Deck 9: Atmosphere and Air Pollution

Question 1

is the study of how we decide to use scarce resources in the face of demand.

A) Ecology
B) Economics
C) Ethics
D) Environmental science

Answer 1

B

Question 2

Read the following scenario, and answer the questions below.
As an economist, you are asked to analyze the present versus future value of fossil fuel resources in a newly discovered oil field. You determine that the oil (which would take 1 year to extract) is estimated to be worth $10 million in today's market.
Someone presenting a deontological argument for not poaching elephants for their ivory would argue that doing so .

A) robs elephants of a full and happy life
B) costs more in lost tourism than is gained by the sale of ivory
C) would be acceptable, but only if more economic gain occurs from selling the ivory than is lost in tourism income
D) violates international laws

Answer 2

D

Question 3

Read the following scenario, and answer the questions below.
As an economist, you are asked to analyze the present versus future value of fossil fuel resources in a newly discovered oil field. You determine that the oil (which would take 1 year to extract) is estimated to be worth $10 million in today's market.
Someone with a(n) _ _ perspective might argue that the loss of wildlife that results from DDT contamination is ethically defensible because of the human lives saved by using DDT to kill the insects that spread disease.

A) utilitarianism
B) deontological
C) ecocentrism
D) biocentrism

Answer 3

A

Question 4

The intersection of the two lines on the graph represents .

A) the convergence point, which is the point at which the supply and demand curves converge
B) the equilibrium point, which is the price at which consumers are willing to pay given the quantity that producers are willing to make
C) the convergence point, which is the quantity that consumers will buy when the product costs a certain amount
D) the equilibrium point, which is the quantity of product a manufacturer is willing to produce in a declining economy

Question 5

Read the following scenario, and answer the questions below.
As an economist, you are asked to analyze the present versus future value of fossil fuel resources in a newly discovered oil field. You determine that the oil (which would take 1 year to extract) is estimated to be worth $10 million in today's market.
Which of the following statements is true regarding the United States and global gross domestic products (GDPs)?

A) U.S. and global GDPs have both rapidly increased over the past century.
B) U.S. versus global GDP values are difficult to compare because GDP calculations in the United States include factors such as volunteerism and happiness that are ignored in most other countries' GDP calculations.
C) U.S. and global nominal GDPs have both declined over the past decade as pollution control and global warming have become more problematic.
D) Although the nominal GDPs of the United States and the world have been increasing, the real GDPs have been at roughly the same levels since the year 2000.

Question 6

Read the following scenario, and answer the questions below.
As an economist, you are asked to analyze the present versus future value of fossil fuel resources in a newly discovered oil field. You determine that the oil (which would take 1 year to extract) is estimated to be worth $10 million in today's market.
You are asked to advise whether to immediately begin extracting the oil or wait 5 years to begin extraction. If the annual interest rate is 5%, at least how much would the oil have to be worth in the future market for you to advise waiting 5 years to begin extraction? Assume that you are asked to base your recommendation solely on the money earned.

A) Approximately $20 million
B) Approximately $10.5 million
C) Approximately $13 million
D) Approximately $12 million

Question 7

In a developing country experiencing rapid economic growth, we would expect _ .

A) wages for manual labor to decline
B) a growing problem with health issues related to pollution
C) the economy to rapidly decline to its original level, since economies tend to return to their equilibrium point
D) unemployment rates to rapidly rise

Question 8

Read the following scenario, and answer the questions below.
As an economist, you are asked to analyze the present versus future value of fossil fuel resources in a newly discovered oil field. You determine that the oil (which would take 1 year to extract) is estimated to be worth $10 million in today's market.
The money made on the oil would be worth approximately after 10 years if it were immediately extracted and the proceeds were immediately invested at an annual interest rate of 7%.

A) $10.7 million
B) $10 million
C) $17 million
D) $20 million

Question 9

Read the following scenario, and answer the questions below.
As an economist, you are asked to analyze the present versus future value of fossil fuel resources in a newly discovered oil field. You determine that the oil (which would take 1 year to extract) is estimated to be worth $10 million in today's market.
What is the term for the economic practice that you are being asked to do by assessing present versus future value of the resource?

A) Temporal market valuation
B) Discounting
C) Cost/benefit analysis
D) Resource rating

Question 10

The EPA's cost/benefit analysis of air pollution regulation in the United States indicates that .

A) air pollution standards may be too strict, since the costs of compliance slightly outweigh the benefits
B) the costs of being in compliance with the regulations are negligible
C) the benefits and costs of the regulations are about equal, so the standards are at the economic break- even point
D) although costly, the costs are far outweighed by benefits in illness and mortality prevention

Question 11

When a commodity is in short supply, the cost .

A) remains the same
B) is near the cost of production
C) decreases
D) goes up

Question 12

Externalities include .

A) the costs of raw materials
B) worker's compensation and insurance
C) wages
D) the costs of environmental damage

Question 13

Read the following scenario, and answer the questions below.
As an economist, you are asked to analyze the present versus future value of fossil fuel resources in a newly discovered oil field. You determine that the oil (which would take 1 year to extract) is estimated to be worth $10 million in today's market.
Environmental ethics .

A) is the study of the economic value of all living things in their environment
B) is the extrinsic value placed on people, organisms, and objects in the environment
C) are the rules and values humans use to guide environmental decisions
D) are the actions taken by humans in the environment in which they live

Question 14

Which of the following indices is most likely to increase as a result of people spending money to rebuild or relocate after a hurricane wipes out their town?

A) GNH
B) BLI
C) GPI
D) GDP

Question 15

is the difference between the cost to produce a product and its price in the marketplace.

A) Discount rate
B) Economic value
C) Profit
D) Demand

Question 16

This graph illustrates .

A) how price dictates the supply of and demand for a product or service
B) how the supply of a product or service dictates demand for it
C) how supply and demand dictate the price of a product or service
D) how the demand for a product dictates its price

Question 17

Which of the following would be considered a nonrenewable resource?

A) Wind energy
B) Sunlight
C) Gold
D) Timber

Question 18

The GDP of the United States _.

A) includes a positive adjustment for parenting, volunteerism, and health and wellness.
B) has decreased dramatically since 1950
C) increases when resource extraction and consumption increase
D) is far below that of the rest of the world

Question 19

Which of the following most accurately describes "human capital" in a market system?

A) The skills of the workforce
B) The central location where humans exchange goods and services
C) The natural resources used by humans to produce goods and services
D) The tools, machines, infrastructure, and other built resources that can be used by humans to produce goods and services

Question 20

Rocky Mountain National Park is one of the most visited national parks in the United States. Economic consideration of the value of the park would include consideration of the tourism created by the existence of the park. The value of this kind of tourism would be considered a(n) value of the park.

A) existence
B) direct use
C) indirect use
D) option

Question 21

Both the gross domestic product (GDP) and genuine progress indicator (GPI) can be used as a measure of the wealth of a nation. Explain the difference between the GDP and GPI.

Question 22

Which of the following is a tenet of conventional economic theory?

A) Externalities are valuable.
B) Resources are finite.
C) Growth is good.
D) Long- term effects and planning are important.

Question 23

Discount rates are used to determine the .

A) intrinsic value of renewable resources
B) aesthetic value of natural assets
C) current value of an asset based on future value
D) future value of an asset

Question 24

The collapse of a fishery could be blamed on all of the following except .

A) misuse of a common pool resource
B) tragedy of the commons
C) inadequate structural design
D) overharvesting marine resources

Question 25

GPI is an acronym for .

A) Gas Price Index
B) Good Parent Index
C) Global Price Indicator
D) Genuine Progress Indicator

Question 26

Describe how the laws of supply and demand combine to dictate the price of a product.

Question 27

The GDP includes all of the following in its measures of economic growth except .

A) the income from the sales of goods abroad
B) human well- being
C) medical costs
D) the costs of replacing outdated equipment used on farms and in industrial manufacturing

Question 28

Examine the trends in the GDP and GPI. The GPI has remained fairly level because of .

A) increased education, better social programs, and overall reductions in crime
B) the increased environmental and social costs of economic activity
C) the decreased environmental and social costs of economic activity
D) the failure to include the depreciation of natural capital and ecosystem services

Question 29

If a nonrenewable resource such as oil suddenly becomes scarce while demand remains constant, the .

A) price of the resource would increase
B) price of the resource would remain unchanged
C) demand would cause the supply to increase
D) price of the resource would decrease

Question 30

In 1968, an ecologist named Garrett Hardin published a paper describing the "tragedy of the commons," which he described as occurring when individual self- interest inevitably leads to overuse and abuse of a shared resource. Which of the following types of resources is the kind of shared resource that Hardin described in his paper?

A) A common pool resource
B) A finite resource
C) An economic resource
D) A renewable resource

Question 31

A(n) would evaluate a decision or action based solely on its potential impact on human health, economic welfare, and aesthetics.

A) ecocentrist
B) anthropocentrist
C) ethnocentrist
D) biocentrist

Question 32

Mahogany is a tree found in the tropical rain forests of Central and South America. Mahogany lumber is prized for its beauty, durability, and color. Overharvesting of mahogany has led to the tree being classified as threatened, and there are international laws banning its harvest and trade. Although an anthropocentrist, biocentrist, and ecocentrist might all agree that it is important to protect mahogany trees, they would disagree on the reasons for doing so. Explain how they would differ in their reasoning.