WorksheetsQuiz. Chapter 4 and 5. BIOL 2180_NEU
Total questions: 20
Worksheet time: 10mins
What is the most widely developed carbon market system?
Base and credit system
Emission trading system
Both systems are widely developed
No system is widely developed
In an ETS, companies trade permits to pollute in the future, while in a baseline-and-credit mechanism, the traded emission reductions have already happened.
True
False
How many emissions trading systems are there around the world (As of 2024)?
15
20
50
74
What percentage of global emissions is covered by emissions trading systems?
10%
23%
40%
70%
90%
Do carbon prices in different ETSs vary across all carbon markets?
True
False
What is the definition of carbon leakage risk?
Carbon leakage risk refers to a situation that may occur if, due to the costs associated with climate policy, businesses shift production to countries with looser emissions regulations
Carbon leakage risk refers to the negative impact of unexpected changes in carbon prices on corporations and stock portfolios
Carbon leakage risk can be defined as a family of risks related to GHG emissions associated with an asset
Why is agriculture particularly important for Vietnam in the context of the carbon market?
Agriculture only contributes a small part to the national emissions.
Agriculture accounts for about 43% of the national emissions, providing significant potential for income from carbon credits.
The rice and livestock sectors are costly and difficult to mitigate.
Carbon credits in agriculture have no economic value for Vietnam.
The price of EU allowances (EUAs) has not increased continuously since the EU ETS started in 2005. In fact, during the first trading period (2005–2007), prices fell sharply and even dropped close to zero due to oversupply of allowances.
True
False
A company buys 1 call option on 1 lot of 1,000 EU Allowances (EUA). The option expires in 3 months with a strike price of €40 per EUA (equivalent to €40,000 per lot). At the expiration date, the market price of an EUA is €35, and the company needs to purchase 2,000 EUAs to offset its emissions. How much does the company have to pay in total to acquire 2,000 EUAs?
€80,000
€70,000
€75,000
€35,000
A company enters into a futures contract as a buyer. The underlying asset is 1 lot of 1,000 EU allowances (EUA). The contract expires in 3 months with a strike price of €40 per EUA (equivalent to €40,000 per lot). At the time of expiration, the market price of an EUA is €50, and the company needs to purchase 2,000 EUAs to offset its emissions. How much does the company have to pay in total to acquire 2,000 EUAs?
€100,000
€80,000
€75,000
€35,000
What is the main objective of cost-benefit analysis (BCA)?
Minimize the total cost of a project
Maximize the net total benefit of a project
Balance costs and benefits
Ensure all stakeholders receive equal benefits
A concept that explains that money received now is worth more than money received in the future is called what?
Present value of money
Store value of money
Time value of money
Cash value
Which step involves identifying the necessary resources and expected outcomes of a project?
Identify the project or program
Identify inputs and outputs
Estimate costs and social benefits
Compare costs and benefits
Why is discounting important in cost-benefit analysis?
To compare benefits and costs that occur at different times
To increase the perceived value of future benefits
To balance current and future costs
To avoid estimating future costs
Which policy analysis method focuses on finding the cheapest way to achieve a goal without assigning monetary value to the benefits?
Cost-benefit analysis
Risk assessment
Cost-effectiveness analysis
Financial analysis
The present value of cash inflows is 50,000 USD and the present value of cash outflows is 55,000 USD. What is the net present value?
-105,000
-5,000
5,000
105,000
The process of converting cash flows into equivalent dollars at common base points is considered what?
Half-year cash flow
Annual cash flow
Cumulative cash flow
Discounted cash flow
The present value of cash inflows is 32,000 USD and the present value of cash outflows is 25,000 USD. What is the net present value?
7,000
-7,000
57,000
-57,000
If the real rate is 16% and the inflation rate is 8%, what will the nominal return rate be?
8.00%
24.00%
25.00%
21.00%
What is a disadvantage of cost-benefit analysis?
It does not consider the time value of money.
It is too complex to implement.
Different projects cannot be easily compared.
Not all costs and benefits can easily be assigned a monetary value.
