Chapter 1
1.
A(n) ________ in the economic world is something that leads people to channel their production
and consumption efforts in a specific direction.
A. moral obligation
B. economic incentive
C. property right
D. ethical motive
2.
Any economic system will produce destructive environmental impacts if the ________ within the
system are not structured to avoid them.
A. ethics
B. prices
C. property rights
D. incentives
3.
A small coastal community with the power to control access to its scallop fishery is an example
of ________.
A. common property rights
B. private property rights
C. an open access resource
D. a positive externality
4.
A common pasture on which anyone is allowed to freely graze sheep or cattle is an example of
________.
A. private property rights
B. an open access resource
C. common property rights
D. community property rights
5.
The ________ level of pollution can be negotiated privately based on property rights when only
a few parties are involved and the source, amount and type of pollution is clearly identifiable.
A. cost-effective
B. zero-emissions
C. fair
D. socially efficient
6.
When you enjoy the view of your neighbour's prize-winning garden, this is an example of
________.
A. common property rights
B. a positive externality
C. a negative externality
D. a public good
,7.
When we drive our cars, we get the ________ of transportation services, while others
experience the detrimental effects such as pollution and congestion which environmental
economists refer to as a(n) ________.
A. positive externality; negative externality
B. direct benefit; opportunity cost
C. direct benefit; negative externality
D. positive externality; opportunity cost
8.
The number of kilometres a household drives its vehicles each year is determined by its
________ of driving.
A. opportunity cost
B. private cost
C. social cost
D. external cost
9.
Forests, wetlands and oceans are referred to as ________ because of their ability to absorb
CO2
A. carbon sources
B. carbon stores
C. carbon cycles
D. carbon sinks
10. The largest source of anthropogenic greenhouse gas emissions globally comes from
________.
A. electricity generation and heat
B. transportation
C. agriculture
D. coal mining
11. When considering strategies to mitigate the impact of climate change, the concept that
society should consider the trade-off between the cost of preventive measures taken today
versus the benefits arising from reduced future risk is known as ________.
A. adaption
B. the precautionary principle
C. benefit-cost analysis
D. climate modeling
,12. A tax on carbon emissions, standards to improve the energy efficiency of vehicles and
appliances and policies that promote solar and wind energy are all examples of ________.
A. the precautionary principle
B. adaption
C. carbon trading
D. greenhouse gas mitigation policies
13. An economy that has the ability to allow the level of people's well-being to rise or at least
remain constant over time is ________.
A.
sustainable
B.
equitable
C.
self-perpetuating
D.
efficient
14.
In the following figure, the mix of carbon-intensive goods and environmental quality given by
________ provides society with the highest possible level of well-being.
A.
bundle A
B.
bundle B
C.
bundle C
D.
none of the choices are correct
15. Economic efficiency is the only criterion used by environmental economists to evaluate
environmental policies.
False
16.
People make the decision to pollute or not based on the incentives that arise from the set of
economic and social institutions under which they find themselves.
True
17.
Only profit-motivated corporations are responsible for pollution.
False
, 18.
Environmental resources generally have well defined property rights.
False
19.
Anthropogenic sources of carbon dioxide include volcanic activity, decaying plant matter and
photosynthesis.
False
20.
Coal-fired plants are a major source of greenhouse gas emissions in the electricity sector
worldwide.
True
21.
Climate change models have predicted an increase in the earth's temperature, greater climate
variability and more extreme weather events in the 21st century if greenhouse gas emissions
from human activity continue to be emitted at their current pace.
True
22.
The production possibility frontier showing the trade-offs between production of high-carbon
goods and environmental quality for a certain region never changes.
False
Chapter 2
1.
Mineral stocks, fisheries and water are all examples of ________.
A. renewable resources
B. non-renewable resources
C. natural resource capital
D. environmental capital
2.
The stock of natural and environmental resources that sustain ecosystems, the economy and
the well-being of individuals is referred to as ________.
A. renewable resources
B. biological diversity
C. ambient quality
D. natural capital
1.
A(n) ________ in the economic world is something that leads people to channel their production
and consumption efforts in a specific direction.
A. moral obligation
B. economic incentive
C. property right
D. ethical motive
2.
Any economic system will produce destructive environmental impacts if the ________ within the
system are not structured to avoid them.
A. ethics
B. prices
C. property rights
D. incentives
3.
A small coastal community with the power to control access to its scallop fishery is an example
of ________.
A. common property rights
B. private property rights
C. an open access resource
D. a positive externality
4.
A common pasture on which anyone is allowed to freely graze sheep or cattle is an example of
________.
A. private property rights
B. an open access resource
C. common property rights
D. community property rights
5.
The ________ level of pollution can be negotiated privately based on property rights when only
a few parties are involved and the source, amount and type of pollution is clearly identifiable.
A. cost-effective
B. zero-emissions
C. fair
D. socially efficient
6.
When you enjoy the view of your neighbour's prize-winning garden, this is an example of
________.
A. common property rights
B. a positive externality
C. a negative externality
D. a public good
,7.
When we drive our cars, we get the ________ of transportation services, while others
experience the detrimental effects such as pollution and congestion which environmental
economists refer to as a(n) ________.
A. positive externality; negative externality
B. direct benefit; opportunity cost
C. direct benefit; negative externality
D. positive externality; opportunity cost
8.
The number of kilometres a household drives its vehicles each year is determined by its
________ of driving.
A. opportunity cost
B. private cost
C. social cost
D. external cost
9.
Forests, wetlands and oceans are referred to as ________ because of their ability to absorb
CO2
A. carbon sources
B. carbon stores
C. carbon cycles
D. carbon sinks
10. The largest source of anthropogenic greenhouse gas emissions globally comes from
________.
A. electricity generation and heat
B. transportation
C. agriculture
D. coal mining
11. When considering strategies to mitigate the impact of climate change, the concept that
society should consider the trade-off between the cost of preventive measures taken today
versus the benefits arising from reduced future risk is known as ________.
A. adaption
B. the precautionary principle
C. benefit-cost analysis
D. climate modeling
,12. A tax on carbon emissions, standards to improve the energy efficiency of vehicles and
appliances and policies that promote solar and wind energy are all examples of ________.
A. the precautionary principle
B. adaption
C. carbon trading
D. greenhouse gas mitigation policies
13. An economy that has the ability to allow the level of people's well-being to rise or at least
remain constant over time is ________.
A.
sustainable
B.
equitable
C.
self-perpetuating
D.
efficient
14.
In the following figure, the mix of carbon-intensive goods and environmental quality given by
________ provides society with the highest possible level of well-being.
A.
bundle A
B.
bundle B
C.
bundle C
D.
none of the choices are correct
15. Economic efficiency is the only criterion used by environmental economists to evaluate
environmental policies.
False
16.
People make the decision to pollute or not based on the incentives that arise from the set of
economic and social institutions under which they find themselves.
True
17.
Only profit-motivated corporations are responsible for pollution.
False
, 18.
Environmental resources generally have well defined property rights.
False
19.
Anthropogenic sources of carbon dioxide include volcanic activity, decaying plant matter and
photosynthesis.
False
20.
Coal-fired plants are a major source of greenhouse gas emissions in the electricity sector
worldwide.
True
21.
Climate change models have predicted an increase in the earth's temperature, greater climate
variability and more extreme weather events in the 21st century if greenhouse gas emissions
from human activity continue to be emitted at their current pace.
True
22.
The production possibility frontier showing the trade-offs between production of high-carbon
goods and environmental quality for a certain region never changes.
False
Chapter 2
1.
Mineral stocks, fisheries and water are all examples of ________.
A. renewable resources
B. non-renewable resources
C. natural resource capital
D. environmental capital
2.
The stock of natural and environmental resources that sustain ecosystems, the economy and
the well-being of individuals is referred to as ________.
A. renewable resources
B. biological diversity
C. ambient quality
D. natural capital
