ECON 309: The economics of a sustainable society

On-Line Quiz 4, Part B

Covering Chapters 11 - 15 of Steve Hackett's Textbook:
Environmental and Natural Resources Economics: Theory, Policy, and the Sustainable Society

M.E. Sharpe, Publisher


On-Line Quiz 4, Part B (Microsoft Internet Explorer Version)

Note: There are 16 multiple choice and true/false questions below. Answer each question by clicking on the appropriate button. When you have answered all of the questions, click the "Check Answers" button at the bottom of the page. Your score will be calculated, and you will see a list of the questions that you answered correctly, and those that you answered incorrectly. You may retake the quiz as often as you wish--be sure to click the "Reset" button to clear all your answers before you retake the quiz. When you are ready to take Part B of Quiz 4, click the button at the bottom of this page.

16. Which of the following is a central element of weak-form sustainability theory?

    Human-made capital can effectively substitute for natural capital and the services provided by ecological systems.
    An emphasis on the ecological imperatives of carrying capacity, biodiversity, and biotic resilience, relative to conventional economic income and GDP.
    Both of the above are correct.
    Neither of the first two are correct.

17. Which of the following is NOT an argument supporting strong-form sustainability over weak-form sustainability?

    The irreversibility of the environmental impacts of so many human activities.
    The discontinuities and threshold effects associated with cumulative human activities.
    The ease with which technology can replace depleted ecosystems and natural resources.
    The uncertainty associated with the consequences of drawing down natural capital.

18. Which of the following factors is NOT SUBTRACTED from consumption to arrive at the Genuine Progress Indicator (GPI)?

    The cost of crime.
    The value of services provided by government-owned capital.
    The loss of valuable leisure time.
    The cost of ozone depletion.

19. Which of the following statements is NOT consistent with the strong correlation between path dependency and our reliance on traditional energy technologies?

    Sunk infrastructure investment represents a large financial commitment to the existing way of doing things.
    Private R&D activities are directed toward accommodating the existing system.
    New technologies are often-times produced in such small quantities that economies of scale in production are not reached, leading to high average costs of production.
    None of above; they are all consistent with path dependency effects.

20. True or false: Current high rates of energy consumption in the United States are based on a policy of low fossil fuel energy prices.

    True.
    False.

21. Approximately what percentage of people in Africa rely on wood as a fuel source for cooking?

    10.
    30.
    60.
    90.

22. Which of the following provides the best description of Extended Producer Responsibility programs?

    These programs make it easier for citizens to sue companies whose pollution emissions are out of compliance with regulations.
    These programs allow citizens in developing countries to sue multinational firms for environmentally damaging production practices using the regulatory standards of the multinational firms home country.
    These programs extend producer responsibility to the entire "lifecycle" of the products that they make, from manufacturing to reuse, recycling, or disposal.
    These programs extend producer responsibility to include the funding of government pollution monitoring programs.

23. In product take-back programs, who has the burden of dealing with reusing or recycling waste that results from the end of a products useful life?

    The original producer of the product.
    The local municipal government where the consumer of the product lives.
    The federal government in the country where the consumer of the product lives.
    The taxpayers in the poorest of developing countries where many goods are manufactured.

24. True or false: Generations of Swiss and Japanese villagers, after contemplating the costs and benefits of both common property and private property, have chosen private rather than common property as the property rights institution for managing their common-pool resourcessuch as open alps, community forests, common pastures, and jointly used irrigation systems.

    True.
    False.

25. In her research on self-governed coastal fishing commons, Schlager found that most of the reasonably successful governance structures were able to resolve which of the following problem or problems?

    Appropriation externalities.
    Technological externalities--gear entanglement and other forms of physical interference among fishing vessels working adjacent to one another.
    The difficulty in coordinating the assignment of fishing vessels to particular locations, some of which are more productive than others.
    Technological externalities and the assignment problem, but NOT appropriation externalities.
    All of the above.

26. Which of the following is NOT one of Ostrom's design principles associated with sustainable local self-governance of common-pool resources (CPRs)?

    Clearly defined boundaries.
    Conflict resolution mechanisms.
    Central government recognition of the local peoples rights to self-governance.
    Protection of each individuals liberty to access and appropriate from the CPR in whatever manner the individual sees as appropriate.

27. In the following equation [Total Economic Impact = (Local Income Injection) x Multiplier], what is the multiplier equal to?

    1/(consumption+investment).
    1/(resource depletion rate).
    1/(leakage rate).
    1/(net imports).

28. True or false: The multiplier referred to above will increase with the percentage of local income spent on imported goods and services.

    True.
    False.

29. True or false: There is evidence that concentrations of certain pollutants at first rise and then eventually decline as per-capita real income rises (a type of "Kuznets-Curve effect between pollution concentrations and per-capita real GDP).

    True.
    False.

30. Potential problems with free international trade (from a sustainability perspective) and easy capital mobility include:

    Rich country/poor country trade can result in rich countries paying poor countries to accept toxic and other wastes, and poor countries hungry for cash will accept this waste. The problem here is with ethics.
    Rich country/poor country trade can worsen resource depletion when property rights to environmental and natural resources are poorly defined or enforced in the poor country. The problem here is that free trade worsens resource depletion.
    Free trade can result in more rapid displacement of indigenous people. This typically happens when a country's government and a big multinational partner to develop big development projects such as dams or strip mines that displace people. Easy capital mobility hastens this effect.
    All of the above.

31. True or false: Microlending programs are economic development strategies that empower women and the poor, and promote entrepreneurism.

    True.
    False.

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Copyright Steve Hackett.