Download Environmental Economics Quiz: Questions and Answers and more Quizzes Environmental Economics in PDF only on Docsity!
ECON 2J03 Quiz 1 Questions and Answers_ 2025.
A small coastal community with the power to control access
to its scallop fishery is an example of.
Question 1 options: A. common property rights B. private property rights C. a positive externality D. an open access resource
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).
Question 2 options: A. positive externality; negative externality B. direct benefit; opportunity cost C. direct benefit; negative externality D. positive externality; opportunity cost
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.
Question 4 options: A. sustainable
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.
Question 5 options:
The residuals from production can be reduced by.
Question 7 options: A. shifting the composition of output towards low-residual items B. preventing pollution by reducing the energy inputs required to produce each unit of output C. reducing the residuals intensity of production
An accidental oil spill is an example of a(n)
emission while municipal treated waste is an example of
a(n) emission.
Question 8 options: A. continuous; episodic B. global; local
In the figure Below, (a) represents.
A. Bundle A D. all of the choices are correct C. episodic; continuous
In the following figure the total cost of producing the
th
unit of output is.
Question 12 options: A. $ B. $150, C. $212,
The following figure shows the impact of technological
change on the marginal cost of producing a certain good.
Producing Q* units with the new technology reduces total
cost by an amount equal to.
Question 13 options: A. area a B. area b
Suppose there are three firms in the market for a certain
good. Firm 1's marginal cost equation is MC = 4 + 0.25QS,
firm 2's marginal cost equation is MC = 0.5Q
S
and firm 3's
marginal cost equation is MC = 2 + Q
S
. What is the
aggregate supply equation for this market?
Question 15 options: A. QS^ = 4P - 16 B. QS^ = 7P - 18
The value of a good or service is measured by
Question 16 options: A. the willingness to pay B. the sacrifice a person experiences in terms of other goods C. the sacrifice a consumer experiences in generalized purchasing power D. all of the above
All of the following are difficulties with using demand curves
to estimate environmental benefits, except
Question 17 options: A. demand curves are constructed based on ability to pay. B. consumers are sometimes unaware of the benefits of environmental quality. C. downward sloping demand curves inaccurately imply declining benefits.
When production results in environmental degradation,
private firms do not take the into consideration
when making their output decisions resulting in.
Question 1 options: A. social costs; pollution B. market failure; an externality C. external costs; a market failure D. market failure; pollution
The value of a good or service is measured by
Question 3 options: A. the willingness to pay B. the sacrifice a person experiences in terms of other goods C. the sacrifice a consumer experiences in generalized purchasing power D. all of the above
The stock of natural and environmental resources that
sustain ecosystems, the economy and the well-being of
individuals is referred to as.
Question 4 options: A. renewable resources B. natural capital C. biological diversity D. ambient quality
In the case of open access resources and public goods, the
competitive market output level will be.
Question 5 options: A. equal to the socially efficient level of output B. unequal to the socially efficient level of output
In the figure Below, (a) represents.
Question 6 options: A. the extraction of resources from nature
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.
Question 7 options: A. adaption B. the precautionary principle
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).
Question 9 options: A. positive externality; negative externality
time is.
Question 14 options:
An accidental oil spill is an example of a(n)
emission while municipal treated waste is an example of
a(n) emission.
Question 16 options: A. continuous; episodic
Technological progress.
Question 17 options:
In the Table below, social MWTP equals private MWTP plus
external benefits from production. In this market, the
socially efficient level of output is.
Quantity Private MWTP External Benefits Social MWTP Marginal Cost Q1 12 5 17 4 Q2 11 5 16 5 Q3 8 4 12 8 Q4 5 4 9 9 Q5 4 4 8 10 Question 18 options: A. Q 2 B. Q 3 A. sustainable C. episodic; continuous A. results in a downward shift of the marginal cost curve
C. Q 4
A small coastal community with the power to control access
to its scallop fishery is an example of.
Question 20 options: A. common property rights
