#1
Which of the following is an example of a negative externality?
A factory emitting pollutants into the air
ExplanationNegative externality: third-party harm from economic activity.
#2
Which of the following is NOT a renewable resource?
Coal
ExplanationCoal: non-renewable resource due to finite availability.
#3
What is the primary goal of sustainable resource management?
Minimizing environmental impact
ExplanationSustainable resource management aims to minimize environmental impact.
#4
What is the concept of 'polluter pays principle'?
Requiring polluters to bear the costs of their pollution
Explanation'Polluter pays principle': making polluters cover pollution costs.
#5
What is the tragedy of the commons?
When resources are depleted due to overuse
ExplanationTragedy of the commons: overuse leading to resource depletion.
#6
Which economic instrument aims to internalize externalities by imposing a cost on polluters?
Taxes
ExplanationTaxes: imposing costs on polluters to internalize externalities.
#7
What is the concept of 'cap and trade'?
Limiting the amount of pollution a company can emit and allowing them to trade permits
Explanation'Cap and trade': limit pollution, trade permits to reduce emissions.
#8
Which of the following is NOT a characteristic of a common-pool resource?
Excludability
ExplanationCommon-pool resources lack excludability, making exclusion difficult.
#9
What is the tragedy of the anti-commons?
When resources are underused due to excessive regulation
ExplanationTragedy of the anti-commons: underuse from excessive regulation.
#10
Which economic theory suggests that common resources can be sustainably managed through communal ownership?
Common property theory
ExplanationCommon property theory: communal ownership for sustainable resource management.
#11
What is meant by the term 'externality' in environmental economics?
The unintended consequences of economic activity affecting third parties
ExplanationExternality: unintended impacts on third parties from economic activity.
#12
What is the tragedy of the anticommons?
When resources are underused due to excessive regulation
ExplanationTragedy of the anticommons: underuse due to excessive regulation.