Environmental Economics Quiz

What is one of the primary greenhouse gases that causes climate change?

• Carbon Dioxide

• Nitrogen

• Methane

• Oxygen

What is the Tragedy of the Commons?

• A method to reduce carbon emissions

• A type of pollution caused by factories

• A global environmental police force

• A situation where markets fail to produce the desired amount

Which of the following is a government intervention to reduce pollution?

• Setting specific pollution rules for industries

• Providing subsidies for gasoline purchases

• Creating permit markets for pollution

• All of the above

What is the rebound effect?

• The increase in energy efficiency due to new technologies

• The decrease in demand for fossil fuels

• The offset of energy savings by increased consumption

• The increase in renewable energy investment

What is the hope for addressing greenhouse gas emissions?

• All of the above

• Consumer conservation and thoughtful consumption

• Government and producer changes

• Individual action alone

Which country leads the world in renewable energy investment?

• United States

• China

• Trinidad and Tobago

• None of the above

What is one way governments can encourage people to pollute less?

• Adding taxes to gasoline purchases

• Increasing demand for fossil fuels

• Providing subsidies for coal production

• Creating more factories that burn fossil fuels

What is the purpose of cap and trade?

• To limit emissions without hindering economic growth

• To subsidize the development of renewable energy

• To enforce strict pollution rules on industries

• To decrease the demand for fossil fuels

What is one drawback of being more efficient with fossil fuels?

• None of the above

• Higher energy costs

• Increased pollution

• Decreased demand for gas

What is the main focus of environmental economics?

• All of the above

• Reducing carbon emissions

• Conserving natural resources

• Balancing prosperity and growth