EXAM 6 REVIEW – Flashcards

Which of the examples below illustrates the economic principle of a negative externality? a. cost of transportation of goods from the site of production to a market b. cost of labor to produce a product c. cost of rebuilding roads damaged by trucks heavily loaded with goods d. cost or benefit of a transaction that involves the buyer or seller when both parties lose money

Adam Smith was the first to articulate the view that _______. a. individuals acting in self-interest would benefit society (as long as the behavior was constrained by private property rights) b. markets must be regulated to control the negative effects on society c. individuals would benefit society no matter what form of economics were in place d. individuals acting in self-interest would harm society

Which process helps consumers tell which brands use processes believed to be environmentally beneficial and which brands do not? a. ecolabeling b. envirolabeling c. Energy Star labeling d. Ecodocuments

Economists assess the economic health of a nation by calculating its _______. a. gross primary productivity b. Gross Domestic Product c. net primary productivity d. net domestic product

The Mirarr aborigines value land, plants, and animals as sacred. This philosophy is closest to _______. a. ecocentrism b. egocentrism c. biocentrism d. anthropocentrism

The book that expanded the community to include "soils, waters, plants, and animals or collectively: the land" was called _______. a. The Land Ethic b. A Sand County Almanac c. Our Stolen Future d. Silent Spring

The environmental justice movement started because _______. a. corporate polluters were not serving jail time for breaking environmental laws b. the Environmental Protection Agency was not doing its job c. people realized that environmental damage is not equally distributed among all classes and racial groups; minority and low-income communities tend to contain a much larger share of the environmental damage (such as landfills, incinerators, toxic waste sites, etc.) d. Aldo Leopold published The Land Ethic.

What are nonmarket values? a. the cost of health care associated with toxic foods b. the cost of disposing of the waste that is associated with manufacturing certain products c. taxes encountered after a purchase d. values for items such as ecosystem services that are not usually included in the price of a good or service

In which of the following ways did neoclassical economics contribute to environmental problems? a. by encouraging governments to give subsidies to environmentally damaging businesses b. by encouraging society to view the supply of resources as infinite c. by encouraging industry continually to improve technology d. by forcing buyers to pay for ecosystem services

What is meant by "market failure" as relates to economic theory? a. External costs and benefits are added into cost-benefit calculations. b. The market does not reflect the total and true costs and benefits of actions. c. The national GDP drops. d. Economists are forced to use contingent valuation rather than rely on direct costs and benefits.

_______ ascribes equal value to all living things and says that because we are inseparable from our living environment we must protect all other living things as we would protect ourselves. a. Environmentalism b. Ecocentrism c. Biocentrism d. Evolution

The conservation ethic suggested that _______. a. land should be preserved in the natural environment in a pristine, unaltered state b. resources should be used from natural areas but in a responsible way such that they are not depleted c. citizens be required to recycle d. land be put aside for national parks so that only the government can have access to it

How does the GDP (Gross Domestic Product) differ from the GPI (Genuine Progress Indicator)? a. GDP does not include items bought and sold over the Internet. Critics say that this makes the GDP out of date and came up with the GPI to add these purchases into the calculations. b. The GPI takes into account externalities (both good and bad) and other nonmarket values, while the GDP does not. c. The GDP only makes calculations for a single calendar year, while the GPI looks at historical trends and projects into the future. d. GPI calculates the total value of goods and services, while the GDP focuses on just the goods produced.

Ecosystem goods include _______. a. items produced by ecosystems that are consumed or used in manufacturing b. the physical and intellectual abilities of people c. biodiversity in healthy ecosystems d. essential services such as water purification and carbon dioxide production

In a subsistence economy, individuals _______. a. live in harmony with their environment and do not pose a threat to it b. meet most of their needs from nature, but may trade for local goods made by different clans or families c. attempt to acquire large amounts of wealth and goods as a status symbol d. choose to refrain from participation in advanced society and trade

Two individuals can look at the same environmental problem and come up with exactly the opposite solution, although both individuals have sound explanations based on their culture. This reflects a difference in _____. a. worldview b. prejudices c. GPI d. GDP

A universalist would argue that an ethical standard like _____ exists across all cultures and contexts. a. the utilitarian value b. the intrinsic standard c. biocentrism d. the categorical imperative

If someone said, "Earth and all of its contents were created for the betterment of human beings, so as long as something is good for humans, it is good for the whole Earth," they could hold the _____ view. a. biocentric b. anthropocentric c. ecocentric d. GDP

During what century did consumption of natural resources and pollution increase dramatically for the first time in human history? a. The 19th century b. The first century c. The 15th century d. The 21st century

Two scientists are debating the responsibility of humans to the environment. The first debater says, "We should maintain the environment in its most natural state as if we hadn't been here at all." The second says, "We should use the environmental resources available to us but not abuse them." Which two scientists discussed in this chapter would have made these comments, respectively? a. Muir; Pinchot b. Hetchy; Muir c. Pinchot; Hetchy d. Emerson; Thoreau

Members of the _____ movement would be very concerned about the unequal exposure of members of a certain race to pollution. a. human population b. preservationist c. conservationist d. environmental justice

Most families in a country are farmers. Each family produces just enough food and material goods for it to survive each year. This country has a _____ economy. a. service b. centrally planned c. capitalist d. subsistence

A country based on _____ would relate most easily with the ideas asserted by Adam Smith. a. capitalism b. environmental justice c. subsistence d. ecofeminism

While in the grocery store, Maria chooses to purchase the soy milk produced from nongenetically modified soybeans over the brand grown conventionally. Maria has made use of _____ for her decision. a. market analysis b. green accounting c. GDP d. ecolabeling

A company that produces household cleaners decides to produce a "green" version of its products, even though the formulas are virtually unchanged compared to the original formulas. This is an example of _______. a. ecolabeling b. whitewashing c. greenwashing d. ecofeminism

An anthropocentric worldview would consider the impact of an action on: a) Humans only b) Animals only c) Plants only d) All living things e) All nonliving things

Which ethic holds that unspoiled nature should be protected for its own intrinsic value? a) Land ethic b) Preservation ethic c) Conservation ethic d) Deep ecology e) Biocentrism

Which of the following is an ecosystem service? a) Water purification in wetlands b) Climate regulation in the atmosphere c) Nutrient cycling in ecosystems d) Waste treatment by bacteria e) All of the above are ecosystem services

Which is NOT an assumption of neoclassical economics that can lead to environmental degradation? a) Resources are unlimited b) Long-term effects are downplayed c) Costs and benefits are experienced by buyers, sellers, and the public d) Growth is good

Which of the following statements would be spoken by an environmental economist? a) The current economic system is working well. b) The current economic system simply needs to be fine-tuned. c) The current economic system is broken and a new one needs to be developed. d) Economic systems never work.

Market equilibrium, which sets the price of a product, is reached: a) When supply exceeds demand b) When demand exceeds supply c) By demand when quantity is low, and supply when quantity is high d) When supply equals demand