CHAPTER 17—ENVIRONMENTAL ECONOMICS, POLITICS, AND
WORLDVIEWS
MULTIPLE CHOICE
1. Since 1989
a.
The Tennessee River, which flows through Chattanooga, Tennessee, has been bubbling
with toxic waste.
b.
The U.S. government has rated the air in Chattanooga, Tennessee, as the dirtiest in the
country.
c.
The levels of the seven major air pollutants in Chattanooga, Tennessee, have been higher
than allowed by federal standards.
d.
The levels of the seven major air pollutants in Chattanooga, Tennessee, have been lower
than those required by federal standards.
e.
The city center has become a deserted, crime-infested area.
2. Chattanooga’s environmental success story is an example of how
a.
Ethics, economics, and politics can be used to solve environmental problems.
b.
Top-down changes can solve environmental problems.
c.
Environmental policies do not need the endorsement of common citizens.
d.
Federal funding solves environmental problems.
e.
None of these answers.
3. In a market-based economic system, economic decisions about prices are made by
a.
supply and demand
b.
the government
c.
past customs and experience
d.
the banks
e.
none of these answers
4. 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
d.
all of these answers
e.
none of these answers
5. 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.
6. 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
7. Goods and services are produced by
a.
natural capital
b.
human capital
c.
manufactured capital
d.
manufactured and human capital
e.
natural, human, and manufactured capital
8. The category of economist that has taken the middle ground in the debate about economic growth, and
believes in fine-tuning economic systems and tools, is the
a.
ecological economist
b.
environmental economist
c.
neoclassical economist
d.
neoconservative economist
e.
high-throughput economist
9. Which of the following is not an external 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
10. Excluding the external costs from the prices of goods and services
a.
hides these costs from the consumer
b.
hinders the development of green goods and services
c.
promotes pollution and resource waste
d.
all of these answers
e.
both hide these costs from the consumer and promote pollution and resource waste is
correct.
11. Between 1950 and 2004 we can say that:
a.
The per capita GDP rose sharply while per capita GPI stayed flat.
b.
The per capita GPI rose sharply while per capita GDP stayed flat.
c.
Both the GDP and the GPI rose sharply.
d.
Both the GDP and the GPI stayed relatively flat.
e.
While GDP rose sharply, the GPI could not be measured.
12. Full-cost pricing
a.
would improve human health
b.
reduces the final cost of goods
c.
is very popular with manufacturers
d.
would make the market price higher than the true cost of a product or service
e.
all of these answers
13. Full-cost pricing
a.
involves making the market price approach the true cost of economic goods
b.
fails to include the cost of pollution
c.
omits the costs of taxes
d.
increases the chance for environmental degradation
e.
all of these answers
14. Which of the following countries have not phased out all coal subsidies?
a.
Belgium
b.
Japan
c.
Germany
d.
France
e.
all of these answers
15. Proponents of a tax shift that transfers taxes from income and wealth to pollution and environmental
degradation point out that:
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.
16. Green taxes or ecotaxes
a.
can be administered by existing tax agencies
b.
help bring about full-cost pricing
c.
encourage businesses to develop environmentally beneficial technologies
d.
discourage pollution
e.
all of these answers
17. The cap-and-trade program for regulating air pollutants by the U.S. government is an example of
a.
full-cost pricing
b.
incentive-based regulation
c.
command and control regulation
d.
service-flow regulation
e.
none of these answers
18. If a company changes from selling a product to eco-leasing the product, we can say that:
a.
They are supporting a service-flow economy.
b.
They are supported a materials-flow economy.
c.
They will increase the pollution they generate.
d.
The amount of pollution they generate will stay the same.
e.
They will be getting a huge tax break.
19. If a leased Xerox machine’s lease expires, the company
a.
allows the customer to purchase it at a very low cost
b.
takes the machine and sends it to a landfill
c.
takes the machine back for reuse or re-manufacture
d.
asks the customer to dispose of it in an ecologically sound way
e.
sends the plastic and metal shell to a developing country for disposal
20. From the environmental perspective, it will help to stabilize population growth in developing countries
as soon as possible because
a.
Poverty has numerous harmful health and environmental effects.
b.
Poverty has been identified as one of the four major causes of the environmental problems
we face.
c.
Polluting activities and lifestyles are much more prevalent in developing countries.
d.
All of these answers
e.
Poverty has numerous harmful health and environmental effects and has been identified as
one of the four major causes of the environmental problems we face.
21. Poverty is usually defined as
a.
not being able to buy health insurance
b.
not being able to meet one’s basic economic needs
c.
earning less than 100 dollars per month
d.
not being able to afford a healthy diet
e.
all of these answers
22. Strategies to reduce poverty include
a.
providing primary education
b.
Combating malnutrition
c.
Spending more on coal and oil to generate revenue
d.
refocusing the national budget to environmental causes
e.
Two of the above are correct
23. The United States has ____ its goal of contributing .7% of its annual national income to the
Millennium Development Goals.
a.
fallen short of
b.
Met
c.
Exceeded
d.
always met or exceeded
e.
Changed
24. Economic succession is something that occurs when
a.
Changing environmental conditions allow certain species to move into an area and replace
other species that are no longer favored by the new conditions.
b.
Investment opportunities change in the stock market.
c.
Creative destruction causes companies to fail.
d.
New and more innovative businesses replace older ones that can no longer thrive under
changing economic conditions.
e.
None of these answers.
25. All of the following are suggestions by Lester Brown and Paul Hawken for making a transition to
more environmentally sustainable economies except
a.
mimic nature
b.
reduce poverty
c.
sell more things instead of services
d.
use full-cost pricing
e.
use eco-labels on products
26. The process by which individuals and groups try to influence the decisions and policies of
governments is
a.
economics
b.
resource management
c.
politics
d.
ethics
e.
all of these answers
27. Gradual rather than destabilizing change in constitutional democracies stems from
a.
conflicting information from experts
b.
distribution of power among federal, state, and local authorities
c.
distribution of power among different branches of government
d.
all of these answers
e.
both distribution of power among federal, state, and local authorities and distribution of
power among different branches of government
28. History shows that significant change
a.
is cyclical
b.
is exponentially decreasing
c.
is from the bottom up
d.
is from the top down
e.
all of these answers
29. Effective environmental leadership
a.
leads by working within the system
b.
leads by example
c.
leads by working within the government or environmental arena
d.
leads by working for better solutions to environmental problems
e.
all of these answers
30. A citizen-based global sustainability movement that is emerging is comprised of
a.
a loosely connected worldwide network of grassroots NGOs
b.
regulatory agencies within governments that oversee environmental laws
c.
special interest groups that lobby for restriction of environmental laws
d.
environmentalists that have won elections
e.
a well-funded movement to change the way public lands are used in the U.S.
31. Militant environmental groups that use violence to achieve their ends
a.
are considered valid by most environmentalists
b.
are applauded by most NGOs
c.
have never been active in the United States
d.
are opposed by most environmentalists
e.
all of these answers
32. You travel to Costa Rica during the winter holidays for an eco-tour vacation. Part of your tour includes
a visit to a beach late at night to observe endangered turtles laying their eggs on the beach. When you
arrive at the appointed place and hour, you are startled to see an armed guard at the entrance to the
beach. You learn that the armed guard is there to assure that no one enters the turtle egg-laying area
too early, or in too large a group, as these actions would prevent the turtles from laying their eggs. This
is an example of
a.
a militant environmental group
b.
an Endangered Species Act misinterpreted
c.
environmental security
d.
eco-terrorism
e.
both a militant environmental group and environmental security
33. Which one of the following list of federal agencies that manage U.S. public lands is responsible for
land that is used primarily for grazing, mining, and oil and gas extraction in the western states?
a.
U.S. Forest Service
b.
U.S. Fish and Wildlife Service
c.
National Wildlife Refuge System
d.
National Park System
e.
Bureau of Land Management
34. Many free-market economists, among others, believe that all of these principles should govern use of
public lands except:
a.
Cut old-growth forests in national forests and replace them with tree plantations.
b.
They should be used primarily for protecting biodiversity, wildlife habitats, and
ecosystems.
c.
The American people deserve fair compensation for use of their property.
d.
All users or extractors of resources on public lands should be held responsible for damage
they cause.
e.
No one should receive tax breaks for extracting resources on public lands.
35. According to the planetary management environmental worldview
a.
We have an ethical responsibility to be good stewards of the Earth.
b.
Resources are limited and should not be wasted.
c.
We should manage nature to meet our needs.
d.
Resources are limited and should not be wasted.
e.
Our success depends on learning how nature sustains itself.
36. The belief that we are a part of, and totally dependent on, nature is one of the principles of the
a.
planetary management worldview
b.
stewardship worldview
c.
environmental dictatorship worldview
d.
environmental wisdom worldview
e.
spaceship Earth worldview
37. According to the stewardship worldview
a.
The potential for economic growth is essentially unlimited.
b.
We will probably not run out of resources, but they should not be wasted.
c.
Our success depends on how well we manage the earth’s life support systems for our own
benefit.
d.
Our success depends on learning how nature sustains itself.
e.
All of these answers
38. A fellow student and friend of yours is a business major with an emphasis area in marketing. In
discussions with your friend, you learn that she wishes to have a career in marketing because she
believes the potential for economic growth is basically unlimited, and she will have a happy and
prosperous life. Your friend espouses which environmental worldview?
a.
environmental wisdom
b.
stewardship
c.
economic succession
d.
planetary management
e.
planetary intrinsic value
39. Which of the following beliefs does not characterize an environmental-wisdom worldview?
a.
Human ingenuity can fix any problems we face.
b.
Earth has limited resources.
c.
We are part of, and totally dependent on, nature.
d.
Our success depends on learning how nature sustains itself.
e.
None of these answers.
40. Which of these ideas is an important component of environmental literacy?
a.
Natural capital is expendable
b.
Ecological footprints of the more- developed world are balanced by those of the less-
developed world.
c.
Ecological tipping points are irreversible and should not be crossed
d.
Ecological tipping points can be balanced by reforestation and restoration efforts
e.
gloom-and-doom pessimism in the critical evaluation of experts and leaders
41. You have a lively discussion about environmental issues with a fellow student in your class. This
student tells you that her family has purchased a bio-diesel fuel generator and uses it to produce fuel
for the family vehicles. They collect used cooking oil from local fast-food restaurants to supply the
raw materials for this process. This demonstrates an understanding of which key topics of
environmental literacy?
a.
Pollution prevention and waste reduction
b.
Renewable energy resources
c.
Environmentally sustainable economic systems
d.
Environmental worldviews
e.
All of these answers
42. All of the following are elements of the Sustainability Eight except:
a.
Reduce car use.
b.
Buy or grow organic food.
c.
Use a car for two years while it runs well, and then discard it for a newer model.
d.
Reduce meat consumption.
e.
Buy locally grown food.
43. The concept of affluent people learning to live with less than what they are accustomed to is known as
a.
demographic equilibrium
b.
demographic sufficiency
c.
voluntary simplicity
d.
affluenza
e.
affluent regression
44. Which of the following is one of the human activities with the greatest harmful impact on the
environment?
a.
Food production
b.
Transportation
c.
Overall resource use
d.
Home energy use
e.
All of the above
45. You would like to live more simply and lightly on the earth, and are keeping this in mind as you
consider some additions to your wardrobe. What is the best choice of the following options?
a.
You decide to purchase a sweater from an outdoor clothing company that is rather pricey,
but donates a share of its profits to several environmental groups.
b.
You decide to purchase a sweater from Macy’s that is on sale, and is marked down $40.
You will use the $40 for the cost of a membership in an environmental group.
c.
You decide to purchase a sweater from a clothing company that uses sustainable methods
in acquiring the materials for their clothing.
d.
You decide to purchase a sweater from an internet-based company that employs women in
developing countries to make the sweaters.
e.
You decide to forego the new sweater, and try to make do with what you have for at least
another year.