Chapter 2: Questions from textbook

Q5. Consider the production and use of single-use, plastic-shopping bags, and examine their flows along all parts of Figure 2.1. Do the same for paper shopping bags.

Q7. Suppose there is a technological change that allows firms to produce goods and services with less pollution. How would this affect the production possibilities curves of Figure 2.2, and where might society choose to locate itself on this curve?

Concept:

What is Fundamental Balance  equation used in Environmental management? Details of this equation.

Chapter 3: Questions from textbook

2. Below is the marginal willingness to pay of a consumer for organic apples. Note the MWTP to

go from 0 to 1 lb. per week is $5.00.

a. What is this individual’s total willingness to pay at a consumption level of 4 apples?

How technological change affect MC curve?

What is Equimarginal Principle?

Multiple Choice Questions:

From Chapter 2:

1. The trade-off that exists between harvesting as much as possible of a renewable resource today versus waiting for the future exemplifies the ________ of many natural resource management issues.

A. sustainability

B. intertemporal dimension

C. short-run impact

D. efficiency

2. When a new production technology is invented that results in production of smaller amounts of residuals per unit of output produced, this is called reducing the ________.

A. damages from production

B. intensity of pollution

C. residuals from production

D. residuals intensity of production

3. The residuals from production can be reduced by ________.

A. shifting the composition of output towards low-residual items

B. preventing pollution by reducing the energy inputs required to produce each unit of output

C. reducing the residuals intensity of production D. all of the choices are correct

4. An accidental oil spill is an example of a(n) ________ emission while municipal treated wastewater is an example of a(n) ________ emission.

A. continuous; episodic

B. global; local

C. point source; nonpoint source D. episodic; continuous

5. The study ofnature in its role as a provider of raw materials is called ________. A. natural resource economics

B. natural economics

C. environmental economics

D. all of the choices are correct

6. ________ economics is an example of a subdivision of natural resource economics.

A. Agricultural

B. Energy

C. Mineral

D. All of the choices are correct

7. Nonrenewable resources are those for which there is no process of ________.

A. substitution

B. replenishment

C. sustainability

D. assimilation

8. According to the fundamental balance equation, how can M, raw materials and energy extracted from the environment, be reduced?

A. Reduce G, the amount of goods produced

B. Reduce Rp, residuals from producers

C. Increase (Rrp + Rrc), recyclables from both consumers and producers D. All of the above are a method of reducing M

From Chapter 3:

Table 3.0    Coffee Consumption

1. Refer to Table 3.0.  At a price of $3.00, how many cups of coffee would this individual consume?

A. 2

B. 6

C. 4

D. There is not enough information in the table to determine the answer.

2. Refer to Table 3.0.  What is the total willingness to pay for 5 cups of coffee?

A. $3.50

B. $14.00

C. $21.25

D. $15.75

3. Refer to Table 3.0.  What are the total benefits of consuming 4 cups of coffee?

A. $3.75

B. $17.75

C. $ 5.75

D. Indeterminate. The table does allow the calculation of benefits.

Table 3.1    Production Schedule for Widgets

4. Refer to Table 3.1. According to the equimarginal principle, in order to minimize the cost of producing

100 units, how would we distribute production between plants A and B?

A. 0 units at plant A; 100 units at plant B

B. 20 units at plant A; 80 units at plant B

C. 38 units at plant A; 62 units at plant B

D. 50 units at plan A; 50 units at plant B

Table 3.2 Marginal Cost Functions of an Industry with 4 Firms

5. Refer to Table 3.2.  At a market price of $4.00, what is industry supply?

A. 0

B. 48 units

C. $ 192.00

D. Indeterminate. The table does reveal aggregate supply.