Deck 21: Economic Development and the Environment

Question 1

Though relationships between income and environmental quality are not inevitable, there are some general trends that have been revealed. Studies show that as a country's per capita income rises

A) exposure to CO₂ emissions decrease.
B) exposure to particulate solids wastes decrease.
C) exposure to particulates and sulfur dioxide (SO₂) first decrease and then increase.
D) access to safe water and adequate sanitation rise.

Answer 1

D

Question 2

Developing countries are mainly concerned with water and air pollution in their own countries. Pressing concernsinclude

A) water supplies that are responsible for death and disease.
B) river waters that have become contaminated with heavy metals and toxic chemicals.
C) seepages from industrial sites and waste dumps that threaten ground water.
D) All of the above.

Answer 2

D

Question 3

In the simplest terms possible, the total impact of people on environmental resources can be expressed as

A) Total environmental impact= Environmental impact per person X Number of people.
B) Total Resource Base Reductions = Total Resource Base / Number of people.
C) Total environmental impact = Impact per person / Number of people.
D) Total Resource Base Reductions = Resources used per person X people per captia.

Answer 3

A

Question 4

Refer to the figure above. When emphasizing the trade-off depicted in the PPC graph above, the fact that the environmental goods and GDP can be _______ goods is ignored.

A) normal
B) substitute
C) complimentary
D) luxury

Question 5

For many environmental problems, population exposure is likely

A) dependent upon technology choices that are adopted within a country.
B) dependent upon the preferences of the citizens residing in the country.
C) to decrease with economic development.
D) All of the above.

Question 6

Refer to the figure above. Curve A represents the trade-off between market goods and environmental quality in a developed country. Curve B represents the same in a less-developed country. In order for both firms to achieve the same level of marketed output (c₁), Country can attain ________ levels of environmental quality.

A) higher
B) lower
C) equivalent
D) indeterminate

Question 7

In the face of extensive poverty, willingness to pay measures may be _______.

A) small
B) large
C) immeasurable
D) impractical

Question 8

Economic development is measured by

A) an increase in the aggregate level of output.
B) an increase in per capita output.
C) an increase in economic activity without any underlying change in the fundamental structure and institutions of a country.
D) All of the above.

Question 9

An example of a type of policy that creates distortions in local economies is government subsidies for pesticide use by farmers. The distortion effects include

A) heavy pesticide exposure for farm workers.
B) overuse of agricultural chemicals by farmers.
C) rapid development of immunity by targeted pests.
D) All of the above.

Question 10

The lack of management of common-property externalities is often a property rights problem caused by the lack of __________ that assigns individual or small-group property rights.

A) an institution
B) tax law
C) a market
D) political pressure

Question 11

Though relationships between income and environmental quality are not inevitable, there are some general trends that have been revealed. Studies show that as a country's per capita income rises

A) exposure to CO₂ emissions increase.
B) exposure to municipal solid wastes increase.
C) exposure to particulates and sulfur dioxide (SO₂) first increase and then decrease.
D) All of the above.

Question 12

Community resilience is defined as the ability

A) of a community to re-build after a disaster.
B) to absorb financially displaced members of society.
C) to embrace an increased refugee population.
D) All of the above.

Question 13

Sustainability is defined as a practice that

A) shifts the PPC to the left.
B) relies on nonrenewable resources.
C) does not reduce the long-run productivity of a country's natural resource assets on which income and development depend.
D) All of the above.

Question 14

Open access resources promote a __________ situation.

A) pay as you use
B) pay when you can
C) use-it-or-lose-it
D) tax and trade

Question 15

One of the issues of measuring benefits in developing countries is that the willingness to pay requires

A) the use of an estimated discount rate.
B) ability to pay.
C) understanding peoples' tastes and preferences.
D) None of the above.

Question 16

People in developing countries, especially those with very low incomes, discount the future _________.

A) at an arbitrary rate
B) at a low rate
C) at a high rate
D) None of the above.

Question 17

Economic growth is measured by

A) an increase in the aggregate level of output.
B) an increase in per capita output.
C) a set of technological, institutional and social transformations.
D) All of the above.

Question 18

As peoples' incomes ________, they are more likely to sacrifice for a/an ________ environmental quality.

A) increase; improvement in
B) decrease; improvement in
C) increase; deterioration in
D) None of the above.

Question 19

When developing environmental policy for developing economies, there is a critical need to

A) restrict energy use to renewable sources.
B) understand the benefits and costs of alternative policies.
C) consult the World Health Organization about the health effects of pollution.
D) maximize development initially because citizens will value environmental assets more once their income has increased.

Question 20

When a positive discount factor is used, the discounted value of long-run environmental damage contributes to _______.

A) inaccurate valuation of the future
B) lost productivity
C) maintaining intergenerational equity
D) differences in intergenerational equity

Question 21

For developing countries, the Paris Agreement promotes

A) green technology transfers
B) building country resiliency
C) sharing solutions for global warming
D) all of above

Question 22

Sustainable practices focus on keeping ___________ capital productive.

A) human
B) physical
C) institutional
D) all of the above

Question 23

Increasing incomes are almost always associated with

A) lower municipal waste.
B) lowered fertility rates.
C) lower carbon dioxide (CO₂) per capita.
D) decreased access to safe water.

Question 24

Climate change impacts on low-lying, coastal areas include

A) population displacement
B) people moving inland
C) decrease in fisheries
D) all of above

Question 25

Developed countries should focus on _________ in supporting developing countries environmental initiatives.

A) population control
B) technology transfer
C) international mandates
D) trade restrictions

Question 26

Improving environmental quality will cause the production possibilities curve for less-developed countries to

A) shift upward
B) shift downward
C) not change market output
D) become convex to the origin

Question 27

Some of the most egregious cases of environmental damage in developing countries are projects that had direct involvement from

A) the United States.
B) the World Health Organization.
C) the North American Free Trade Agreement.
D) international aid organizations.

Question 28

A practice is sustainable if

A) only renewable resources are used
B) irreversible reductions in resources are replenished
C) all resources are used slowly
D) the long-run productivity of resources is not reduced

Question 29

In developing countries, ________ is/are the dominant trend in environmental policy.

A) command and control
B) incentives
C) cap and trade
D) emissions taxes

Question 30

Because developing countries typically have lower GDPs per capita than developed countries, it becomes especially important for their environmental policies to be cost-effective. This statement would support

A) emissions standards.
B) technology based emission standards.
C) command and control policies.
D) incentive based policies.

Question 31

Payment for Environmental Services (PES) programs are

A) incentive programs that offer monetary payments to people who engage in environmental conservation activities.
B) command and control policies that pay participants for participation in reduction programs.
C) emissions tax programs that charge people for specific types of emissions.
D) technology standards programs that offer subsidies to people who buy specific technology that reduces their emissions.

Question 32

In environmental policy, the term technology transfer refers to

A) the marketing of environmental technology from private companies to public entities.
B) the technology and carbon intensity differential between trading countries.
C) the transfer of revenue gained from technology transfers from private to public entities.
D) the transfer of skills and technology from developed to developing countries that allows for economic development with lower environmental impacts.

Question 33

National Adaption Plans (NAPs) set by the Paris Agreement identify

A) steps to reduce carbon emissions in developing countries
B) steps to reduce impact of climate change in developing countries
C) identifies funding goals for developing countries to attain
D) provides funding for developing countries to develop their own technology

Question 34

Conditional Cash Transfers (CCTs) are

A) incentive programs that offer cash payments conditional on recipients engaging in socially productive activities.
B) command and control policies that pay participants for participation in emission reduction programs.
C) emissions tax programs that charge people for specific types of emissions.
D) technology standards programs that offer subsidies to people who buy specific technology that reduces their emissions.

Question 35

The total environmental impact of a country is equal to the size of the population times

A) the amount of CO₂ emitted per person
B) the environmental impact per person
C) the level of income per person in that country
D) the number of environmental treaties entered into by that country