ECON 2100 TEST 1 DINKAR KUCHIBHOTLA
True or False? Economists use models to test theories about economic relationships
and make predictions about behavioral and institutional reactions to changes in market
conditions. - Answer -ZTrue
At a fundamental level, pollution is the result of production and consumption decisions
made by
A. both households and firms
B. neither firms nor individuals
C. firms
D. individuals - Answer -ZBoth households and firms
A circular flow model involves flows of economic activity through
A. factor and output markets
B. factor market
C. neither factor nor output markets
D. output market - Answer -ZFactor and output markets
In the Materials Balance Model, an increase in population (holding all else constant) will
lead to ____ extraction of natural resources. Pick the answer choice that best fits.
A. lesser
B. no change
C. greater
D. can't be determined - Answer -ZGreater
In the Materials Balance Model, by recycling, it is possible to prevent the flow of
residuals back into nature?
A. True
B. False
C. Maybe
D. Don't know - Answer -ZFalse
Anthropogenic pollutants (resulting from human activity) are of ____ concern for
environmental economics compared with natural pollutants.
A. lesser
B. no concern
C. least concern
D. greater - Answer -ZGreater
Allocative efficiency
A. is not relevant to environmental policy.
B. calls for the equality of additional benefits and additional costs.
C. is automatically achieved when cost-effectiveness is achieved.
, D. requires that the total costs to society linked to environmental policy are equivalent to
the associated total benefits. - Answer -ZCalls for the equality of additional benefits and
additional costs.
Environmental Economics
A. is concerned mainly with the residual flow from economic activity back to nature.
B. focuses on the flow of resources from nature to economic activity.
C. recognizes that the flow of residuals back to nature is completely preventable.
D. none of these. - Answer -ZIs concerned mainly with the residual flow from economic
activity back to nature.
According to the second law of thermodynamics
A. nature's capacity to convert matter and energy is limited.
B. nothing is lost in the conversion of materials from economic activity into other forms
of matter and energy.
C. matter and energy can be neither created nor destroyed.
D. none of these. - Answer -ZNature's capacity to convert matter and energy is limited.
Acid rain (Acidic deposition) is an example of
A. global pollution
B. regional pollution
C. local pollution
D. natural pollution - Answer -ZRegional Pollution
A coal based power generation plant is an example of _____ of pollution.
A. a stationary source
B. a mobile source
C. a nonpoint source
D. none of the above - Answer -ZA stationary source
The National Environmental Protection Act (NEPA) of 1969
A. calls for Environmental Impact Statements (EIS) on major legislative proposals
B. directs integration of environmental tasks among federal agencies
C. guides all environmental policy formulation in the United States
D. all of the above - Answer -ZAll of the above
If the consumption of a good by one consumer reduces the availability of that good for
consumption by another consumer, and the benefits of consumption of that good are
non exclusive to a consumer then such a good is a private good.
True or False - Answer -ZFalse
A change in demand for a good is the result of a change in the (current) price of that
good.
True or False - Answer -ZFalse
Consider the following demand equation for an individual:
True or False? Economists use models to test theories about economic relationships
and make predictions about behavioral and institutional reactions to changes in market
conditions. - Answer -ZTrue
At a fundamental level, pollution is the result of production and consumption decisions
made by
A. both households and firms
B. neither firms nor individuals
C. firms
D. individuals - Answer -ZBoth households and firms
A circular flow model involves flows of economic activity through
A. factor and output markets
B. factor market
C. neither factor nor output markets
D. output market - Answer -ZFactor and output markets
In the Materials Balance Model, an increase in population (holding all else constant) will
lead to ____ extraction of natural resources. Pick the answer choice that best fits.
A. lesser
B. no change
C. greater
D. can't be determined - Answer -ZGreater
In the Materials Balance Model, by recycling, it is possible to prevent the flow of
residuals back into nature?
A. True
B. False
C. Maybe
D. Don't know - Answer -ZFalse
Anthropogenic pollutants (resulting from human activity) are of ____ concern for
environmental economics compared with natural pollutants.
A. lesser
B. no concern
C. least concern
D. greater - Answer -ZGreater
Allocative efficiency
A. is not relevant to environmental policy.
B. calls for the equality of additional benefits and additional costs.
C. is automatically achieved when cost-effectiveness is achieved.
, D. requires that the total costs to society linked to environmental policy are equivalent to
the associated total benefits. - Answer -ZCalls for the equality of additional benefits and
additional costs.
Environmental Economics
A. is concerned mainly with the residual flow from economic activity back to nature.
B. focuses on the flow of resources from nature to economic activity.
C. recognizes that the flow of residuals back to nature is completely preventable.
D. none of these. - Answer -ZIs concerned mainly with the residual flow from economic
activity back to nature.
According to the second law of thermodynamics
A. nature's capacity to convert matter and energy is limited.
B. nothing is lost in the conversion of materials from economic activity into other forms
of matter and energy.
C. matter and energy can be neither created nor destroyed.
D. none of these. - Answer -ZNature's capacity to convert matter and energy is limited.
Acid rain (Acidic deposition) is an example of
A. global pollution
B. regional pollution
C. local pollution
D. natural pollution - Answer -ZRegional Pollution
A coal based power generation plant is an example of _____ of pollution.
A. a stationary source
B. a mobile source
C. a nonpoint source
D. none of the above - Answer -ZA stationary source
The National Environmental Protection Act (NEPA) of 1969
A. calls for Environmental Impact Statements (EIS) on major legislative proposals
B. directs integration of environmental tasks among federal agencies
C. guides all environmental policy formulation in the United States
D. all of the above - Answer -ZAll of the above
If the consumption of a good by one consumer reduces the availability of that good for
consumption by another consumer, and the benefits of consumption of that good are
non exclusive to a consumer then such a good is a private good.
True or False - Answer -ZFalse
A change in demand for a good is the result of a change in the (current) price of that
good.
True or False - Answer -ZFalse
Consider the following demand equation for an individual:
