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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or
answers the question.
Use Figure 2.6 to answer the following questions.
1) According to the figure, the basis for government policy regarding
environmental issues ________.
A) comes from the sciences, with additional input from the public and
private sectors
B) comes from both the public and the private sectors
C) comes only from the natural and social sciences and is acted upon
without bias
D) is primarily driven by lobbying
E) comes primarily from the private sector
1) _______
2) The government's approach to resolving environmental problems
usually includes all of the following except ________.
A) punitive consumer laws, with fines for excessive use of a product
B) consumer incentives, such as rebates and tax breaks
C) punitive business laws, with fines for excessive pollution
D) consumer laws, such as banning certain products
E) business incentives, such as subsidies and tax breaks
2) _______
3) Regarding the issue of global warming, until the hurricane season of
2005, the federal government's official stance was that the information
available from the scientific community was neither conclusive nor
persuasive. This governmental position was probably due to ________.
A) lobbying efforts on the part of environmental organizations
B) the lack of good, measurable data from the scientific community
C) laws passed by voters
D) the private sector's reluctance to change manufacturing and land
use strategies
E) the consumer opinion polls
3) _______
4) Today, with conflicting scientific evidence about the the safety of many
pharmaceutical products, industrial chemicals and pesticides, a line on
the diagram could be drawn between ________ and ________,
compromising the unbiased findings of the latter.
A) policy and consumer choices
B) public and private sectors
4) _______
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C) private sector and natural/social,sciences
D) public sector and policy
E) sciences and policy
MATCHING. Choose the item in column 2 that best matches each item in column 1.
Match the following.
5) An institution that shapes
A) EPA
environmental policy through
funding of dams, irrigation,
infrastructure, and other
developmental projects
B)
EU
C)
6)
International Environmental Policy
Agency
An institution based in Geneva,
Switzerland that represents
multinational corporations and
enforces fairness among nations in
trading practices
D) NGO
E)
World Bank
F)
7) International organization based in
United Nations
Nairobi, Kenya that helps promote
environmental sustainability through
outreach and education about
environmental issues
G)
UNEP
H)
World Trade Organization
8)
Organization that shapes policy
through research, education,
lobbying, or protest
9) Institution established shortly after
World War II by representatives of 50
countries to "maintain international
peace and security"
10) Organization responsible for issuing
environmental regulations and
enforcing the Clean Air Act
SHORT ANSWER.
the question.
Write the word or phrase that best completes each statement or answers
5) _______
6) _______
7) _______
8) _______
9) _______
10) ______
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11) Briefly explain how the earth's ecological systems support
world economies.
11) _____________
12) Briefly explain how cost-benefit analysis can be biased in favor
12) _____________
of economic development and against environmental protection.
13) What is an environmental impact statement (EIS)?
13) _____________
14) Political boundaries do not always match environmental
boundaries. What does this mean for environmental
protection in each country?
14) _____________
15) What is a subsidy? Describe the role of subsidies in natural
resource management.
15) _____________
16) Describe the process that resulted in funding for the Bajagua
Project in California in 2006.
16) _____________
17) ________ can occur when markets do not take into account the
environment's positive effects on economies, or when they do
not reflect the bad effects of economic activity on the
environment and people.
17) _____________
18) ________ is a method used by manufacturers that tells
consumers which brands use manufacturing processes that are
environmentally beneficial.
18) _____________
19) "________ flows" occur when heavy rains overwhelm the ability
of sewage treatment plants to process wastewater.
19) _____________
20) All of the land from which water drains into a river is called a
________.
20) _____________
21) ________ consists of a formal set of general plans and principles
intended to address problems and guide decision-making. It
requires input from science, ethics, and economics.
21) _____________
22) ________ is a system where industries emitting below the
allowed level of a pollutant sell "credits" to industries which do
not meet the standards.
22) _____________
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or
answers the question.
23) Which of the following is an assumption of neoclassical economics?
23) ______
A) Long-term effects are important.
B) All citizens deserve just and equal treatment.
C) Resources are finite.
D) Growth is good.
E) External costs and benefits are valuable.
24) ________ is best defined as the study of how we decide to use scarce
resources in
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the face 24)
of
demand.
A)
B)
C)
D)
E)
___
___
Environmental science
Ethics
Ethnobiology
Ecology
Economics
25) In modern market capitalist economies, the government intervenes to
provide all of the following except ________.
A) pollution mitigation
B) national defense
C) resource allocation
D) medical care and education
E) management of the commons
25) ______
26) External costs include ________.
A) wages
B) environmental damage
C) utility expenses
D) workers compensation and insurance
E) raw materials
26) ______
27) "If domestic fuel prices rise to $5/gallon, conservation will increase,
alternative fuels will be developed, and energy efficiency and our
quality of life will improve as new technologies are developed." This
philosophy is consistent with ________ economics.
A) classical
B) environmental
C) subsistence
D) database
E) cooperative
27) ______
28) The economic philosophy developed by Adam Smith ________.
A) proposes maintenance of economies through government
regulation
B) assures equality between rich and poor
C) advocates laissez-faire policies that many credit for the
tremendous gains in material prosperity of industrial nations
D) is often called "steady-state economics"
E) argues that individuals acting in their own self-interest harm
society
28) ______
29) Maquiladoras are ________.
A) Mexican subsistence farmers
B) an invasive species
C) an endangered species
D) U.S.-owned factories in Mexico
E) Mexican citizens who work illegally in factories
29) ______
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30) Environmental economists ________.
A) advocate use of cost-benefit analysis to ensure market fairness
B) is based on the concept that human economies depend crucially on
their environment
C) favor emphasis of internal costs rather than external costs
D) maintain that we cannot create sustainable economies within our
current economic system
E) favor the discounting of future events relative to current events
30) ______
31) ________ economists maintain that we must reduce population growth,
but we can keep our economies growing as technology improves the
efficiency and novelty of resource use.
A) Environmental
B) Classical
C) Steady-state
D) Social
E) Ecological
31) ______
32) Restrictive use and active management describe concepts that ________.
A) promote free-riders
B) were opposed by Garrett Hardin
C) are favored by most free-market economists
D) aim to reduce internal costs
E) are central to current environmental policy in the United States
32) ______
33) ________ considered the "fourth branch" of government and the source
of a great deal of policy.
A) Congress is
B) Lobbyists are
C) The Supreme Court is
D) NGOs are
E) Administrative agencies are
33) ______
34) The book Silent Spring ________.
A) awakened the public to the negative effects of pesticides
B) discusses the pollution problems in the Tijuana River watershed
C) describes how environmental and economic concerns are
intimately connected
D) describes how people survive in subsistence economies
E) warns of the "Tragedy of the Commons"
34) ______
35) The Cuyahoga River ________.
A) supplies most of the water to the Everglades National Park
ecosystem
B) is the site of the largest hydroelectric dam in the world
C) is a tributary of the Mississippi River that was recently diverted to
prevent further flooding of New Orleans
D) watershed is a transboundary watershed with approximately 70%
of its area in Mexico
E) caught fire several times in the 1950s and 1960s due to oil and
industrial waste pollution
35) ______
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36) The National Environmental Policy Act (NEPA) ________.
A) aimed to reduce emissions that contribute to global climate change
B) requires the preparation of an environmental impact statement for
federal actions that affect environmental quality
C) established a system of U.S. national parks, forests, and wildlife
refuges
D) established the United Nations Environment Programme (UNEP)
E) was a 1987 accord among more than 160 nations to reduce the
emission of airborne chemicals that thin the ozone layer
36) ______
37) The United Nations ________.
A) provides subsidies to businesses to promote environmentally
sustainable activities
B) is headquartered in Geneva, Switzerland
C) is headquartered in Washington, D.C.
D) plays an active role in shaping international environmental policy
E) seeks mainly to promote economic equity among European
nations
37) ______
38) The role of green taxes is to ________.
A) create national parks
B) educate children about recycling
C) pave roads in national forests
D) create greenbelts for movement of organisms between preserves
E) penalize environmentally harmful activities
38) ______
39) The first U.S. national park was ________.
A) Glacier
B) Grand Canyon
C) Acadia
D) Yosemite
E) Yellowstone
39) ______
40) The revolving door ________.
A) allows illegal immigrants access to jobs and healthcare in the
United States
B) allows lobbyists to work for many political entities at the same
time
C) describes illegal dumping of pollutants in foreign countries
D) is the movement of powerful officials between the private sector
and government agencies
E) pairs environmental causes with lobbyists already working on
other causes
40) ______
41) Ecological economists argue that ________.
A) technological solutions will always be found to overcome resource
depletion
B) population growth will produce more workers able to produce
more goods
C) increased human resources can replace natural resources
41) ______
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D) the economy must be driven exclusively by market growth
E) if nothing is done to rein in population growth and increased
resource consumption, human economies will plunge into ruin
42) In the United States, enforcement of statutory law is primarily the
responsibility of ________.
A) the Supreme Court
B) district courts
C) the Congress
D) the President
E) administrative agencies
42) ______
43) Affluenza is ________.
A) flooding labor markets with illegal workers
B) a viral disease ravaging developed nations
C) a computer virus
D) failure of excess material possessions and power to bring real
satisfaction in life
E) the growing anger and frustration developing in low-income
families and nations
43) ______
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
44) Economists study the household of human society and ecologists study
the household of life.
44) ______
45) Conventional law is international law that arises from long-standing
practices, or customs, held in common by most cultures.
45) ______
46) Conventional law is international law that arises from international
treaties.
46) ______
47) Marketable emissions permits prevent increases in total pollution.
47) ______
48) In a subsistence economy, buyers and sellers interact to determine
which goods and services to produce and how these goods and services
should be produced and distributed.
48) ______
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
49) Explain how environmental and ecological economists assign values to ecosystem
services.
50) Describe the development of U.S. environmental policy.
51) Explain how economic and environmental concerns are intimately connected. Give
an example from your text.
52) Describe the steps in the environmental policy process.
53) Briefly explain how governments can intervene to counter market failure and attain
environmental policy goals.
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54) What are non-market ecosystem services? Why are they an important, and why are
they a vital component of environmental economics?
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or
answers the question.
Read the following scenario and then answer the questions below.
Burning fossil fuels and their derivatives produces, among other things, harmful pollutants such
as particulates, acid rain-producing sulfur and nitrogen oxides, and carbon oxides. These air
pollutants threaten ecosystems all over the world, and high carbon dioxide levels contribute to
global climate change. Furthermore, fossils fuels have a limited supply. The market price of fossil
fuels, especially crude oil, have continued to rise in recent years. Despite this, Americans
continue to consume fossil fuels at alarming rates. We rely upon fossil fuels for most of our
energy needs, and continue to drive bigger and less fuel-efficient vehicles. At various times, the
federal government has considered mandating higher fuel efficiency standards for American
vehicles as a possible solution to this environmental energy crisis. Most auto manufacturers,
however, are opposed to the imposition of standards.
55) Which of the following has contributed to the rapid increase in crude oil
prices over the past decade?
A) increased gas taxes
B) increased demand for oil
C) decreased demand for oil
D) increased availability of alternative fuels
E) increased supply of oil
55) ______
56) Which of the following represents one possible explanation for why the
federal government has not been successful at mandating higher fuel
efficiency standards for American vehicles?
A) The cost-effectiveness of operating smaller vehicles.
B) Exemption of auto manufacturers from federal laws.
C) America's dependence on oil from the Middle East.
D) The high demand from American consumers for larger vehicles.
E) The cost-effectiveness of producing smaller vehicles.
56) ______
57) What factors might lead to more political support for higher fuel
efficiency standards?
A) higher oil prices
B) lower oil prices
C) decreased demand for oil
D) an end to political instability in the Middle East
E) release of oil from the national petroleum reserves
57) ______
58) What environmentally beneficial alternative measures might the
government take to aid in the fossil fuel crisis?
A) Provide subsidies for more oil exploration.
B) Abolish green taxes.
C) Enact laws at the state and local level.
D) Build more oil refineries.
E) Reopen closed coal mines.
58) ______
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59) What environmentally beneficial measures might consumers take to aid
in the fossil fuel crisis?
A) Lobby the government to stop industry permit-trading.
B) Use and lobby for funding for public transportation.
C) Only purchase domestic fuel.
D) Only purchase imported fuel.
E) Protest high taxes on fossil fuels.
59) ______
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1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
13)
14)
15)
A
A
D
C
E
H
G
D
F
A
Ecosystems provide many goods and services. Nature is the source of our food, water,
building materials, and energy. The earth's ecological systems purify the air and water.
Microorganisms decompose organic substances to make soil. Nature cycles nutrients such
as nitrogen, carbon, sulfur, and phosphorous needed for crop growth. Animals such as
birds, bats, and insects pollinate crops and other plants. Ecosystems also provide
recreational and educational opportunities. These are economically valuable goods and
services.
Not all costs and benefits can be easily quantified, identified, or defined. For instance, it is
difficult to assess the cost of a valued landscape scarred by development or the cost of
contamination of waterways due to pollution. Economic benefits are usually more easily
quantified than environmental costs and economic benefits tend to be overrepresented in
traditional cost-benefit analysis. Assumptions of neoclassical economics (infinite resources,
focus on the short term, ignorance of external costs, and growth) can conflict with
environmental concerns favoring preservation of tangible and intangible resources for
future generations. However, the environmental economic cost-benefit analyses proposed
by Robert Constanza and associates are beginning to provide methodologies for valuing
both tangible (e.g. pollination) and intangible ecosystem services (e.g. peace of mind). The
total value of these services in 2009 dollars is estimated at $44 trillion.
An environmental impact statement is a report required by the National Environmental
Policy Act of 1970. It requires filing of a public report of studies that assess the potential
impacts on the environment that would result from development projects undertaken or
funded by the federal government. EISs must be filed by government agencies or the
businesses that contract with them to evaluate environmental impacts before proceeding
with a new dam, highway, or construction project.
Countries are often dependent on each other for solving environmental problems, as in the
case of pollution. Pollution that is a cause of concern for one country may have originated
in another country. In such cases, international cooperation is required to correct the
problem.
A subsidy is a government giveaway of publicly owned resources, a giveaway of cash, or
tax break, intended to encourage certain activities while discouraging others. Subsidies can
be used to promote sustainable activities, but sometimes they are not used that way.
Examples include subsidies for nonrenewable fossil fuels, road-building in national forests,
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and mining on public lands.
16) Two processes aided the funding for this project. First, proponents made substantial
contributions to the campaign funds of pro-Bajagua state legislators. Second, professional
lobbyists were hired to promote the project with government officials. In February, 2006,
these efforts paid off when the project was approved.
17) Market failure
18) Ecolabeling
19) Rogue
20) watershed
21) Policy
22) Emissions trading or Cap-and-trade
23) D
24) E
25) C
26) B
27) B
28) C
29) D
30) B
31) A
32) E
33) E
34) A
35) E
36) B
37) D
38) E
39) E
40) D
41) E
42) E
43) B
44) TRUE
45) FALSE
46) TRUE
47) TRUE
48) FALSE
49) Ecosystem services can be assessed by economists in several ways. They can measure the
cost to restore damaged natural ecosystems or to mitigate harm from pollution. They can
use surveys to determine how much people are willing to pay to protect a resource or to
restore it after it is damaged. They can measure the money, time, or effort people expend to
travel to places for recreation. They can analyze housing prices, comparing homes with
similar characteristics but different environmental settings to infer the dollar value of
landscapes, views, and peace and quiet. In the 1990s, one economist, Robert Constanza,
published a study on the value of the Earth's ecosystems. He worked with other scientists
to try to quantify the costs associated with duplicating all the goods and services that
nature provides, including tangible resources like food, clean water, and shelter, as well as
intangible services like recreational opportunities and spiritual renewal. Costanza's study,
published in Nature, indicated that, annually, trillions of dollars would be needed to
supply the goods and services that nature provides. The question of how to quantify these
things is debatable. However, a follow-up study published in Science in 2002 similarly
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concl that our natural environment is worth trillions of dollars. These studies show that
uded conservation is a bargain, and nothing is worth nature's destruction.
50) U.S. environmental policy laws were created in three general periods: Westward expansion
was promoted during the first period (1780s-late 1800s). Environmental laws of this period
included the General Land Ordinances of 1785 and 1787, the Homestead Act of 1862, the
Mineral Lands Act of 1866, and the Timber Culture Act of 1873. These laws encouraged
settlers, entrepreneurs, and land speculators to move west and extract natural resources,
hastening the closing of the frontier, with little regard for environmental preservation. By
the late 1800s, the West had become more populated and its resources were being exploited.
The second period began at this time. Over the next several decades, national parks, forests,
and wildlife refuges were established as people became more aware of the environmental
problems associated with westward expansion. Sensible land management policies
continued through the 20th century, targeting soil conservation in the Dust Bowl years and
extending through the Wilderness Act of 1964. The third major period of U.S.
environmental policy began in the 1960s as the country continued to become more
populated and became driven by technology, heavy industry, and intensive resource
consumption. A landmark event was the 1962 publication of Silent Spring by Rachel Carson,
which awakened the public to the negative effects of industrial chemicals and pesticides.
The public demanded a cleaner environment. In 1970, the first Earth Day was celebrated,
and the National Environmental Policy Act, the Clean Air Act, the Clean Water Act, and
the National Environmental Policy Act were established to strictly regulate industrial
pollution and environmental destruction. The Environmental Protection Agency was
established in 1970 to oversee policy.
51) When we deplete natural resources and produce too much pollution, we can overwhelm
ecological systems and degrade their ability to function properly. As development
proceeds and populations continue to expand, we degrade ecosystems and deplete natural
resources quicker than they can rebound. These resources and ecosystems are needed to
sustain our economies. Problems in the Tijuana River watershed demonstrate this principle.
Increased development and population density in this transboundary watershed region
cause rogue flows which wash pollutants into local rivers and coastal waters in San Diego
and Tijuana. Rogue flows cause beach closures as garbage washes up on beaches.
Recreation, tourism, and other economic activity is thus significantly reduced. In addition,
sewage-tainted water poses a health threat, leading to higher medical costs and fish kills.
The area loses income and local economies are significantly affected. Economists realize
that environmental protection is beneficial to economies.
52) The first step in the environmental policy process is identifying the environmental problem.
This requires observation and record-keeping. Step two is identifying the causes of the
problem. The third step is envisioning a solution. This may involve scientific, social, or
political action. The fourth step is organizing and raising funds. The fifth step is gaining
access to political powerbrokers via lobbying and campaign contributions. Using the
"revolving door"---assessing individuals who have knowledge of both industry and
government policies is useful at this stage. The final step is shepherding a solution, which
may involve preparing a bill or law which embodies the solutions and finding support in
Congress.
53) Governments can aim to promote fairness, resource conservation, and economic
sustainability through legislation, regulation, and market incentives. Laws and regulations
may restrict or limit resource extraction and release of harmful pollutants into the
environment. Setting strict legal limits is called the "command-and-control" approach and
it has been somewhat successful as evidenced by cleaner air and water in some places in
the United States. This approach can fail if it generates opposition by special interest
groups or causes citizens to view government intervention as restrictive. Governments can
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impo
se
gree
n
taxes
to
pena
lize
envir
onm
ental
ly
54)
55)
56)
57)
58)
59)
harmful practices. Taxing undesirable activities helps to "internalize" external costs by
making them part of the overall cost of doing business. It is hoped that businesses will not
pass on tax expenses to consumers. Governments can give tax breaks to businesses or
individuals to promote environmentally friendly activities. They can subsidize green
industries to offset economic losses in the marketplace. They can allow companies to trade
marketable permission permits, which allow companies that emit under their allowable
quota of pollution to sell permits to other companies. It is best when environmental
organizations buy surplus permits and thus retire them, reducing overall pollution.
Governments can allow ecolabeling to educate consumers on environmentally beneficial
products. By preferentially buying ecolabeled products, consumers can provide businesses
a powerful incentive to switch to environmentally friendly products such as dolphin-safe
tuna, recycled paper, and organically grown food.
Non-market or intangible ecosystem services are qualities such as peace of mind, beauty,
cultural significance, educational values, awe, inspiration and meditative self-knowledge.
For example, if you consider why people visit spots of natural beauty and solitude, many
of these services are motives for vacations and hence of indirect value to the tourist
industry. For indigenous peoples the world over , sacred sites in wild nature have great
cultural, educational and spiritual value.
The educational value of natural areas is an
economic asset if you consider the result of people growing up without experiencing them,
and then later making decisions about land use in which a value for the intangibles is not a
factor.
Since these intangibles a drivers of economic activity they obviously have a monetary value
and have to be included in any comprehensive environmental economics.
B
D
A
C
B