Deck 9: Business and Environmental Sustainability

Question 1

The circular flow model differentiates natural resources from the other factors of production.

Answer 1

False
Explanation: The circular flow model explains the nature of economic transactions in terms of a flow of resources from businesses to households and back again.It does not differentiate natural resources from the other factors of production.

Question 2

According to the market approach to resolving environmental challenges,standards like corporate average fuel economy that address pollution and pollution-related disease are considered mainly because of people's reliance on market solutions to sustain the environment.

Answer 2

False
Explanation: The market approach to resolving environmental challenges holds that a number of alternative policies like corporate average fuel economy standards that can address pollution and pollution-related disease would never be considered if we relied only on market solutions to sustain the environment.

Question 3

Before the introduction of the environmental legislation in the 1970s,the primary legal avenue open for addressing environmental concerns was contractual law.

Answer 3

False
Explanation: Before the environmental legislation was enacted during the 1970s,the primary legal avenue open for addressing environmental concerns was tort law.

Question 4

The economic development approach to the natural world suggests that sustainable business and sustainable economic development seek to create new ways of doing business in which business success is measured in terms of economic,ethical,and environmental sustainability.

Question 5

The three pillars of sustainability include an organization's competitive sustainability.

Question 6

The conservation movement advocated a restrained and prudent approach to the natural world.

Question 7

Knowing what the future must be,creative businesses look backward to the present and determine what must be done to arrive at that future.This process is known as:

A)backward integration.
B)forecasting.
C)forward integration.
D)backcasting.

Question 8

According to William Baxter,there is an optimal level of pollution that would best serve society's interests.

Question 9

According to the conservation movement,the natural world was valued as a resource,providing humans with both direct and indirect benefits.

Question 10

Identify a true statement about the conservation movement.

A)It considered natural resources to be able to provide an inexhaustible supply of material.
B)It argued that the natural world is available only for the exploitation of human beings.
C)It argued that the natural world was valued as a resource,providing humans with both direct benefits and indirect benefits.
D)It believed that the natural world does not have the productive capacity to produce long-term income.

Question 11

From a strict market economic perspective,resources are "finite" and have to be used efficiently to gain maximum economic benefits.

Question 12

Which of the following is true of the conservation movement?

A)It advocated that the natural world should not be used as a capital resource.
B)It considered natural resources to be able to provide an inexhaustible supply of material.
C)It recommended a restrained and prudent approach to the natural world.
D)It argued against the natural world being used to provide indirect benefits.

Question 13

The triple bottom line approach involves measuring business success of sustainable businesses and sustainable economic development in terms of:

A)economic,legal,and environmental sustainability.
B)economic,ethical,and environmental sustainability.
C)economic,legal,and competitive sustainability.
D)legal,competitive,and environmental sustainability.

Question 14

The ultimate goal of biomimicry is to eliminate waste altogether rather than reducing it.

Question 15

Internalizing external costs and assigning property rights to unowned goods are responses to market failures.

Question 16

According to the conservation movement,businesses that use animals for food,entertainment,or pets violate the ethical rights of these animals.

Question 17

People learn about market failures and thereby prevent harms in the future only by sacrificing a first generation as a means of gaining information.

Question 18

Reminiscent of the _____ tradition,a view supporting animal rights suggests that some animals have the cognitive capacity to possess a conscious life of their own and people have a duty not to treat these animals as mere objects and means to their own ends.

A)Kantian
B)virtue ethic
C)neoclassical
D)social web

Question 19

From an environmental standpoint,the regulatory model assumes that economic growth is environmentally and ethically benign.

Question 20

A market-based approach to resolving environmental challenges denies that environmental problems are economic problems that deserve economic solutions.

Question 21

Which of the following is involved in environmental problems according to the market-based approach to resolving environmental challenges?

A)Lack of knowledge of producing renewable resources
B)Inability of businesses to produce and sell limited resources
C)Limited use of appropriate substitutes for limited resources
D)Allocation and distribution of limited resources

Question 22

Which of the following was charged with developing recommendations for paths toward economic and social development that would not achieve short-term economic growth at the expense of long-term environmental and economic sustainability?

A)The Bluewash Commission
B)The Binding Commission
C)The Barentsburg Commission
D)The Brundtland Commission

Question 23

Which of the following is true of the circular flow model?

A)It differentiates natural resources from the other factors of production.
B)It suggests that to keep up with the economy,the population must grow.
C)It treats economic growth as both the solution to all social ills and also as boundless.
D)It argues that the economy cannot grow indefinitely.

Question 24

Which of the following legal avenues was primarily used for addressing environmental concerns before the environmental legislation was enacted in the 1970s?

A)Tort law
B)Contract law
C)Commercial law
D)Criminal law

Question 25

In economic terms,all resources:

A)are infinite because they can be replaced by substitutes.
B)are distributed fairly by the government.
C)can be made available everywhere.
D)are distributed efficiently in the market.

Question 26

According to economist Herman Daly,neoclassical economics,with its emphasis on economic growth as the goal of economic policy,will inevitably fail to meet sustainability challenges:

A)if it suggests that the population of the world needs to be controlled.
B)unless it recognizes that the economy is but a subsystem within earth's biosphere.
C)unless it recognizes that resources are infinite.
D)if it focuses on recycling and reusing the by-products of the production process.

Question 27

The possibility that the economy cannot grow indefinitely is simply not part of the:

A)three pillars of sustainability approach.
B)circular flow model.
C)triple bottom line approach.
D)bilinear model.

Question 28

The three goals of sustainable development that include economic,environmental,and ethical sustainability are referred to as the:

A)tripartite goals.
B)three pillars of sustainability.
C)three-pronged charter.
D)shoulders of sustainability.

Question 29

Markets can work to prevent harm only through information supplied by the existence of market failures.This is better known as the:

A)biomimicry effect.
B)backcasting problem.
C)first-generation problem.
D)primary market effect.

Question 30

Which of the following is a reason for the inadequacy in ad hoc attempts-internalizing external costs and assigning property rights to unowned goods such as wild species-to repair market failures?

A)The backcasting problem
B)The fungibility problem
C)The biomimicry problem
D)The first-generation problem

Question 31

In economic terms,resources that are not being used to satisfy consumer demand:

A)are being conserved.
B)are being wasted.
C)can be used to preserve the environment.
D)can be used for animal welfare.

Question 32

Identify a true statement about the environmental legislation enacted in the 1970s.

A)It overestimated the influence that businesses can have in establishing a law.
B)It focused mainly on providing compensation after the occurrence of pollution or any other environmental harm.
C)It shifted the burden from those threatened with harm to those who would cause the harm.
D)It primarily addressed environmental concerns using tort law.

Question 33

According to the market-based approach,environmental problems:

A)are caused by conservationists.
B)are caused by the inexhaustible supply of resources.
C)deserve economic solutions.
D)need to be solved through corporate social responsibility.

Question 34

Market failure occurs when:

A)no markets exist to create a price for important social goods.
B)manufacturers use substitutes for certain resources.
C)businesses conform to regulatory requirements.
D)no economic solutions are used to address environmental problems.

Question 35

Which of the following is a problem associated with the regulatory approach to environmental challenges?

A)The regulatory model assumes that economic growth is environmentally and ethically benign.
B)If people rely on the law to protect the environment,environmental protection will extend beyond the law.
C)Business passively responds to consumer desires,and consumers are unaffected by the messages that business conveys.
D)National regulations are the only means to effectively address international environmental challenges.

Question 36

Which of the following is true about the concept of sustainable development and sustainable business practice?

A)It suggests a radically new vision for integrating financial and environmental goals,compared with the growth model that preceded it.
B)According to this concept,only individuals who can prove that they had been harmed by pollution can raise legal challenges.
C)According to this concept,any harm to the environment can be adequately compensated.
D)It focuses only on the costs that businesses incur in pursuing environmental goals.

Question 37

Which of the following is true of the Brundtland Commission?

A)It was named after the place in Norway where the summit was conducted for the first time.
B)It was charged with developing recommendations for paths toward economic and social development at the expense of underdeveloped and developing countries.
C)It defined sustainable development as development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
D)It criticized the report from the United Nations' World Commission on Environment and Development published in 1987.

Question 38

William Baxter argued that:

A)there is an optimal level of pollution that can be achieved through competitive markets.
B)the natural world is still valued as a resource,providing humans with both direct benefits and indirect benefits.
C)there is a legal solution for every economic problem.
D)all resources can be replaced by substitutes.

Question 39

Which of the following models explains the nature of economic transactions in terms of a flow of resources from businesses to households and back again?

A)The circular flow model
B)The triple bottom line model
C)The pyramidal flow model
D)The neoclassical model

Question 40

Market failure can lead to serious environmental harm by:

A)creating a price for important social goods.
B)making no distinction between individual decisions and group consequences.
C)eliminating all kinds of externalities in the economic exchange system.
D)internalizing external costs.

Question 41

_____ refers to the growing marketing practice of taking back one's products after their useful life.

A)Rebranding
B)Reverse channels
C)Disintermediation
D)Vertical channels

Question 42

Defenders of the market-based approach to resolving environmental challenges contend that environmental problems are _____ problems.

Question 43

According to the cradle-to-cradle model,a business should:

A)take resources,make products out of them,and discard whatever is left over.
B)incorporate the end results of its products back into the productive cycle.
C)find effective ways to dispose waste with minimal damage to the environment.
D)double its existing productivity from one-half the resource use.

Question 44

_____ is the practice of promoting a product by misleading consumers about the environmentally beneficial aspects of the product.

A)Greenwashing
B)Redlining
C)Biomimicry
D)Backcasting

Question 45

Before the environmental legislation was enacted during the 1970s,the primary legal avenue open for addressing environmental concerns was _____ law.

Question 46

Identify the sustainability model that would hold a business liable for groundwater contamination caused by its products even years after they had been buried in a landfill.

A)The bioinspiration model
B)The open-loop production model
C)The take-make-waste model
D)The cradle-to-grave model

Question 47

Business takes resources,makes products out of them,and discards whatever is left over.This approach is known as:

A)cradle-to-grave approach.
B)take-make-waste.
C)open-loop production.
D)closed-loop production.

Question 48

The concept of _____ can be traced to a 1987 report from the United Nations' World Commission on Environment and Development (WCED),more commonly known as the Brundtland Commission.

Question 49

Over the long term,resources and energy cannot be used,nor waste produced,at rates at which the biosphere cannot replace or absorb them without jeopardizing its ability to sustain life.These are what Herman Daly calls the:

A)"economic limitations."
B)"backcasting effect."
C)"biophysical limits to growth."
D)"un-expandable boundaries."

Question 50

According to the _____ law of thermodynamics (the conservation of matter/energy),neither matter nor energy can truly be "created," but can only be transferred from one form to another.

A)first
B)second
C)third
D)fourth

Question 51

Which of the following is true of a service-based economy?

A)A service-based economy tends to consumers' demands for clothes cleaning,floor covering,illumination,entertainment,and so forth.
B)A service-based economy interprets consumer demand as a demand for washing machines,carpets,lights,consumer electronics,and so forth.
C)A service-based economy weakens the production efficiencies.
D)A service-based economy increases material and energy costs significantly.

Question 52

In an ideal situation,the waste of one firm becomes the resource of another,and such synergies can create eco-industrial parks.This principle is often referred to as:

A)biomimicry.
B)eco-efficiency.
C)open-loop production.
D)bioinspiration.

Question 53

An often overlooked aspect of advertising is its:

A)pricing function.
B)planning function.
C)educational function.
D)legal function.

Question 54

"Doing more with less" has been an environmental guideline for decades.This can be achieved through the first principle of sustainability known as:

A)eco-diversity.
B)eco-efficiency.
C)the cradle-to-cradle responsibility.
D)the take-make-waste model.

Question 55

"Closed-loop" production seeks to:

A)integrate what is presently waste back into production.
B)reduce waste rather than eliminating it totally.
C)double the existing productivity from one-half the resource use.
D)dispose waste with minimal damage to the environment.

Question 56

Which of the following holds that a business is responsible for the entire life of its products,including the ultimate disposal even after the sale?

A)The cradle-to-grave model
B)The take-make-waste approach
C)The cradle-to-cradle model
D)The eco-efficiency principle

Question 57

In economic terms,all resources are _____,that is,they can be replaced by substitutes,and in this sense resources are infinite.

Question 58

The _____ movement made the case that business had good reasons for conserving natural resources,reasons that paralleled the rationale to conserve financial resources.

Question 59

Labeling products with such terms as "environmentally friendly," "natural," "eco," "energy efficient," "biodegradable," and the like can help promote products that have little or no environmental benefits.This practice is known as:

A)greenskinning.
B)redlining.
C)gentrification.
D)greenwashing.

Question 60

One of the attributes of sustainability is that it:

A)reduces competitive advantage.
B)cannot be used in the long term.
C)is a good risk management strategy.
D)can lead to huge expenses.

Question 61

What do defenders of the market approach to environmental responsibilities state about the ability of economic markets to achieve a sound environmental policy? Discuss if their responses are environmentally adequate.

Question 62

Elaborate on the conservation movement.

Question 63

Discuss the challenges associated with the efficient market approach to environmental responsibilities.

Question 64

Explain Herman Daly's economic system model,also known as the sustainable model.

Question 65

While the regulatory and compliance model tends to interpret environmental responsibilities as constraints upon business,the _____ model is more forward looking and may present business with greater opportunities than burdens.

Question 66

Describe Herman Daly's concepts of sustainable development and the "circular flow model."

Question 67

What are the general principles that will guide the movement of businesses toward sustainability?

Question 68

Describe the challenges associated with the regulatory approach to environmental concerns.

Question 69

The _____ model treats economic growth as both the solution to all social ills and also as boundless.

Question 70

What is an optimal level of pollution?

Question 71

Briefly describe the reasons supporting the practice of sustainability within businesses.

Question 72

The concept of _____ is a way business can contribute to sustainability by reducing its resource usage in its production cycle.

Question 73

Why was the Brundtland Commission formed?

Question 74

Discuss the view of the free-market approach on resource conservation.

Question 75

Explain how business understands the opportunities available in the age of sustainability.

Question 76

Explain,with an example,how eco-efficiency can be implemented on an individual and a business scale.

Question 77

List the various laws related to governmental regulation of the environment.Describe the method of addressing environmental concerns prior to the establishment of laws.

Question 78

A(n)_____ economy interprets consumer demand as a demand for services-for clothes cleaning,floor covering,illumination,entertainment,cool air,transportation,word processing,and so forth.

Question 79

The _____ responsibility holds that a business should be responsible for incorporating the end results of its products back into the productive cycle.

Question 80

Explain the concepts of eco-efficiency,biomimicry,and cradle-to-cradle responsibility.