Question 1

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

Accepted Answer

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. D

Question 2

Sustainability is defined as a practice that

Accepted Answer

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. C

Question 3

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

Accepted Answer

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. A

Question 4

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.

Accepted Answer

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

Question 5

Community resilience is defined as the ability

Accepted Answer

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 6

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

Accepted Answer

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

Question 7

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

Accepted Answer

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

Question 8

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

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

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

Accepted Answer

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 11

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

Accepted Answer

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

Question 12

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

Accepted Answer

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 13

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.

Accepted Answer

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

Question 14

Open access resources promote a __________ situation.

Accepted Answer

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

Question 15

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.

Accepted Answer

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

Question 16

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

Accepted Answer

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 17

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

Accepted Answer

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

Question 18

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

Accepted Answer

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

Question 19

For many environmental problems, population exposure is likely

Accepted Answer

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 20

Climate change impacts on low-lying, coastal areas include

Accepted Answer

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

Exam 21: Economic Development and the Environment