Environmental Economics Quiz

What is cost benefit analysis?

• A law that prohibits dumping wastes into the ocean

• A power company being given free land by the government

• The process of comparing the costs and benefits of a decision or policy

• The process of creating a flowchart for environmental policy

Describe the interrelationship between economics and the environment.

• Economics and the environment are unrelated fields

• Economics often dictates environmental policies

• The environment has no impact on economic decisions

• Economics and the environment are interrelated, as economic activities can impact the environment and vice versa

What are "Energy Star," "USDA Organic," and "Fair Trade Certified" all examples of?

• Types of environmental policies

• Governmental organizations

• Environmental or ethical certification programs

• International treaties

What does the intersection of the two sloping lines represent?

• The point where the cost of production is highest

• The equilibrium point where supply equals demand

• The maximum price a consumer is willing to pay

• The point where the government sets taxes

Using the diagram above, suppose the system is at equilibrium, and then the demand curve is shifted upward. What would have to happen to the price to reach the new equilibrium point?

• The price would have to decrease

• The price would remain the same

• The price would have to increase

• The supply would have to decrease

Explain why the supply curve slopes the way it does.

• Because as the price increases, the quantity supplied decreases

• Because as the price decreases, the quantity supplied increases

• Because as the price increases, the quantity supplied increases

• Because the supply curve is not related to price

People often overlook the connection between their economic activities and the environment. In terms of economic activities, how can people be more mindful of their effect on the environment? Give one example.

• By reducing consumption and recycling materials

• By increasing consumption to boost the economy

• By ignoring environmental impacts for short-term gains

• By focusing solely on economic growth without considering sustainability

Outline the evolution of United States environmental policy from the 1780s to the late-1900s. How would you rate the progress made in U.S. environmental policy during this period?

• Significant progress with comprehensive policies

• No progress and no policies implemented

• Some progress but mostly in the late 1900s

• Regression in policies and environmental degradation

What have been some of the most important developments in U.S. environmental policy since the 1960s? Explain the importance of these developments.

• The establishment of the Environmental Protection Agency

• The deregulation of environmental protections

• The decrease in public interest in environmental issues

• The focus on economic development over environmental concerns

What type of approach to environmental policy do you think is the most effective? Explain why.

• A balanced approach considering both economic and environmental factors

• An approach that prioritizes economic growth over environmental protection

• An approach that strictly focuses on environmental conservation, disregarding economic impacts

• An approach that leaves environmental policy to individual choices without government intervention