Ecological Economics
1. According to classical economics, supply is _______ to demand (p. 161)
A. inversely related.
B. positively correlated.
C. unrelated.
D. marginally related.
E. none of the above.
2. Both classical economists, like Adam Smith, and neoclassical economists, like Karl Marx, believe that (pp. 161-162)
A. growth is necessary.
B. natural resources are merely a factor to facilitate growth and not something of value in themselves.
C. growth is unnecessary.
D. natural resources have intrinsic value.
E. A and B.
F. C and D.
3. One important distinction between ecological economics and those of neoclassical economics is it's emphasis on (p. 162)
A. the irreplaceable nature of some natural systems.
B. the inverse relationship between supply and demand.
C. the direct correlation between supply and demand.
D. the need to stop development.
E. none of the above.
4. From the perspective of an economist, intangible resources include (p. 163)
A. open space.
B. sunlight.
C. fossil fuels.
D. minerals.
E. none of the above.
5. A key element in successful communal resource management is (p. 165)
A. a desire to pass on access of the resource to future generations.
B. that the community group size is known and enforced.
C. that the resource has clearly defined boundaries.
D. the resource is relatively scarce so the community is forced to be interdependent.
E. all of the above.
6. As an economy develops the point of market equilibrium (the point where supply and demand are in balance) (p. 166)
A. shifts toward higher quantities of goods at lower prices.
B. shifts toward lower quantities of goods at higher prices.
C. remains almost exactly the same.
D. reveals the ways that increasing technological efficiency tends to raise prices.
E. none of the above.
7. Long run world prices for nonferrous metals (aluminum, copper, tin, and zinc) (p. 167)
A. decreased early in the century and have steadily increased since then.
B. increased early in the century and have steadily decreased since then.
C. decreased early in the century and, with some fluctuations, have remained about the same since then.
D. have become increasingly more expensive this century as they have been used up.
E. none of the above.
8. Even if the price of resources remains stable through periods of economic development, some ecological economists argue that prices (p. 168)
A. do not reflect the political and social costs of resource allocation decisions.
B. do not reflect the real value of resources held in common, such as clean water and air, and biological diversity.
C. often reflect the political and social costs of resource allocation decisions.
D. often reflect the real value of resources held in common, such as clean water and air, and biological diversity.
E. A and B.
F. C and D.
9. Critics argue that Gross National Product (GNP) is not the best way to measure economic output because (p. 169)
A. GNPs are often lower in developing countries than in developed countries.
B. GNPs are difficult to figure.
C. the GNP do not factor in environmental degradation or natural resources that are being used up.
D. the GNP often contributes to changes in population growth.
E. none of the above.
10. Ecological economists argue that to get a full accounting of natural resource use and ecological services we should consider (p. 170)
A. option value.
B. existence value.
C. cultural value.
D. aesthetic value.
E. all of the above.
F. none of the above.
11. A traditional cost/benefit analysis of a project is determined by using all of the following EXCEPT (p. 171)
A. a plan for a proposed action.
B. an plan for an alternative action.
C. consequences to human and environmental welfare.
D. monetary benefits of the proposed action.
E. an accounting of the monetary costs of the proposed project.
12. To an economist, a discount rate measures (p. 172)
A. to what extent having something today is worth in future costs.
B. that we are interested in getting bargains.
C. to what extent humans require cheap natural resources to increase carrying capacity.
D. none of the above.
E. all of the above.
13. An example of an external cost of steel production is (p. 173)
A. air pollution.
B. the cost of steel house siding.
C. the cost of iron ore.
D. the cost of energy to produce the steel.
E. all of the above.
14. All of the following are goals of global sustainable development EXCEPT (p. 178)
A. stabilizing world population growth.
B. broader sharing of resources.
C. reliance on using nature's "income" without depleting its "capital".
D. increasing use of natural resources.
E. transition away from world views that separate humans from nature.
15. The World Bank is an important player in how economic development occurs because (p. 175)
A. it uses so many resources it can set the price.
B. it loans money for development projects.
C. it often receives its orders from developing nations.
D. it is intensely interested in fostering ecologically sustainable development.
E. all of the above.