Chapter 2 Study Guide

A cost-benefit analysis is a(n)

• study of the factors that influence decisions of buyers and sellers.

• economy in which the government decides what is made.

• equilibrium between a product's supply and its demand.

• comparison between what is sacrificed and gained by a specific action.

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

• Internal and external environmental costs are usually considered equally.

• Long-term effects often receive more weight than short-term effects.

• Harm to the environment can harm economies.

• The relationship usually receives serious consideration.

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

• ecosystems.

• ecolabelling.

• non-market values.

• market failure.

In making environmental policies, government interacts with

• organizations.

• businesses.

• citizens.

• all of the above.

In the U.S., laws enacted from the 1780s to the late 1800s reflected the perception that

Most major laws in modern U.S. environmental policy were enacted in the

• 1960s and 1970s

• 1980s and 1990s

• years between 2000–2005

• years between 2005–2010

Headquartered in New York City, the 190 member nations of the following organization work together to promote peace and to help solve economic, social, cultural, and humanitarian problems.

• World Trade Organization

• European Union

• United Nations

• Kyoto Protocol

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

• green tax

• command-and-control

• cap-and-trade

• subsidy

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

• command-and-control approach

• cap-and-trade system

• subsidy

• green tax

The first step of the environmental policy process is to

• guide the solution to law

• identify the problem

• get organized

• gain access to policymakers