Environmental Economics Quiz

Since 1989

• The Tennessee River, which flows through Chattanooga, Tennessee, has been bubbling with toxic waste.

• The U.S. government has rated the air in Chattanooga, Tennessee, as the dirtiest in the country.

• The levels of the seven major air pollutants in Chattanooga, Tennessee, have been higher than allowed by federal standards.

• The levels of the seven major air pollutants in Chattanooga, Tennessee, have been lower than those required by federal standards.

• The city center has become a deserted, crime-infested area.

Chattanooga’s environmental success story is an example of how

• Ethics, economics, and politics can be used to solve environmental problems.

• Top-down changes can solve environmental problems.

• Environmental policies do not need the endorsement of common citizens.

• Federal funding solves environmental problems.

• None of these answers.

In a market-based economic system, economic decisions about prices are made by

• supply and demand

• the government

• past customs and experience

• the banks

• none of these answers

Which type of economist views economic systems as subsystems of the biosphere that depend heavily on irreplaceable natural resources?

• neoclassical

• ecological

• environmental

• all of these answers

• none of these answers

The ecological economist believes that conventional economic growth will eventually

• Pull us out of our dependence on Middle Eastern oil.

• Lead us into a socialist economy.

• Become unsustainable because it will deplete natural capital.

• Lead us into a sustainable economy.

• Collapse when oil runs out.

The view that natural resources are important but not indispensable is held by

• environmental economists

• ecological economists

• Eastern European economists

• neoclassical economists

• classical economists

Goods and services are produced by

• natural capital

• human capital

• manufactured capital

• manufactured and human capital

• natural, human, and manufactured capital

The category of economist that has taken the middle ground in the debate about economic growth, and believes in fine-tuning economic systems and tools, is the

• ecological economist

• environmental economist

• neoclassical economist

• neoconservative economist

• high-throughput economist

Which of the following is not an external cost of driving a domestic car?

• air pollution and litter

• cost of manufacture

• highway accidents

• health costs

• hazardous wastes produced by car exhaust

Excluding the external costs from the prices of goods and services

• hides these costs from the consumer

• hinders the development of green goods and services

• promotes pollution and resource waste

• all of these answers

• both hide these costs from the consumer and promote pollution and resource waste is correct.