#1
Which economic concept refers to the total market value of all final goods and services produced in a country in a given period?
Gross Domestic Product (GDP)
ExplanationGDP measures a country's economic output.
#2
What is the primary goal of sustainable development?
Preserving environmental resources for future generations
ExplanationSustainable development aims to meet present needs without compromising future generations' ability to meet their own needs.
#3
Which of the following is an example of an environmental externality?
A factory emitting pollutants into the air
ExplanationEnvironmental externalities include pollution emitted during production.
#4
Which of the following is an example of a common property resource?
The atmosphere
ExplanationCommon property resources are owned collectively, like the atmosphere.
#5
What is the concept of 'market failure' in environmental economics?
When markets do not allocate resources efficiently due to externalities or other reasons
ExplanationMarket failure occurs when markets don't achieve efficient outcomes due to factors like externalities.
#6
What does the 'externality' refer to in environmental economics?
The unintended consequences of economic activity affecting third parties
ExplanationExternalities are the side effects of economic activities impacting others.
#7
Which of the following is NOT a market-based instrument for environmental policy?
Command and control regulation
ExplanationCommand and control regulation is a top-down approach, not market-based.
#8
Which of the following is an example of a non-market valuation method used in environmental economics?
Travel cost method
ExplanationThe travel cost method estimates the economic value of recreational sites based on travel expenses.
#9
In the context of environmental policy, what does 'polluter pays principle' suggest?
Polluters should bear the costs of their pollution
ExplanationThe polluter pays principle holds those responsible for pollution financially accountable for its cleanup or prevention.
#10
What is the primary goal of a carbon tax?
To decrease carbon dioxide emissions
ExplanationCarbon taxes aim to internalize the social cost of carbon emissions by discouraging their production.
#11
What is 'discounting' in the context of environmental economics?
Reducing the value of future costs and benefits to present value
ExplanationDiscounting accounts for the time value of money in future environmental costs and benefits.
#12
Which economic theory argues that as an economy grows, environmental degradation initially worsens but then begins to improve?
Environmental Kuznets Curve
ExplanationThe Environmental Kuznets Curve suggests an inverted U-shaped relationship between economic development and environmental quality.
#13
Which of the following is NOT a characteristic of a public good?
Rivalry in consumption
ExplanationPublic goods are non-rivalrous in consumption.
#14
What is the 'tragedy of the commons'?
A situation where individuals overuse a shared resource, leading to its depletion
ExplanationThe tragedy of the commons occurs when self-interested individuals deplete a shared resource.
#15
What is the 'tragedy of the anticommons'?
A concept suggesting that too many property rights can lead to underutilization of resources
ExplanationThe tragedy of the anticommons refers to inefficient resource allocation due to excessive property rights.