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Summary Test bank for Environmental Economics and Management: Theory, Policy, and Applications 6th Edition by Scott J. Callan

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CHAPTER 1
The Role of Economics in Environmental Management

TRUE-FALSE

1. In the Circular Flow Model, money flows are disregarded.

Answer: F

2. Within the Circular Flow Model, households are assumed to be the owners of all factors
of production, including the natural resources.

Answer: T

3. Residuals are by-products, or pollution, left in the environment after a technological or
natural process as occurred.

Answer: T

4. The discipline concerned with the resource flow from economic activity back to nature is
known as natural resource economics.

Answer: F

5. According to the first law of thermodynamics, matter and energy can be destroyed but
not created.

Answer: F

6. Nature’s capacity to convert matter and energy is limitless.

Answer: F

7. According to BMW Group, plastics are among the simplest materials to recycle.

Answer: F

8. Natural pollutants are those linked to human activity.

Answer: F

9. Chemical wastes associated with the manufacturer of solvents are anthropogenic
pollutants.

Answer: T

10. An airplane is a point source of pollution.

Answer: T




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11. Runoff from urban streets is an example of nonpoint source pollution.

Answer: T

12. Since acidic deposition arises around the world, it is considered to be global pollution.

Answer: F

13. The warmer temperatures in the Gulf of Mexico may have increased the magnitude and
extent of the damages linked to the Gulf oil spill in 2010.

Answer: F

14. When scientists first identified the ‘ozone hole’ over the Antarctic region in the 1980s, it
was less than 10 miles in diameter.

Answer: F

15. Concern for managing natural resources to ensure their quality and abundance for future
generations is called sustainable development.

Answer: T

16. Proponents of an environmentally adjusted measure of national income believe that
environmental pollution linked to production should be recorded as a loss in the system
of national accounts (SNA).

Answer: T

17. Improvements made to China’s environment in preparation for the Olympic Games in
2008 have been maintained and even enhanced over time.

Answer: F

18. The economic criteria concerned with minimizing resource use to achieve an objective is
known as allocative efficiency.

Answer: F

19. Setting an air quality standard is an example of a command and control approach to
improving the environment.

Answer: T

20. A tax imposed on emissions is an example of the market approach to pollution control.

Answer: T




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