Topic 3: Environmental Decision Making

Which of the following is an assumption of modern, 21st-century economics?

• economic growth is good
• resources are infinite
• internal costs and benefits are valuable and always considered
• all citizens deserve just and equal treatmnent

The National Environmental Policy Act (NEPA) 

• puts all federal land under environmental oversight and protection 
• requires compensation be given to anyone harmed by pollution from a business or corporate entity
• requires environmental impact statements for any federal project 
• protects all endangered species from international trade

A(n) ___ is best defined as one who evaluates an action based on its impact on air and water quality

• biocentrist
• ecocentrist
• anthropocentrist
• ethnocentrist

A cap-and-trade system

• allows for industries to set their own levels for pollution emissions so that trading can continue
• has recently been repealed by Congress as useless in diminishing pollution
• specifies a certain cap on industrial pollutants that can be traded to other nations
• permits industries that pollute under the federal limit to sell credits to industries that pollute over the limit

A cost-benefit analysis for a public project always includes

• the internal costs 
• the external costs
• the GDP
• the GNP

Regarding environmental laws and the U.S. Constitution 

• state laws take precedence over federal laws
• federal laws can override the Constitution if a waiver fee is paid 
• fundamental environmental policy is always set forth by the Constitution 
• federal environmental legislation always takes precedence over state laws

Environmental economists believe that within a market economy, economic sustainability will be best achieved by

• reducing population growth
• employing a greater environmental justice approach 
• including internal costs and benefits of all future development and endeavors 
• reducing of economic growth and using resources more efficiently

The polluter-pays principle is an economic policy tool also referred to as 

• federal subsidies 
• ecolabeling 
• a cap-and-trade system 
• green taxes 

External costs include

• an employee's wages 
• energy costs t operate a factory 
• acid rain damage caused by factory
• worker's compensation and insurance coverages

One of the most effective international environmental treaties to date is the 

• Kyoto Protocol
• Montreal Protocol
• CITES
• NEPA