and Policy | Questions and Answers | Fall 2025/2026
Update | 100% Correct.
1. Sustainable development is best defined as:
A. Economic growth without regulation
B. Development that protects future generations
C. Eliminating all natural resource use
D. Business expansion only
Answer: B
Solution: Sustainable development balances present needs with future environmental
protection.
2. A carbon tax is intended to:
A. Reward polluters
B. Increase fossil fuel subsidies
C. Raise the cost of emitting greenhouse gases
D. Prevent renewable energy investment
Answer: C
Solution: By making emissions costly, carbon taxes encourage pollution reduction.
3. The Triple Bottom Line includes:
A. Profit only
B. People, Planet, Profit
C. Politics, Power, Price
D. Production, Profit, Purpose
Answer: B
Solution: TBL integrates social, environmental, and economic performance.
4. “Greenwashing” refers to:
,A. Genuine environmental innovation
B. Overstating environmental efforts
C. Recycling industrial waste
D. Solar power adoption
Answer: B
Solution: Greenwashing is misleading marketing about being environmentally responsible.
5. A cap-and-trade system is an example of:
A. Command-and-control regulation
B. Market-based environmental policy
C. Fossil fuel subsidy
D. Non-renewable resource pricing
Answer: B
Solution: Cap-and-trade uses market incentives to reduce emissions.
6. Life-cycle assessment (LCA) evaluates:
A. Only product price
B. Impacts from production to disposal
C. Business profitability
D. Marketing effectiveness
Answer: B
Solution: LCA analyzes environmental impact across a product’s entire life span.
7. The “polluter pays principle” requires:
A. Taxpayers to pay for pollution
B. Consumers to compensate companies
C. Polluters to bear cleanup costs
D. Governments to fully fund mitigation
Answer: C
Solution: It ensures environmental costs are paid by those who cause harm.
8. A renewable resource is:
,A. Coal
B. Natural gas
C. Solar energy
D. Uranium
Answer: C
Solution: Solar energy replenishes naturally and cannot be depleted.
9. A firm using waste from one company as raw material for another is
practicing:
A. Greenwashing
B. Industrial symbiosis
C. Resource hoarding
D. Environmental negligence
Answer: B
Solution: Industrial symbiosis shares waste streams to reduce overall impact.
10. Environmental externalities represent:
A. Internal accounting costs
B. Costs not reflected in product prices
C. Mandatory reporting fees
D. Government subsidies
Answer: B
Solution: Externalities are unpriced environmental impacts borne by society.
11. A company installing energy-efficient equipment is improving:
A. Labor efficiency
B. Energy efficiency
C. Waste collection
D. Government taxes
Answer: B
Solution: Efficiency upgrades reduce energy use for the same output.
12. Biodiversity loss is primarily caused by:
, A. Digital technology
B. Habitat destruction
C. Low tax rates
D. International trade
Answer: B
Solution: Clearing land removes habitats and reduces species populations.
13. The precautionary principle recommends:
A. Avoiding action until science is certain
B. Taking action when there is a risk of serious harm
C. Investing only in fossil fuels
D. Ignoring environmental risks
Answer: B
Solution: It promotes prevention even without full scientific certainty.
14. Carbon neutrality means:
A. No economic growth
B. Emissions equal emissions removed
C. Zero energy consumption
D. No transportation
Answer: B
Solution: Neutrality occurs when emissions are balanced by offsets/removals.
15. A company that reports its emissions transparently is practicing:
A. Environmental obfuscation
B. Sustainability disclosure
C. Tax avoidance
D. Overproduction
Answer: B
Solution: Disclosures make environmental performance visible to stakeholders.
16. The circular economy focuses on: