Question 3

Malthusian differ in their view of technology; that is, unlike neo-classical economists
they do not consider the substitutability of resources.

Answer 3

True

Question 4

Neo-Malthusians and neo-classical economists share the same view on the substitutability
of resources.

Question 5

The real cost of extractive products is measured in terms of inflation-adjusted prices.

Question 6

Empirical evidence since the 1970s show that aggregate global and United States
economic and environmental trends are improving.

Question 7

Published work on scarcity and growth in the 2005 book, "Scarcity and Growth
Revisited: Natural Resources and the Environment in the New Millennium", shows that there is no clear indication that scarcity in nonmarket-traded resources such as
environmental services is affecting economic growth.

Question 8

"The Rise and Fall of American Growth: The U.S. Standard of Living Since the Civil
War" lends support to the view the era of unprecedented growth in technology has come
to an end.

Question 9

The EKC hypothesis offers systematic explanations about the causes for the inverted-U
shaped relationship of income and environmental degradation.

Question 10

The EKC hypothesis assumes that continued economic growth eventually will have a
positive impact on environmental quality.

Question 11

Empirical studies have found that environmental quality is an inferior good.

Question 12

Studies have clearly shown that international trade has a positive impact on
environmental quality.

Question 13

International trade can be used to explain both the upward turn and the downturn of the
EKC.

Question 14

Empirical studies shown that the EKC turning point estimates for local air pollutants are
surprisingly consistent for rich countries.

Question 15

The EKC hypothesis has no real economic theoretical foundation for its underlying
causes.

Question 16

Empirical research suggests that the Environmental Kuznets Curve hypothesis is …

A) Not affected by trade.
B) Always valid.
C) Valid for some air pollutants but for carbon dioxide.
D) Valid only for carbon dioxide.
E) Valid only for air pollutants.

Question 17

Which of the following is a possible shape for the Environmental Kuznets Curve?

A) An N shape.
B) A U shape.
C) An inverted V.
D) A normal distribution.
E) A step-function.

Question 18

In classifying children as consumption goods, what conclusion can be drawn?

A) Parents can never specify a utility function that captures benefits from having
Children.
B) Parents can always specify a utility function that captures benefits from having
Children.
C) Children can only be viewed as a source of costs.
D) Children can only be viewed as a source of benefits.
E) None of the above.

Question 19

Microeconomics theory of fertility gives an explanation for a seemingly paradoxical negative relationship between household income and family size. In fact, which of the following contradicts this theory?

A) As income increases, parents start to desire fewer children of lesser quality.
B) As income increases, parents start to desire fewer children of superior quality.
C) It is the increased benefit of raising high quality children that ultimately
precipitates the decline in fertility.
D) Children are deemed to be inferior consumption goods.
E) None of the above.

Question 20

Which one of the following is not likely to cause a decline in fertility rates?

A) Increased literacy rates.
B) Increased quality of children.
C) Increased nutrition.
D) Increased environmental quality.
E) All of the above will likely cause a decline in fertility rates.

Question 21

What is the relationship between human capital and fertility rates?

A) Fertility tends to be high where human capital is widespread.
B) Fertility tends to be low where human capital is lacking.
C) Higher stocks of capital reduce the demand for children.
D) One is likely to observe an increase in population growth along with a further
Increase in human capital accumulation.
E) There is no relationship.

Question 22

The third stage of the demographic cycle is represented by a ____, and a ___.

A) low birth rate; low death rate
B) high birth rate; low death rate
C) high birth rate; high death rate
D) low birth rate; high death rate

Question 23

The second stage of the demographic cycle is represented by a ____, and a ___.

A) low birth rate; low death rate
B) high birth rate; declining death rate
C) high birth rate; high death rate
D) low birth rate; high death rate

Question 24

Using the following cubic model specification to show the relationships between pollution and income, Eit = β0 + β1Yit + β2Y2i t + β3Y3it + β4Zit + ε, which of the following is accurate concerning the parameters β1, β2, and β3?

A) An N-shaped relationship between income and pollution is obtained when β1
> 0, β2 < 0, and β3 > 0.
B) An N-shaped relationship between income and pollution is obtained when β1
> 0, β2 < 0, and β3 = 0.
C) An EKC or inverted U-shaped relationship is implied when β1 > 0, β2 < 0, and
β3 = 0.
D) An N-shaped relationship between income and pollution is obtained when β1
= 0, β2 < 0, and β3 > 0.
E) An N-shaped relationship between income and pollution is obtained when β1
> 0, β2 = 0, and β3 = 0.

Question 25

Which of the following theories postulates that unchecked population increases geometrically while food production increases arithmetically?

A) Kuznets
B) Neo-classical
C) Malthusian
D) Neo-Malthusian
E) Weil