Question 1

_________ theory emphasizes that many human problems can be understood as market failures.
A)Neoclassical economic
B)Social inequality
C)Rational choice
D)Game

Accepted Answer

Neoclassical economic theory argues that when individuals act in their own self-interest, they will make efficient decisions that benefit society as a whole. However, market failures occur when certain conditions are not met, such as when there is imperfect competition, externalities (costs or benefits that affect parties who did not choose to incur those costs or benefits), or public goods (goods that are non-excludable and non-rivalrous in consumption). These market failures can lead to issues such as economic inequality or environmental degradation, which can be seen as "human problems" in society. Therefore, neoclassical economic theory emphasizes that understanding and addressing these market failures can help solve many human problems.

Question 2

Rational choice theory suggests that which of the following would be most effective at reshaping consumer behavior to benefit the environment?
A)a series of tit-for-tat exchanges so that consumers can develop trust in social structures
B)an economy based on the Soviet Union's
C)persuasive appeals based on shame and guilt
D)policies that encourage free riding

Accepted Answer

Rational choice theory suggests that individuals make decisions based on their own self-interest. Therefore, tit-for-tat exchanges can help build trust in social structures and encourage individuals to behave in a way that benefits the environment. It appeals to their self-interest by presenting a clear benefit to cooperating with others for the greater good. The other options such as an economy based on Soviet Union's or policies that encourage free-riding will not provide the same benefit as A. Persuasive appeals based on shame and guilt may work for some individuals, but it may not be as effective as the other options based on the theory of rational choice.

Question 3

The _________ is known for representing the interests of transnational corporations (TNCs).
A)World Trade Organization
B)World Conservation Union
C)Global Environmental Facility
D)all of the above
E)none of the above

Accepted Answer

The World Trade Organization is a global organization that aims to promote free trade and investors across borders. It is known for representing the interests of transnational corporations (TNCs) as it operates as an open forum for discussions and negotiations between member countries to eliminate trade barriers such as tariffs and quotas. Its policies and agreements often benefit TNCs by allowing them to operate more freely and profitably in different countries. The other options listed do not have a primary focus on representing the interests of TNCs.

Question 4

Most conventional American economic theory is embedded in a _________ paradigm of ideas and assumptions.
A)systems resources
B)center-periphery
C)resource allocation
D)corporate

Accepted Answer

Most American economic theory is based on the assumption that resources are scarce and must therefore be efficiently allocated among competing needs and wants. This perspective is known as resource allocation theory. While systems resources, center-periphery, and corporate paradigms play a role in some economic theories, they are not as prevalent as resource allocation theory in the American context.

Question 5

Public policy-makers believe that the most effective way to "fix" wasteful consumption patterns is to:
A)rely on legal fixes because laws work faster than technical fixes.
B)get people to change their mindset,because people have to change the way they cognize the environment.
C)get people to change their behaviors.
D)use all four types of fixes simultaneously.

Accepted Answer

The most comprehensive approach to addressing wasteful consumption patterns involves using a combination of strategies, including legal, technical, cognitive, and behavioral changes. This multifaceted approach ensures that the issue is addressed from all angles, increasing the likelihood of effective and lasting solutions.

Question 6

Which country has eliminated all agricultural subsidies?
A)the U.S.
B)China
C)New Zealand
D)Germany

Accepted Answer

New Zealand is the country that has eliminated all agricultural subsidies, making it a highly competitive and market-oriented agricultural industry. The United States, China, and Germany still have significant agricultural subsidies in place.

Question 7

"Shadow prices" are developed by:
A)supply and demand.
B)bureaucrats or organizational experts.
C)marketplace outsiders.
D)black markets.

Accepted Answer

Shadow prices are developed by bureaucrats or organizational experts as a way to determine the economic value or opportunity cost of a resource or action. They are used in situations where market prices are not available or do not accurately reflect the true cost or value of a resource.

Question 8

An example of an "upstream" policy intervention in the economic production cycle would be:
A)energy efficient dishwashers and cars.
B)recycling.
C)clean air standards.
D)all of the above
E)none of the above

Accepted Answer

Energy efficient dishwashers and cars would impact the production cycle by reducing the energy required to produce and use these items, thereby reducing overall resource consumption and associated environmental impacts. While recycling and clean air standards may also be important policy interventions, they are not specifically focused on upstream impacts in the production cycle.

Question 9

Places like national parks and grasslands are considered to be:
A)private property resources.
B)common property resources.
C)non-renewable resources.
D)public property resources.

Accepted Answer

National parks and grasslands are owned and managed by the government, which makes them public property resources. They are established for the benefit and enjoyment of the public, and their protection and preservation are the responsibility of the government.

Question 10

Evidence supporting the notion that a "world society" is developing include(s):
A)denser ties between nation-states and the world society.
B)a global emphasis on human rights.
C)a global emphasis on environmentalism.
D)all of the above
E)none of the above

Accepted Answer

All three options provide evidence of a growing world society. Denser ties between nation-states and the world society demonstrate an increased interconnectedness and interdependence, while a global emphasis on human rights and environmentalism both suggest a shared concern for global issues and a move towards a collective responsibility for addressing them.

Question 11

Limitations to green consumerism include:
A)possible "rebound" effects.
B)hyperconsumerism that overwhelms meaningful gains.
C)individual consumer behavior.
D)all of the above
E)none of the above

Accepted Answer

Green consumerism alone may not be sufficient to achieve sustainable development as there are limitations to it such as possible rebound effects, where gains from reduced environmental impact are offset by increased consumerism, and hyperconsumerism, where the desire for green products leads to an overwhelming consumption that nullifies the meaningful gains. Individual consumer behavior is also a limitation as not all consumers may be willing or able to adopt green consumerism practices. Therefore, all of the above factors limit the effectiveness of green consumerism as a solution to achieve sustainable development.

Question 12

Rivers,air,and groundwater are considered to be:
A)private property.
B)common property.
C)government property.
D)public property.

Accepted Answer

The answer of Rivers,air,and groundwater are considered to be:
A)private property.
B)common...

Question 13

Relative to TEA (tradable environmental allowances),CRM (commons resource management) is:
A)larger.
B)more complex and interactive.
C)simpler,with a single focus.
D)more adaptive.

Accepted Answer

CRM is more complex and interactive as it involves managing and regulating the use of common resources, such as forests or fisheries, which involves multiple stakeholders and requires collaborative decision-making. TEAs, on the other hand, are a simpler concept focused on creating a market for environmental allowances that can be traded between businesses.

Question 14

The environmental policy system in the U.S.is _________ than those of Great Britain,France,and Japan.
A)driven more by stakeholder control
B)less "winner-take-all"
C)more coercive
D)driven more by shareholder control

Accepted Answer

The answer of The environmental policy system in the U.S.is...

Question 15

Which of the following is an example of a regulatory policy?
A)the 1872 Mining Act
B)the 1976 Clean Water Act
C)the 1992 Energy Policy Act
D)All of the above are regulatory policies.
E)None of the above are regulatory policies.

Accepted Answer

All the options listed (A: the 1872 Mining Act, B: the 1976 Clean Water Act, C: the 1992 Energy Policy Act) are examples of regulatory policies as they all involve regulations or rules established by the government to control or manage specific activities or industries.

Question 16

The city of Metropolis just installed synchronized traffic lights to minimize traffic jams and reduce commute times.This policy represents what type of "fix"?
A)legal
B)behavioral
C)cognitive
D)technical

Accepted Answer

The synchronized traffic lights are a technical fix, as it involves implementing a specific technology (synchronization) to improve traffic flow.

Question 17

In order to be environmentally effective,green taxes should be:
A)an effective source of revenue for the government.
B)revenue neutral.
C)phased in gradually.
D)a and c
E)b and c

Accepted Answer

Green taxes should be revenue neutral, meaning that any revenue generated should be used to offset other taxes or invest in environmental initiatives. Phasing in the taxes gradually can also help mitigate any negative impacts on consumers and businesses. Therefore, both option B and C are necessary for green taxes to be effective, making choice E the correct answer. A is not necessarily true as the effectiveness of green taxes should be measured by their ability to change behavior and incentivize eco-friendly actions, rather than just generating revenue for the government.

Question 18

Which of the following are used to calculate the most widely used human development indicator?
A)life expectancy at birth,literacy rates,and real GDP per person
B)life expectancy at birth,sex ratios,and net immigration
C)life expectancy at birth,national security,and GDP per person
D)GNP,literacy,and social equity

Accepted Answer

The most widely used human development indicator is the Human Development Index (HDI), which is calculated using life expectancy at birth, literacy rates, and real GDP per capita. These three dimensions reflect the basic aspects of human development: longevity, knowledge, and standard of living. Together, they provide a comprehensive measure of human well-being and help to compare development across countries.

Question 19

Which of the following are sources of market failures?
A)externalities
B)government subsidies
C)cost accounting problems
D)all of the above
E)none of the above

Accepted Answer

pg: 194

Question 20

The city of Metropolis has erected billboards around the city that proclaim,"If it's not in use-turn off the juice." This policy represents what type of "fix"?
A)legal
B)behavioral
C)cognitive
D)technical

Accepted Answer

The answer of The city of Metropolis has erected billboards...

Quiz 7: Transforming Structures: Markets and Politics

_________ theory emphasizes that many human problems can be understood as market failures.

Rational choice theory suggests that which of the following would be most effective at reshaping consumer behavior to benefit the environment?

The _________ is known for representing the interests of transnational corporations (TNCs) .

Most conventional American economic theory is embedded in a _________ paradigm of ideas and assumptions.

Public policy-makers believe that the most effective way to "fix" wasteful consumption patterns is to:

Which country has eliminated all agricultural subsidies?

"Shadow prices" are developed by:

An example of an "upstream" policy intervention in the economic production cycle would be:

Places like national parks and grasslands are considered to be:

Evidence supporting the notion that a "world society" is developing include(s) :

Limitations to green consumerism include:

Rivers,air,and groundwater are considered to be:

Relative to TEA (tradable environmental allowances) ,CRM (commons resource management) is:

The environmental policy system in the U.S.is _________ than those of Great Britain,France,and Japan.

Which of the following is an example of a regulatory policy?

The city of Metropolis just installed synchronized traffic lights to minimize traffic jams and reduce commute times.This policy represents what type of "fix"?

In order to be environmentally effective,green taxes should be:

Which of the following are used to calculate the most widely used human development indicator?

Which of the following are sources of market failures?

The city of Metropolis has erected billboards around the city that proclaim,"If it's not in use-turn off the juice." This policy represents what type of "fix"?