CNBC explains Circular Economy Quiz

What is the main principle of the linear economy?

• Take, make, and dispose

• Make, use, and return

• Recycle, reuse, and refurbish

• Produce, consume, and manage

How does the circular economy treat materials?

• As finite resources

• As disposable resources

• As infinite resources

• As renewable resources

What is the main advantage of leasing light instead of buying lightbulbs?

• Lower cost of ownership

• No need for maintenance

• Unlimited supply of lightbulbs

• Fixed lighting costs

What is H&M's strategy to become 100 percent circular?

• Collecting and recycling old garments

• Selling more new garments

• Donating old garments to charity

• Burning old garments for energy

What did the European Union adopt in 2015 to promote the circular economy?

• An environmental protection plan

• An action plan for circular supply chains

• A waste management plan

• A plan for reducing carbon emissions

What is the estimated economic benefit of shifting to the circular economy in the E.U. by 2050?

• 12 percentage points increase in GDP

• 15 percentage points increase in GDP

• 5 percentage points increase in GDP

• 8 percentage points increase in GDP

What is one of the challenges of transitioning to the circular economy?

• Selling more physical products

• Increasing production costs

• Redesigning supply chains and products

• Reducing environmental benefits

What percentage of U.K. companies are trying to generate value from returned products?

• 10 percent

• 22 percent

• 35 percent

• 50 percent

What is the estimated cost of transitioning to a fully efficient reuse and recycling system across Europe?

• 50 billion euros

• 80 billion euros

• 100 billion euros

• 130 billion euros

What is one of the key factors required for the circular economy to become a reality for everyone?

• Government subsidies for recycling

• Changing people's mindsets

• Reduced cost of transitioning

• Increased production of physical products