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1 | |
What does the Ehrlich identity, I = P x A x T, seek to explain? |
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| | A) | the relationship between species diversity and island area |
| | B) | loss of income due to environmental regulations |
| | C) | population growth rate in developed countries |
| | D) | the relationship among population, economics, and the environment |
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2 | |
Which of the following is a true statement about world population growth? |
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| | A) | The current world population is approximately 4 billion. |
| | B) | World population is increasing, but at a decreasing rate. |
| | C) | World population is stable (not increasing or decreasing). |
| | D) | Most estimates predict population stabilization at around 50 million people. |
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3 | |
Which of the following is NOT an idea of neoclassical economics? |
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| | A) | Human welfare is maximized when people make economic choices based on social responsibility. |
| | B) | Value is driven by scarcity. |
| | C) | Economic growth is a perpetual and desirable condition of economic activity. |
| | D) | Natural capital and human capital are perfect substitutes. |
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4 | |
Which of the following is an example of an externality? |
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| | A) | a rise in the cost of gasoline because of decreased supply |
| | B) | increased human health costs because of pollution |
| | C) | a rise in the cost of electricity to account for effects of global warming |
| | D) | substitution of human capital for natural capital |
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5 | |
_____ resources are not protected by property rights or exchanged in markets. |
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| | A) | Regulated |
| | B) | Sustainable |
| | C) | Steady-state |
| | D) | Open-access |
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6 | |
Who wrote "The Tragedy of the Commons"? |
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| | A) | Rachel Carson |
| | B) | Michael Soul |
| | C) | Garrett Hardin |
| | D) | John Stuart Mill |
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7 | |
What is tragic about the "tragedy of the commons"? |
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| | A) | Herders fail in their attempts to restore a degraded pasture. |
| | B) | A group of herders, each acting in his own self-interest, destroy a shared pasture. |
| | C) | Livestock die after overgrazing a pasture. |
| | D) | One herder attempts to lay claim to a pasture and exclude all others. |
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8 | |
Neoclassical economics has been successful in: |
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| | A) | incorporating the costs of pollution into the prices of products whose production generated the pollution |
| | B) | setting appropriate values for nonrival and nonexclusive goods |
| | C) | explaining and predicting market-based economic activity |
| | D) | incorporating the reality of the physical environment |
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9 | |
How might the "tragedy of the commons" be averted? |
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| | A) | through government regulation |
| | B) | through cooperation among herders |
| | C) | through education |
| | D) | all of the above |
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10 | |
_____ was an English cleric whose "Essay on the Principle of Population" proposed that human populations are limited by environmental constraints. |
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| | A) | John Stuart Mill |
| | B) | Nicolas Georgescu-Roegen |
| | C) | Thomas Malthus |
| | D) | Charles Darwin |
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11 | |
______________ distinguishes among three types of economic growth (growth of biophysical throughput, production/income, and human welfare). |
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| | A) | Environmental economics |
| | B) | Steady-state economics |
| | C) | Classical economics |
| | D) | Neoclassical economics |
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12 | |
______ places the burden of proof on potential polluters to demonstrate that economic activity will not cause irreversible environmental damage. |
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| | A) | Neoclassical economics |
| | B) | The precautionary principle |
| | C) | The polluter pays principle |
| | D) | Government regulation |
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13 | |
Government regulation has resulted in: |
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| | A) | cooperation between regulators and potential polluters |
| | B) | the incorporation of environmental concerns into the culture of business |
| | C) | the collapse of markets for pollution-abatement devices |
| | D) | innovation in pollution-reduction technologies |
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14 | |
The ______ method of valuation assumes that people are willing to travel farther, spend more money, and make more trips to experience valuable environmental resources. |
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| | A) | willingness-to-pay |
| | B) | precautionary |
| | C) | travel cost method |
| | D) | cost-benefit analysis |
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15 | |
According to economist Herman Daly, a steady-state economy: |
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| | A) | develops but does not grow |
| | B) | grows but does not develop |
| | C) | simultaneously grows and develops |
| | D) | seeks to maximize throughput |
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16 | |
Name two ways of avoiding social traps. |
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17 | |
Name one government policy that would promote sustainable development. |
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18 | |
State two characteristics of sustainable development. |
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2003 McGraw-Hill Higher Education