Question 1

The provision of ecosystem services

Accepted Answer

A)  Are essential for supporting and sustaining life. 
B)  Are not fully accounted for by the market-clearing price. 
C)  Have been overlooked by neoclassical economists. 
D)  None of the above. 
E)  All of the above. 
A)  Are essential for supporting and sustaining life. 
B)  Are not fully accounted for by the market-clearing price. 
C)  Have been overlooked by neoclassical economists. 
D)  None of the above. 
E)  All of the above. E

Question 2

Neoclassical economists are fully aware of the critical significance of ecosystem services
 to humans.

Accepted Answer

A) True 
 B)False  True

Question 3

The natural environment is assumed to depend on which of the following?

Accepted Answer

A)  Extraction of non-renewable resources. 
B)  Extraction of renewable resources. 
C)  Sunlight. 
D)  Humans. 
E)  All of the above. 
A)  Extraction of non-renewable resources. 
B)  Extraction of renewable resources. 
C)  Sunlight. 
D)  Humans. 
E)  All of the above. C

Question 4

Only environmental resources, unlike economic resources, such as capital and labor, are
 considered to be scarce resources.

Accepted Answer

A) True 
 B)False

Question 5

Economics approach is called anthropocentric because

Accepted Answer

A)  Environmental resources are deemed to have no intrinsic value. 
B)  Environmental resources are evaluated based on their uses to all living beings, human or
 non-human. 
C)  Environmental degradation is considered unacceptable, even if benefits to humans are
 accrued. 
D)  All of the above. 
E)  None of the above. 
A)  Environmental resources are deemed to have no intrinsic value. 
B)  Environmental resources are evaluated based on their uses to all living beings, human or
 non-human. 
C)  Environmental degradation is considered unacceptable, even if benefits to humans are
 accrued. 
D)  All of the above. 
E)  None of the above.

Question 6

It is possible to substitute natural capital with human-made capital and vice-versa to
 produce a desired level of output.

Accepted Answer

A) True 
 B)False

Question 7

An ecosystem service, such as bee pollination, is dramatically increase because of reduction in pesticide use. How would this influence the opportunity cost for an apple orchard that relies on bees for pollination of their apple trees?

Accepted Answer

A)  It would not affect the opportunity cost 
B)  It would increase the opportunity 
C)  It would decrease the opportunity cost 
D)  From an economic standpoint, opportunity cost should not be an issue 
E)  None of the above 
A)  It would not affect the opportunity cost 
B)  It would increase the opportunity 
C)  It would decrease the opportunity cost 
D)  From an economic standpoint, opportunity cost should not be an issue 
E)  None of the above

Question 8

Market prices are market-clearing prices because they fully account for all the costs of
 either extracting or using resources.

Accepted Answer

A) True 
 B)False

Question 9

Market price is an indicator of absolute scarcity.

Accepted Answer

A) True 
 B)False

Question 10

Consider the following substitution possibility graph. Assume that the output level (i.e. Economic production) is the same for each line (Q0 = Q1 = Q2). Which of the following statements is correct?

Accepted Answer

A)  Any point along Q2 represents a combination of resource outputs that
 requires more natural capital relative to any point along Q1 or Q2. 
B)  Any point along Q2 represents a combination of resource outputs that
 requires more human-made capital relative to any point along Q0 or Q1. 
C)  Any point along Q0 represents a combination of resource outputs that
 requires more human-made capital relative to any point along Q1 or Q2. 
D)  Both a and b 
E)  None of the above 
A)  Any point along Q2 represents a combination of resource outputs that
 requires more natural capital relative to any point along Q1 or Q2. 
B)  Any point along Q2 represents a combination of resource outputs that
 requires more human-made capital relative to any point along Q0 or Q1. 
C)  Any point along Q0 represents a combination of resource outputs that
 requires more human-made capital relative to any point along Q1 or Q2. 
D)  Both a and b 
E)  None of the above

Question 11

A free market system

Accepted Answer

A)  Allows for the determination of absolute scarcity by constructing a ratio of
 two market-clearing prices 
B)  Provides information about the scarcity values of non-renewable resources
 only 
C)  Exhibits a shortage when the supply of a resources exceeds the demand of
a resource 
D)  None of the above 
E)  All of the above 
A)  Allows for the determination of absolute scarcity by constructing a ratio of
 two market-clearing prices 
B)  Provides information about the scarcity values of non-renewable resources
 only 
C)  Exhibits a shortage when the supply of a resources exceeds the demand of
a resource 
D)  None of the above 
E)  All of the above

Question 12

The opportunity cost of a particular activity

Accepted Answer

A)  Is always unknown with certainty. 
B)  Is a concept applicable to ecological economics, but not to the neoclassical approach. 
C)  Usually decreases as more of that activity is pursued. 
D)  Increases when more environmental resources need to used to substitute for the same
 amount of other factors of production. 
E)  None of the above. 
A)  Is always unknown with certainty. 
B)  Is a concept applicable to ecological economics, but not to the neoclassical approach. 
C)  Usually decreases as more of that activity is pursued. 
D)  Increases when more environmental resources need to used to substitute for the same
 amount of other factors of production. 
E)  None of the above.

Question 13

Technological advance implies a possibility of producing a given level of
 output with less of any resources, with the exception of the environment.

Accepted Answer

A) True 
 B)False

Question 14

Correcting for possible market price distortions

Accepted Answer

A)  Is required because prices deliver perfect information on absolute scarcity 
B)  Is challenging because most ecosystem services are easily traded through
 normal market mechanisms 
C)  Is easily done because it is known that that ecosystem services are
 valuable 
D)  Allows one to estimate the value ecosystem services 
E)  All of the above 
A)  Is required because prices deliver perfect information on absolute scarcity 
B)  Is challenging because most ecosystem services are easily traded through
 normal market mechanisms 
C)  Is easily done because it is known that that ecosystem services are
 valuable 
D)  Allows one to estimate the value ecosystem services 
E)  All of the above

Question 15

The anthropocentric economic view implies that environmental services have no intrinsic
 value.

Accepted Answer

A) True 
 B)False

Question 16

The provision of ecosystem services is essential for supporting and sustaining life, and by
 extension, is also necessary for the human economy to function.

Accepted Answer

A) True 
 B)False

Question 17

Technological advancement is the ability to produce a given amount of output by using
 less of all inputs.

Accepted Answer

A) True 
 B)False

Question 18

Neoclassical economics is the dominant approach to economic analyses.

Accepted Answer

A) True 
 B)False

Question 19

In many respects, there is little trade-off between economic goods and services and the
 preservation of the quality of the natural environment.

Accepted Answer

A) True 
 B)False

Question 20

Factor substitution suggests that basic resources do not need to be used in combinations.

Accepted Answer

A) True 
 B)False

The provision of ecosystem services

Neoclassical economists are fully aware of the critical significance of ecosystem services to humans.

The natural environment is assumed to depend on which of the following?

Only environmental resources, unlike economic resources, such as capital and labor, are considered to be scarce resources.

Economics approach is called anthropocentric because

It is possible to substitute natural capital with human-made capital and vice-versa to produce a desired level of output.

An ecosystem service, such as bee pollination, is dramatically increase because of reduction in pesticide use. How would this influence the opportunity cost for an apple orchard that relies on bees for pollination of their apple trees?

Market prices are market-clearing prices because they fully account for all the costs of either extracting or using resources.

Market price is an indicator of absolute scarcity.

Consider the following substitution possibility graph. Assume that the output level (i.e. Economic production) is the same for each line (Q0 = Q1 = Q2). Which of the following statements is correct?

A free market system

The opportunity cost of a particular activity

Technological advance implies a possibility of producing a given level of output with less of any resources, with the exception of the environment.

Correcting for possible market price distortions

The anthropocentric economic view implies that environmental services have no intrinsic value.

The provision of ecosystem services is essential for supporting and sustaining life, and by extension, is also necessary for the human economy to function.

Technological advancement is the ability to produce a given amount of output by using less of all inputs.

Neoclassical economics is the dominant approach to economic analyses.

In many respects, there is little trade-off between economic goods and services and the preservation of the quality of the natural environment.

Factor substitution suggests that basic resources do not need to be used in combinations.

The Natural Environment and the Human Economy: an Ecological Perspective

Ecological and Technological Determinants of the Trade-Off Between Economic Activity and Environmental Quality

The Economic Theory of Pollution Control

The Economics of Environmental Regulation I: Emission Standards and Effluent Charge

The Economics of Environmental Regulation Ii: Transferable Emission Credits, and the Macroeconomic Effects of Environmental Regulation

Alternative Methods of Valuation of Environmental Goods and Services

Frameworks for Assessing the Worthiness of Environmental Projects

The Economics of Climate Change

The Economics of Biodiversity

Biophysical Limits to Economic Growth: the Malthusianneo-Malthusianecological Economics Perspectives

Biophysical Limits to Economic Growth: the Neoclassical Perspective

The Economics of Sustainability

Green Accounting and Alternative Indicators of Sustainability

Filters

Exam 1: The Natural Environment and the Human Economy: the Neoclassical Perspective

The provision of ecosystem services

Neoclassical economists are fully aware of the critical significance of ecosystem services to humans.

The natural environment is assumed to depend on which of the following?

Only environmental resources, unlike economic resources, such as capital and labor, are considered to be scarce resources.

Economics approach is called anthropocentric because

It is possible to substitute natural capital with human-made capital and vice-versa to produce a desired level of output.

An ecosystem service, such as bee pollination, is dramatically increase because of reduction in pesticide use. How would this influence the opportunity cost for an apple orchard that relies on bees for pollination of their apple trees?

Market prices are market-clearing prices because they fully account for all the costs of either extracting or using resources.

Market price is an indicator of absolute scarcity.

Consider the following substitution possibility graph. Assume that the output level (i.e. Economic production) is the same for each line (Q0 = Q1 = Q2). Which of the following statements is correct?

A free market system

The opportunity cost of a particular activity

Technological advance implies a possibility of producing a given level of output with less of any resources, with the exception of the environment.

Correcting for possible market price distortions

The anthropocentric economic view implies that environmental services have no intrinsic value.

The provision of ecosystem services is essential for supporting and sustaining life, and by extension, is also necessary for the human economy to function.

Technological advancement is the ability to produce a given amount of output by using less of all inputs.

Neoclassical economics is the dominant approach to economic analyses.

In many respects, there is little trade-off between economic goods and services and the preservation of the quality of the natural environment.

Factor substitution suggests that basic resources do not need to be used in combinations.

The Natural Environment and the Human Economy: an Ecological Perspective

Ecological and Technological Determinants of the Trade-Off Between Economic Activity and Environmental Quality

The Economic Theory of Pollution Control

The Economics of Environmental Regulation I: Emission Standards and Effluent Charge

The Economics of Environmental Regulation Ii: Transferable Emission Credits, and the Macroeconomic Effects of Environmental Regulation

Alternative Methods of Valuation of Environmental Goods and Services

Frameworks for Assessing the Worthiness of Environmental Projects

The Economics of Climate Change

The Economics of Biodiversity

Biophysical Limits to Economic Growth: the Malthusianneo-Malthusianecological Economics Perspectives

Biophysical Limits to Economic Growth: the Neoclassical Perspective

The Economics of Sustainability

Green Accounting and Alternative Indicators of Sustainability

Filters