978-0133832396 Chapter 5

Chapter 5

Velasquez Test Bank

MULTIPLE CHOICE

1. From which external environment does a corporation draw the raw materials needed for a

finished product?

a. Consumer

b. Natural

c. Competition

d. Social

2. According to Michael Renner from the Worldwatch Institute’s State of the World 2015

report, what is driving most of our environmental problems?

a. Economic growth

b. Landfill growth

c. Income growth

d. Technology growth

3. Which of the following describes the undesirable contamination of the environment by

human activities?

a. Resource depletion

b. Greenhouse effect

c. Pollution

d. Global warming

Learning Objective 5.1: Identify environmental threats related to the production of consumer

goods

Skill Level: Apply what you know

Difficulty Level: Moderate

4. Which of the following absorbs and holds heat from the sun, thereby contributing to the

heating of the atmosphere?

a. Global warming

b. Acid rain

c. Chlorofluorocarbons

d. Greenhouse gases

5. Which of the following is considered to be one of the most prevalent sources of the six most

common forms of air pollution, affecting the air we breathe, human health, and the environment,

and creating property damage?

a. Airborne toxins produced by carcinogens such as cigarette smoke

b. Acid rain produced by burning sulfur from resources such as coal

c. Chlorofluorocarbons produced by items such as refrigerators and air conditioners

d. Gases and particulates produced by automobiles

6. Which of the following is the main source of greenhouse gas emissions?

a. Power generation

b. Farming

c. Oil drilling and processing

d. Industrial processes

7. Which of the following describes the belief that concern for nature should be based on how

the environment affects the interests of human beings?

a. Ecological ethics

b. Utilitarianism

c. Teleological center of life

d. Anthropocentric views

8. Which of the following describes the view that we have a moral obligation to protect

nonhuman parts of the environment simply because they deserve to be protected?

a. Anthropocentric values

b. Ecological ethics

c. Absolute bans

d. Teleological ethics

9. Who claimed that a livable environment is not just something we would like to have, rather,

it is something others have a duty to allow us to have?

a. Paul Taylor

b. Albert Schweitzer

c. William Blackstone

d. Aldo Leopold

10. Which of the following describes the external price that must be paid by those in surrounding

communities when pollutants are generated?

a. Private costs

b. Divergent costs

c. Market costs

d. Social costs

11. Which of the following is an ethical deficiency that can occur when a market is no longer

allocating resources or distributing commodities in a way that maximizes utility?

a. Society will prevent overproduction, thereby limiting resources being consumed.

b. Goods become more efficiently distributed to consumers as external costs become

differentiated.

c. Firms that do not have to pay external costs use up and waste resources being consumed by

external costs.

d. The overproduction of a commodity results in the production of other commodities, creating

greater demand.

12. Which of the following is an ethical market approach to environmental protection?

a. Humans have a right to a livable environment.

b. Nonhumans have intrinsic value and must be protected.

c. There are not remedies for justice when internalizing the cost of environmental protection.

d. External costs violate utility, rights, and justice, so they should be internalized.

13. How can producers remedy external costs of production when they internalize the costs of

pollution?

a. By absorbing the cost when determining the price of its goods

b. By imposing the costs to a third-party polluting agent

c. By practicing lessons of the precautionary principle

d. By maximizing the rule of probability theory

Difficulty Level: Moderate

14. Which of the following is one way producers can internalize the external costs of pollution?

a. By determining who is receiving benefits from the pollution and increasing costs to that

group

b. By using pollution-control devices and stopping pollution at its source

c. By incorporating distributive justice and distributing the cost of pollution to all

d. By increasing rates for those nearest the source of the pollution

15. When organizations pollute the local community, _____ occurs as housing values decline,

wealthy owners move, and neighborhoods become inhabited by the poor.

a. environmental racism

b. internalizing external costs

c. environmental injustice

d. distributive justice

16. Which of the following says that if a practice carries an unknown risk of unknown

proportions, the practice should be rejected until the risk is nonexistent or insignificant?

a. Informed consent

b. Utilitarian approach

c. Maximum rule of probability theory

d. Precautionary principle

17. Which of the following claims that only when patterns of hierarchy and domination change

will we be able to deal with environmental crises?

a. Social ecology

b. Ecofeminism

c. Ethics of caring

d. Lockean principle

18. Which of the following supports the idea of replacing the destruction of nature with the idea

of nurturing our relationships with nature and all living things?

a. Social ecology

b. Ecofeminism

c. Ethic of caring

d. Lockean principle

19. According to the utilitarian approach to pollution removal, how do costs of removal

determine the optimal level of removal?

a. Costs of removal still allow for satisfactory stakeholder profits.

b. Costs of removal equal the benefits received by removal.

c. Costs of removal become reduced through the use of technology.

d. Costs of removal are lower than the unknown risks of removal.

20. Which of the following refers to saving or rationing natural resources so they can be used at a

later date?

a. Conservation

b. Depletion

c. Ecological ethics

d. Sustainability

Difficulty Level: Moderate

21. Which of the following best exemplifies the Lockean principle?

a. Future generations do not now exist and may never exist.

b. The current generation is required to increase sustainability for the next generation.

c. Because we do not know the interests of future generations, we cannot say what rights they

have.

d. Each generation should leave enough and as good for others.

22. According to William Shepherd and Clair Wilcox, businesses in markets have developed a

view of future scarcity of resources based on the idea that

a. businesses consume resources quickly before their competitors have a chance.

b. even though businesses cannot predict the future, they should still ensure resources will

always be available.

c. businesses will consider externalities and will strive to protect resources.

d. the only means of conserving for the future appears to be in the hands of stakeholders.

23. Which of the following best describes sustainability?

a. Giving our immediate successors a world in better condition than it is now

b. The present generation’s need to sacrifice for future generations’ rights

c. The saving or rationing of natural resources for later us

d. The capacity something has to continue to function into the future

24. According to E. F. Schumacher, if we do not preserve enough nonrenewable resources,

future generations will have to _____ in order to maintain their quality of life at a level similar to

ours.

a. switch from using capital-intensive technologies to more labor-intensive technologies

b. have a goal of decreasing production until a steady state is achieved

c. maintain a population where wealth is maintained at a minimal but constant level

d. limit physical production and consumption to the lowest feasible level

25. Which of the following is implied by environmental sustainability?

a. The capacity of resources must continue to meet the needs of present generations.

b. Future generations will have to find ways to meet their own needs through the use of

technology.

c. Humanity should not deplete renewable resources faster than we can replace them.

d. Environmental, economic, and social sustainability are all interrelated.

SHORT ANSWER

26. How does acid rain affect the environment?

27. Discuss the various effects of climate change.

28. Discuss how William Blackstone’s views on environmental rights have been supported by

federal law.

29. Discuss how pollution violates the justice or fairness that characterizes a competitive free

market.

30. Discuss how internalizing the external cost of pollution is consistent with the requirements of

retributive and compensatory justice.

Sample Answer: Retributive justice requires that those who are responsible for and benefit from

an injury, such as pollution, should bear the burdens of correcting the injury. Compensatory

justice requires that those who have been injured, such as those whose environment are being

polluted, should be compensated by those who injure them. These requirements imply that the

cost of pollution control should be paid by those who create the pollution and who have

benefited from the pollution activities. Also, the benefits of pollution control should flow to

those who have had to bear the external costs of pollution. Internalizing external costs seems to

meet the two requirements: the costs of pollution control are borne by stockholders and

customers, both of whom benefit from the polluting activities of the firms, and second, the

benefits of pollution control flow to those neighbors who once had to put up with the firm’s

pollution.

Topic: Remedies as Duties of the Firm

Learning Objective 5.3: Assess the approaches to internalizing the external costs of pollution

31. Discuss the concept of ecofeminism.

32. Discuss the utilitarian argument for conserving and preserving natural resources for future

generations.

33. Discuss the three pillars of sustainability.

possible only if the other areas are sustainable. Our lifestyles and consumption patterns, as well

our economic practices (such as the way we manufacture and use resources) all affect the

environment. For example, we can pursue economic growth through manufacturing that depletes

our natural resources, while the depletion of the environmental resources can limit or prevent us

from pursuing economic growth. Our lifestyles teach us to consume things that harm the

environment, and social sustainability requires creating societies that allow us to develop

cultures, communities, and ways of life that respect environmental sustainability, allowing the

environment to continue to provide things we need for survival.

Topic: The Ethics of Conserving Resources

Learning Objective: 5.4: Evaluate the ethics related to the conservation of resources for future

generations