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Chapter 17 - Environmental Economics - Politics - and Worldviews
True / False
1. Stewardship is based on an idea that nature exists for all species alike and our success depends on how well we manage
the earth and nature.
a.
True
b.
False
2. Some research has suggested that many toxic waste sites in white communities have been cleaned up faster and more
completely than similar sites in African American and Latino communities have.
a.
True
b.
False
3. The majority of neoclassical economists would be expected to adopt a lifestyle of voluntary simplicity because of our
limited resources.
a.
True
b.
False
4. The cap-and-trade approach to pollution reduction means that permit holder not using their entire allocation can save
credits for future expansion.
a.
True
b.
False
5. Ecological economists tend to view human economic systems as subsystems of the biosphere.
a.
True
b.
False
6. The Biosphere 2 experiment showed that science is very capable of engineering sustainable ecological systems.
a.
True
b.
False
7. In a truly free-market economic system, all economic decisions are governed solely by democracy and principles of
individual's freedom to choose.
a.
True
b.
False
8. Natural, human, and manufactured capital are the three types of capital used in most economic systems.
a.
True
b.
False
9. Technological advances can always be relied upon to provide solutions to our environmental problems.
a.
True
b.
False
10. Ecological economists consider natural capital to be important but not indispensable because they believe we can find
substitutes for essentially any resource that we might deplete or degrade.
a.
True
b.
False
11. Environmental economists favor adjusting existing economic policies and tools to be more environmentally beneficial.
a.
True
b.
False
12. The genuine progress indicator, or GPI, takes into account the harmful environmental and social costs of all
transactions.
a.
True
b.
False
13. Many analysts think that the tax systems in most countries are somewhat backward because they discourage jobs,
income, and profit-driven innovation.
a.
True
b.
False
14. One approach to working toward more environmentally beneficial economies is to sell certain products that replace
the need for services.
a.
True
b.
False
15. Some believe that fighting forces and weaponry will become less useful toward national security because of
environmental degradation.
a.
True
Chapter 17 - Environmental Economics - Politics - and Worldviews
b.
False
16. Most democratic governments have taken on features that increase their ability to deal with environmental problems.
a.
True
b.
False
17. The precautionary principle states that we should make decisions that help to prevent a problem from occurring or
becoming worse.
a.
True
b.
False
18. The holistic principle states that we should recognize that the environmental and other problems we face are
connected.
a.
True
b.
False
19. History shows that significant change usually comes from the bottom up when individuals join together to bring about
change.
a.
True
b.
False
20. A way that individuals can provide environmental leadership is to purchase and eat food that has been sustainably
produced.
a.
True
b.
False
21. Since 1980, a well-organized and well-funded movement has mounted a strong campaign to weaken or repeal existing
U.S. environmental laws and regulations and to change the ways in which public lands are used.
a.
True
b.
False
22. A potential problem to finding solutions to our environmental problems is that the message of environmental
degradation often carries a negative tone that turns off many people.
a.
True
b.
False
23. Less than 10% of the U.S. public considers the environment to be one of the nation’s most pressing problems.
a.
True
b.
False
24. Less than 10% of the U.S. public considers the environment to be one of the nation’s most pressing problems.
a.
True
b.
False
25. According to the WWF Global Footprint Network, if everyone in the world used resources equal to what the average
American uses, we would need ____.
a.
to share resources equally in order to survive
b.
more oil and gas than is available
c.
more energy efficiency
d.
about five planet earths to support them
e.
more sustainable energy
26. China’s ____, has grown to roughly 300 million, which is a number almost equal to the U.S. population.
a.
consumer middle class
b.
military
c.
poor
d.
working class
e.
upper wealthy class
27. In a market-based economic system, economic decisions about prices are controlled by ____.
a.
supply and demand
b.
the government
c.
past customs and experience
d.
the banks
e.
full-cost pricing
28. Which type of economist views economic systems as subsystems of the biosphere that depend heavily on irreplaceable
natural resources?
a.
neoclassical
b.
ecological
c.
environmental
Chapter 17 - Environmental Economics - Politics - and Worldviews
d.
classical
e.
full-cost
29. The ecological economist believes that conventional economic growth will eventually ____.
a.
pull us out of our dependence on Middle Eastern oil
b.
lead us into a socialist economy
c.
become unsustainable because it will deplete natural capital
d.
lead us into a sustainable economy
e.
collapse when oil runs out
30. The view that natural resources are important but not indispensable is held by ____.
a.
environmental economists
b.
ecological economists
c.
Eastern European economists
d.
neoclassical economists
e.
classical economists
31. The central view of neoclassical economists is that economic growth is ____.
a.
the only path to a truly free-market system
b.
the natural solution to many problems
c.
paramount to all other concerns
d.
limited by resource availability
e.
unlimited, regardless of resource limitations
32. What kind of economist favors adjusting existing economic policies and tools to be more environmentally beneficial
over inventing all-new policies and tools?
a.
ecological economist
b.
environmental economist
Chapter 17 - Environmental Economics - Politics - and Worldviews
c.
neoclassical economist
d.
neoconservative economist
e.
classical economist
33. What is an internal cost of driving a domestic car?
a.
air pollution and litter
b.
cost of manufacture
c.
highway accidents
d.
health costs
e.
hazardous wastes produced by car exhaust
34. Some experts cite the failure to include the harmful environmental costs in the ____ of the goods and services as one
of the major causes of the environmental problems we face.
a.
stock prices
b.
indirect prices
c.
partial-cost prices
d.
market prices
e.
full-cost prices
35. A necessary result of implementing ____ is that some producers of harmful products and services would go out of
business.
a.
full-cost pricing
b.
environmental regulations
c.
pollution taxes
d.
government subsidies
e.
ecological policies
36. Perverse ____ can distort the economic playing field and create a huge economic incentive for resource depletion and
Chapter 17 - Environmental Economics - Politics - and Worldviews
environmental degradation.
a.
subsidies
b.
tax incentives
c.
full-cost pricing
d.
regulations
e.
lobbying
37. The economically and politically powerful interests that receive perverse subsidies spend a lot of time and money on
____, thus shifting to non-perverse subsidies would be difficult.
a.
lobbying
b.
lawyers
c.
bribes
d.
policies
e.
politicians
38. The ____ was deliberately designed to measure outputs, without taking into account their beneficial or harmful
environmental impacts.
a.
free market
b.
market pricing structure
c.
gross domestic product
d.
genuine progress indicator
e.
government subsidy system
39. How do proponents suggest we implement a tax shift to green taxes, which transfers taxes from income and wealth to
pollution and environmental degradation?
a.
It should be enacted immediately in order to do any good.
b.
It should only apply to developed countries.
c.
It should include tax breaks.
d.
In some cases both pollution and income/wealth should be taxed.
e.
It should be phased in over 10 to 20 years.
40. A tax on the amount of CO2 in exhaust from burning gasoline would be an example of a ____.
a.
subsidy shift
b.
full-cost pricing
c.
tax shift
d.
perverse tax
e.
green tax
41. The cap-and-trade program for regulating air pollutants by the U.S. government is an example of a(n) ____.
a.
full-cost pricing
b.
incentive-based regulation
c.
command and control regulation
d.
service-flow regulation
e.
subsidy shift
42. What do critics say about the command-and-control approach to U.S. environmental regulation?
a.
It is too focused on cleanup.
b.
It is too focused on prevention.
c.
It encourages dishonesty.
d.
It is too harsh.
e.
Its regulations are too complex.
43. What kind of environmental regulation sets heavy penalties for not reaching goals?
a.
command-and-control
b.
incentive-based
c.
innovation-friendly
d.
full-cost based
Chapter 17 - Environmental Economics - Politics - and Worldviews
e.
neoclassical
44. What has been identified as one of the five major causes of the environmental problems we face?
a.
perverse subsidies
b.
hazardous waste
c.
ignorance
d.
corruption
e.
poverty
45. What is a financial tool to help people climb out of poverty?
a.
student loans
b.
microlending
c.
microtaxes
d.
education grants
e.
no ATM fees
46. To which international plan to curb poverty has the United States failed to contribute its stated pledge?
a.
Microlending and microfinance
b.
The Ecology of Commerce
c.
The Kyoto Protocol
d.
The Basel Convention
e.
Millennium Development Goals
47. The federal government manages roughly 35% of the country’s land, which is jointly owned by ____.
a.
Native Americans
b.
the Bureau of Land Management
c.
various corporations
d.
all U.S. citizens
Chapter 17 - Environmental Economics - Politics - and Worldviews
e.
the National Park System
48. Which approach to business is least ecologically-minded?
a.
mimic nature
b.
reduce poverty
c.
sell more things instead of services
d.
use full-cost pricing
e.
use eco-labels on products
49. What is the process by which individuals and groups try to influence the decisions and policies of governments?
a.
economics
b.
resource management
c.
politics
d.
ethics
e.
policy adjustment
50. In the United States, rapid and destabilizing change is curbed by a system of ____.
a.
regulations
b.
punitive laws
c.
political discourse
d.
policy implementation
e.
checks and balances
51. Decisions about how to best use and preserve national resources in a democracy are often complicated by the many
____.
Chapter 17 - Environmental Economics - Politics - and Worldviews
a.
corporations
b.
voters
c.
special interest groups
d.
political parties
e.
competing policies
52. Analyses of budgets and appropriations reveal that the government has given an average of $2.7 million a day in ____
for privately-owned interests that use U.S. public lands for activities such as mining, fossil fuel extraction, logging, and
livestock grazing.
a.
environmental exemptions
b.
loans and grants
c.
resources and equipment
d.
permits and licenses
e.
subsidies and tax breaks
53. Which of the following is an example of a special interest group?
a.
nongovernmental organizations
b.
scientific research groups
c.
politicians
d.
government agencies
e.
economists
54. Polluting industrial sites and hazardous waste dumps tend to be located in communities populated by ____.
a.
wealthy upper class
b.
wild animals
c.
middle class
d.
minorities
e.
politicians
