Exam 1 and 2 multiple choice

Club good

A park for children inside a residential complex (that excludes non-residents) is a: A) private good B) public good C) common pool resource D) club good

Development that enables us to meet current needs without compromising the ability of future generations to meet their own needs

According to the Brundtland Commission report, sustainable development implies: A) zero discount rate B) development that enables us to meet current needs without compromising the ability of future generations to meet their own needs C) maximizing the minimum utility across all generations D) none of the above

False

Aggregate demand for a public good is the horizontal summation of individual demands A) true B) false

all of the above

Fish in an unregulated ocean are an example of: A) non-excludable good B) rival good C) common pool resource D) all of the above

Institutional

Recall the Homestead Act from last class where anyone who moved West was promised 160 acres of land. This led to many new settlers in the western US. What sort of driver is this? A) Biophysical B) institutional C) demographic D) cultural

Cultural

Suppose in a country it is tradition that adult children live at home until they marry and begin families. This results in many larger homes being built on bigger plots of land with very little apartment development. What sort of driver is this? A) cultural B) biophysical C) institutional D) demographic

Biophysical

Suppose that because of a nearby lake a plot of land is turned into a golf course. What sort of driver is this? A) biophysical B) institutional C) cultural D) demographic

Carrying capacity

The maximum fish population that can be supported in an ecosystem is called A) maximum sustainable yield B) carrying capacity C) critical viable population D) none of the above

false

Unregulated markets tend to over produce goods that cause a positive externality and under produces goods that cause a negative externality A) true B) false

Economic

What area of sustainability is cost savings?

Economic

What area of sustainability is economic growth?

Social

What area of sustainability is education?

Environmental-economic

What area of sustainability is energy efficiency?

Social-environmental

What area of sustainability is environmental justice?

Social

What area of sustainability is equal opportunity?

Economic-social

What area of sustainability is fair trade?

Environmental

What area of sustainability is pollution prevention?

Economic-social

What area of sustainability is worker's rights?

True

When a per-unit tax is imposed on emissions, a firm will choose to reduce its emissions (abate) up to the point where its marginal abatement costs (MAC) equals the emissions fee (or tax rate) A) true B) false

Are more worried about pollution

Which is not a reason households have flatter bid-rent curves than firms? A) less dependent on access to information B) are more willing to commute C) have preferences for larger lots D) are more worried about pollution

Maximum sustainable yield (MSY)

Which of the following factors does NOT affect the optimal maximum sustainable economic yield? A) marginal cost of fishing effort B) fish stock in the ocean at any time C) discount rate D) maximum sustainable yield (MSY)

The presence of large tracts of land suitable for high intensity farming

Which of the following is not a driver of land use change in Asia? A) increasing populations B) changes in public infrastructure (dams) C) the presence of large tracts of land suitable for high intensity farming D) urbanization

All of the above

Which of the following shifts household bid curves? A) gas price changes B) congestion C) construction of new highways D) all of the above

Total benefits are equally distributed across all time periods

Which of the following statements is NOT TRUE about dynamic efficiency? A) the sum of present value net benefits over the planning period are maximized B) the marginal present value net benefits in each time period are equal C) total benefits are equally distributed across all time periods D) dynamic efficiency is the same as inter temporal efficiency

Total benefits = total costs

Which of the following statements is NOT true about an efficient allocation? A) MB = MC B) it is a Pareto optimal allocation C) total benefits = total costs D) maximizes total surplus (net benefits)

Contingent valuation method

Which valuation method would you use to measure the economic value of preserving biodiversity in the deep ocean? A) travel cost method B) hedonic wage method C) contingent valuation method D) referenda

decrease

Will a higher discount rate increase or decrease the Present Value of a future earning? A) increase B) decrease

false

von Thunen was primarily interested in different quality of land A) true B) false