Economics and Environmental Policies

A law that prohibits dumping wastes into the ocean and punishes people who dump wastes demonstrates which approach to environmental policy?

• A. green tax
• B. command-and-control
  
• C. cap-and-trade
• D. subsidy

A cost-benefit analysis is a(n)

• A. study of the factors that influence decisions of buyers and sellers.
• B. economy in which the government decides what is made.
• C. equilibrium between a product's supply and its demand.
• D. comparison between what is sacrificed and gained by a specific action.

Which statement about the relationship between economics and the environment is true?

• A.  Internal and external environmental costs are usually considered equally.
• B. Long-term effects often receive more weight than short-term effects.
• C. Harm to the environment can harm economies.
• D. The relationship usually receives serious consideration.

“Energy Star,” “USDA Organic,” and “Fair Trade Certified” are all examples of

• A. ecosystems.
• B. ecolabelling.
• C. non-market values
• D. market failure.

In making environmental policies, government interacts with

• A. organizations.
• B. businesses..
• C. citizens
• D. all of the above.

A power company is given free land by the government to reduce the cost of providing wind-generated electricity to rural residents. This is an example of a

• A. command-and-control approach.
• B. cap-and-trade system.
• C. subsidy.
• D. green tax.

____________ is the study of how resources are converted into goods and services and how these goods and services are distributed and used.

• A. Supply and demand
• B. Cost-benefit analysis
• C. Economics
• D. Socialism

A producer will raise the price and supply of a product when the

• A. demand is low.
• B. demand is high.
• C. price is high.
• D. market is in equilibrium.

The sun's energy, fresh water, trees, rocks, and fossil fuels are all examples of

• A. non-market values.
• B. natural resources.
• C. economies.
• D. ecosystems.

Water pollution from factories in Tijuana, Mexico, caused beach closures in San Diego, California, that hurt the local economy. Because the pollution did not directly affect the buyers or sellers of factory products, losses due to the pollution are considered ___________ costs.

• A. external
• B. internal
• C. supply
• D. demand