ECON 310 Chapter 6 Study Quiz
______1. Macroeconomic environmental issues revolve around
a. the interaction of firms and regulatory agencies.
b. the interaction of the economic system with the physical and natural environment.
c. the interaction of the economic system with environmental waste.
d. the interaction of international governments in regulating the use of the environment.
______2. Improved environmental quality will
a. increase the health of the population.
b. improve social justice.
c. not change production levels.
d. both a and b.
______3. Barriers to the adoption of improved environmental technology, as identified by Palmer and Simpson, include all of the following except
a. firm inefficiency
b. firm efficiency
c. firm short-sightedness
d. difficulty associated with appropriating benefits from R&D expenditures on new technology.
______4. Failing to recognize both the positive and negative effects of pollution regulations has resulted in
a. GDP estimates which are too high.
b. national income measurements which are too high.
c. biased estimates of GDP.
d. international misconceptions about the value of environmental regulations.
______5. If the impacts of pollution are cumulative, then the rise in income in an economy
a. the
rise in income may not lead to a rise in environmental quality.
b. the rise in pollution will lead to a rise in income.
c. the rise in income will lead to a rise in environmental quality.
d. all of the above.
______6. The Environmental Kuznets Curve (EKC) argues that _____________ have little impact on the environment but as an economy continues to grow the quality of the environment will __________ and then ___________.
a. high income economies; fall; rise.
b. low income economies; fall; rise.
c. low income economies; rise; fall.
d. high income economies; rise; fall.
______7. The global public good characteristics of environmental resources include all of the following except
a. resources in one country generate public good benefits for people in other countries.
b. it becomes difficult to negotiate agreements across countries because of arguments over who should bear the cost of environmental regulation.
c. it is difficult to identify the appropriate agency for negotiation.
d. it suggests that Brazil be allowed to design a policy of environmental resource use without outside intervention.
______8. Strict environmental policy can _________ if those policies result in higher production costs.
a. change the relative price of goods between countries.
b. provide an incentive for relocation of production.
c. can influence the development of less polluting technologies.
d. all of the above.
______9. The World Trade Organization (WTO) has the potential to adversely impact the environment
a. because it does not prevent a country from limiting imports based on the way the good was produced.
b. because it prevents the use of certain types of environmental technology.
c. because it prevents a country from limiting imports based on the way the good was produced.
d. because it does not recognize the right of individual countries to establish their own environmental policy.