Chapter 1: Key concepts

What is Environmental economics?

What are the incentive based programs in Environmental economics?

Any economic system will produce destructive environmental impacts if the ________ within the system are not structured to avoid them.

Relationship between Environment and Economic Growth

Concepts of benefits of environmental improvements

What is Command and control policies in Environmental economics?

What is the alternate term we use for Emissions charges?

According to Economists, why people pollute?

What do you mean by globalization?

Many environmental issues are local or regional; however, some are international or global in

scope. An example of a global environmental issue is…………………

MCQ:

1. Any economic system will produce destructive environmental impacts if the ________ within the system are not structured to avoid them.

A. ethics

B. prices

C. property rights D. incentives

2. An economy that has the ability to allow the level of people's well-being to rise or at least remain constant over time is ________.

A. sustainable

B. equitable

C. self-perpetuating

D. efficient

3. People make the decision to pollute or not based on ________.

A. incentives

B. social institutions

C. economic institutions D. all of the above

4. _______ organizations are more likely to respond to incentives that encourage pollution.

A. For profit

B. Not for profit

C. Government

D. All organizations are equally likely polluters

5. Positive economics is the study of _____________.

A. what will be B. what is

C. beneficial economic outcomes

D. economic outcomes that are most likely

6. ___________ would include a study of what the economic penalties for water pollution should be.

7. The technical name for the PAYT (pay as you throw) waste disposal program implemented in southern Maine communities, that charged a set price for each bag of trash is ____________.

A. municipal incentive

B. ineffective policy

C. flat fee

D. unit pricing

8. Command and control policies refer to

A. communist government approaches to pollution control.

B. regulations and laws that directly/indirectly specify pollution control technology.

C. tax and spend pollution policy.

D. regulation of pollution by the US military.

9. Examples of incentive based programs include all but ______________.

A. emissions charges

B. emissions taxes

C. command and control programs

D. market-based trading programs

10. The benefits of environmental improvement are typically_____________.

A. easy to evaluate, but costs are not

B. accrued to individuals and not society C. nonmarket in nature

D. openly traded in the market

11. Environmental economics is the application of the principles of economics to the study of the use of environmental resources.  As such, it draws mostly from the field of ____________.

V. microeconomics

B. environmental science

C. operations research and supply chain management

D. macroeconomics

12. Many environmental issues are local or regional; however, some are international or global in scope. An example of a global environmental issue is ________________.

A. destruction of the stratospheric zone

B. greenhouse gases

C. global warming D. all of the above