Question 1

In a market-based economic system, economic decisions about prices are controlled by ____.

Accepted Answer

In a market-based economic system, prices are mainly determined by the interaction of supply and demand. The sellers set their prices based on what the buyers are willing and able to pay, and the buyers choose the products and services that offer them the best value for their money. This means that prices change in response to changes in supply and demand, and there is a natural tendency for prices to adjust to a level that brings supply and demand into balance. The government can have some influence on prices through policies and regulations, but ultimately it is the market forces of supply and demand that control prices in a market-based economy.

Question 2

The amount of a good or service available for sale at a particular price is called the ____.

Accepted Answer

The amount of a good or service available for sale at a particular price is called the supply.

Question 3

To estimate the future value of a resource, the World Bank and most businesses use _____.

Accepted Answer

The World Bank and businesses typically use a discount rate to estimate the future value of a resource. A discount rate is a percentage used to adjust the future value of a resource to account for the time value of money and the risk associated with the investment. A commonly used discount rate is 10%.

Question 4

Since 1980, a well-organized and well-funded movement has mounted a strong campaign to weaken or repeal existing U.S. environmental laws and regulations and to change the ways in which public lands are used.

Accepted Answer

This statement is true. The movement is often referred to as the "Wise Use" movement and includes groups such as the American Petroleum Institute, the American Mining Congress, and the National Cattlemen's Beef Association. They have been successful in influencing policies and regulations under multiple presidential administrations.

Question 5

Less than 10% of the U.S. public considers the environment to be one of the nation's most pressing problems.

Accepted Answer

Surveys and polls, such as those conducted by Gallup, often show that while the environment is a concern for many Americans, it typically ranks below other issues like the economy, healthcare, and national security in terms of being considered one of the nation's most pressing problems.

Question 6

A necessary result of implementing ____ is that some producers of harmful products and services would go out of business.

Accepted Answer

Full-cost pricing involves including the environmental and social costs of a product in its price, which can make harmful products less competitive and lead to some producers going out of business.

Question 7

What is an internal cost of driving a domestic car?

Accepted Answer

The cost of materials used in manufacture is considered an internal cost because it is directly associated with the production and operation of the car, borne by the manufacturer or owner.

Question 8

The central view of neoclassical economists is that economic growth is ____.

Accepted Answer

The answer of The central view of neoclassical economists is...

Question 9

How do proponents suggest we implement a tax shift to green taxes, which transfers taxes from income and wealth to pollution and environmental degradation?

Accepted Answer

Implementing a tax shift to green taxes is a significant change that should not be done overnight. It requires a transition period of 10 to 20 years to allow individuals and businesses to adjust. This shift should include tax breaks to incentivize people to adopt more sustainable behaviors. In some cases, both pollution and income/wealth should be taxed, depending on the specific situation. It should apply to all countries, not just developed ones, as environmental issues affect the entire planet.

Question 10

Some experts cite the failure to include the harmful environmental costs in the ____ of the goods and services as one of the major causes of the environmental problems we face.

Accepted Answer

Market prices often do not reflect the environmental costs of goods and services, leading to environmental problems.

Question 11

A potential problem to finding solutions to our environmental problems is that many current problems are not obvious to people on a day-to-day basis, making them seem less pressing than they really are.

Accepted Answer

Many environmental problems, such as climate change and ocean acidification, have long-term and indirect effects that may not be immediately observable in everyday life. This makes it harder for people to feel the urgency in addressing these issues.

Question 12

The economically and politically powerful interests that receive perverse subsidies spend a lot of time and money on ____, thus shifting to non-perverse subsidies would be difficult.

Accepted Answer

Lobbying is the act of attempting to influence decisions made by government officials or legislators in order to achieve favorable outcomes. Perverse subsidy recipients have a vested interest in maintaining their subsidies, so they are likely to spend a significant amount of time and money lobbying for continued support. This makes it difficult to shift to non-perverse subsidies, as they will face stiff opposition from these powerful interests.

Question 13

Hunting, trapping, and fishing are allowed in National Wildlife Refuges.

Accepted Answer

Hunting, trapping, and fishing are allowed in National Wildlife Refuges with certain regulations and permits.

Question 14

A tax on the amount of CO₂in exhaust from burning gasoline would be an example of a ____.

Accepted Answer

A tax on the amount of CO2 in exhaust from burning gasoline would be an example of a green tax. Green taxes are taxes that are levied on environmentally harmful activities or products, with the aim of discouraging those activities or encouraging alternative, more sustainable ones. In this case, the tax would incentivize people to use more fuel-efficient vehicles, or to switch to alternative fuels such as electric or hybrid vehicles.

Question 15

The ecological economist believes that conventional economic growth will eventually ____.

Accepted Answer

Ecological economists believe that conventional economic growth, which relies heavily on the depletion of natural resources, will eventually become unsustainable because it will deplete natural capital. This means that continued economic growth at the expense of the environment and natural resources will eventually lead to ecological and economic collapse.

Question 16

The view that natural resources are important but not indispensable is held by ____.

Accepted Answer

The view that natural resources are important but not indispensable aligns with the perspective of neoclassical economists. They focus on the efficient allocation and use of resources and believe that technological advancements can substitute for exhaustible natural resources.

Question 17

Which type of economist views economic systems as subsystems of the biosphere that depend heavily on irreplaceable natural resources?

Accepted Answer

Ecological economists view economic systems as subsystems of the biosphere that depend heavily on irreplaceable natural resources. They focus on the relationship between the economy and the environment, rather than treating the environment as a separate entity.

Question 18

The ____ was deliberately designed to measure outputs, without taking into account their beneficial or harmful environmental impacts.

Accepted Answer

The gross domestic product (GDP) is a measure of the economic activity within a country, but it only takes into account monetary value and does not consider environmental or social factors. It is often criticized for overemphasizing economic growth at the expense of sustainability and other important factors.

Question 19

Perverse ____ can distort the economic playing field and create a huge economic incentive for resource depletion and environmental degradation.

Accepted Answer

Subsidies can distort the economic playing field by providing financial support that encourages overuse or depletion of resources, leading to environmental harm.

Question 20

The energy used to assemble the parts of a new electronic device is an example of a(n) ____.

Accepted Answer

The answer of The energy used to assemble the parts...

Quiz 17: Environmental Economics, Politics and Worldviews