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Chapter 20 Practice



Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 1. 

The process of using resources to meet the needs of both current and future generations is referred to as:
a.
NAFTA
b.
sustainability
c.
preservation
d.
remediation
e.
environmental conscience
 

 2. 

The essentials of human survival can only be satisfied with the adequate provision of:
a.
environmental gratification
b.
aesthetic value
c.
intrinsic satisfaction
d.
ecosystem services
e.
monocultures
 

 3. 

The overall state of being happy, healthy, and prosperous is known as:
a.
well-being
b.
minimalisim
c.
socialism
d.
environmental stewardship
e.
planetary world view
 

 4. 

Which of the following is the study of how humans allocate scarce resources?
a.
psychology
b.
biochemistry
c.
economics
d.
environmental science
e.
geology
 

 5. 

The intersection point on a supply and demand curve indicates:
a.
the real cost
b.
the market equilibrium point for some item
c.
the reduction point
d.
an externality
e.
transaction costs
 

 6. 

Which of the following agreements was designed to increase economic development, but may have partially sacrificed social well-being and environmental health?
a.
Montreal Protocol
b.
North American Free Trade Agreement
c.
Convention on the International Trade of Endangered Species
d.
Copenhagen climate conference
e.
Kyoto Protocol
 

 7. 

Whenever humans engage in trade, it is known as:
a.
well-being
b.
real costs
c.
supply and demand
d.
sustainable development
e.
a market
 

 8. 

Through what mechanism do producers and consumers communicate the value of an item?
a.
popularity
b.
functionality
c.
price
d.
manufacturing equilibrium
e.
externalization
 

 9. 

Which of the following describes the Kuznets curve?
a.
As GDP rises, environmental degradation decreases linearly.
b.
As GDP rises, environmental degradation increases continuously.
c.
As GDP rises, environmental degradation decreases, then subsequently increases.
d.
As GDP rises, environmental degradation decreases, followed by population decrease.
e.
As GDP rises, environmental degradation increases, followed by a subsequent decrease.
 

 10. 

Which type of economic asset includes human knowledge and abilities?
a.
natural capital
b.
human capital
c.
manufactured capital
d.
environmental economics
e.
ecological economics
 

 11. 

Which type of economic asset includes all goods and services that humans produce?
a.
manufactured capital
b.
natural capital
c.
ecological economics
d.
environmental economics
e.
human capital
 

 12. 

The cost of a good or service that is not included in the economic price is considered an:
a.
supply anomaly
b.
externality
c.
demand equilibrium
d.
price gouging
e.
transaction cost
 

 13. 

On a supply and demand graph, the point at which the amount of a good supplied is the same as the amount of demand for that good is called:
a.
the price point
b.
a shortage point
c.
the equilibrium point
d.
the surplus point
e.
an externality
 
 
Figure 20-1
nar001-1.jpg
 

 14. 

Use Figure 20-1. In the figure, the original supply curve for a good is S, and the supply curve after the inclusion of an externality is S1. What happens to the price and quantity of a good when an externality is taken into account?
a.
The price increases, and the quantity decreases.
b.
The price decreases, and the quantity increases.
c.
The price and the quantity both increase.
d.
The price and the quantity both increase.
e.
The price and the quantity remain the same.
 

 15. 

If supply is down in the face of increasing demand, we would expect to witness:
a.
boycotts
b.
a product shortage
c.
a product surplus
d.
embargo pressure
e.
decreased interest rates
 

 16. 

Which of the following examples would be considered an external cost associated with the purchase of electricity from a coal-fired power plant?
a.
the cost of constructing the plant
b.
the cost of labor
c.
the medical expenses incurred by exposure to the plant’s pollution
d.
the cost of advertising the facility
e.
the cost of the coal being burned in the plant
 

 17. 

The measure of all the goods and services produced within the borders of a nation in a year is defined as the:
a.
gross domestic product
b.
genuine progress indicator
c.
market equilibrium
d.
transaction cost
e.
externality
 

 18. 

If externalities were included in the cost of a product or service, the following would be most likely to occur.
I. decrease in product demand
II. decrease in the price of the product
III. increase in product supply
a.
I only
b.
I and II
c.
II and III
d.
I and III
e.
I, II, and III
 

 19. 

Types of spending that increase the gross domestic product include all of the following EXCEPT:
a.
consumer spending
b.
exports
c.
government spending
d.
imports
e.
national investments
 

 20. 

As a general rule, nations with a higher GDP can expect to experience:
a.
lower tax rates
b.
higher well-being
c.
lower per capita wealth
d.
lower per capita pollution
e.
decrease in infrastructure
 

 21. 

What is one way that GDP can fail to accurately measure the overall well-being of a country?
a.
In unhealthy societies, high health care costs can drive up GDP.
b.
GDP fails to include microlending activity.
c.
GDP does not take international trade into account.
d.
GDP does not include personal or business investments, only direct spending on goods.
e.
Many countries don’t attempt to determine their GDP.
 

 22. 

In most cases, which of the following are true of a country whose GDP is increasing?
I. per capita wealth increases
II. population growth rate decreases
III. per capita solid waste generation decreases
a.
I only
b.
I and II
c.
II and III
d.
I and III
e.
II only
 

 23. 

A scale designed to measure the overall wealth of a nation by including the production as well as health of the population is known as:
a.
gross domestic product
b.
gross national product
c.
genuine progress indicator
d.
human satisfaction scale
e.
national progress initiative
 

 24. 

Most economic trends coupled with environmental degradation indicate that as GDP increases the nation will experience a temporary increase in:
a.
per capita pollution
b.
welfare
c.
crime
d.
population growth
e.
school dropout rate
 
 
Figure 20-2

nar002-1.jpg
 

 25. 

Use Figure 20-2. What model is shown in the figure?
a.
the Genuine Progress Index
b.
the Gross Domestic Product
c.
the Kuznets curve
d.
the Human development index
e.
the Microcredit cycle
 

 26. 

Use Figure 20-2. In a society that has passed the turning point shown in the figure, one would expect to see an increase in all of the following EXCEPT:
a.
well-being
b.
life span
c.
education level
d.
rate of population growth
e.
health care access
 

 27. 

A developing nation has cell phones introduced by wealthier nations. We would say this nation has participated in a:
a.
technology transfer
b.
demographic transition
c.
Kuznets shift
d.
wealth exchange
e.
societal progress pact
 

 28. 

A developing nation gains access to cell phone technology prior to having the infrastructure or access to basic land line technology.  This is an example of:
a.
NAFTA
b.
violation of intellectual property
c.
leapfrogging
d.
demographic transition
e.
technological over wash
 

 29. 

In a developing nation that lacks a nation-wide electrical grid, which of the following energy sources is most likely to be an example of leapfrogging?
a.
natural gas
b.
coal technology
c.
biomass
d.
solar
e.
nuclear
 

 30. 

The process of microlending is designed to promote which of the following:

I. charity within developing nations
II. small business development
III. sustainable economic and environmental practices
a.
I only
b.
I and III
c.
II and III
d.
II only
e.
I, II, and III
 

 31. 

Social and environmental impacts resulting from the process of microlending by institutions such as the Grameen bank in Bangladesh can be seen in:
a.
promoting smaller family size
b.
fostering infrastructure for developing energy
c.
reduction of soil erosion
d.
decrease in women’s rights to plan a family
e.
purchasing of solar panels for local communities
 

 32. 

All of the following are considered examples of natural capital EXCEPT:
a.
copper ore
b.
potable water
c.
wind
d.
plastic bottles
e.
soil
 

 33. 

In moving from our current economic system to a more sustainable system, which of the following inputs is likely to increase?
a.
waster
b.
ecosystem services
c.
consumption
d.
energy
e.
resource extraction
 

 34. 

When the economic system does not properly account for all costs, including externalities, it is called:
a.
market volatility
b.
price gouging
c.
market failure
d.
supply and demand
e.
microlending
 

 35. 

Relating the goals and needs of human society with the preservation and sustainable usage of resources that provide the means to meet those goals is the study of:
a.
conservation biology
b.
dendrology
c.
environmental stewardship
d.
anthropology
e.
ecological economics
 

 36. 

Attempting to assign monetary benefits of items that typically may only have intrinsic interest is a component of ecologic economics called:
a.
prioritization
b.
valuation
c.
leapfrogging
d.
monetary assumption
e.
intrinsic banking
 

 37. 

An example of incorporating an externality into the cost of a service is represented by:
a.
sales tax
b.
sulfur dioxide cap and trade allowances
c.
line usage charge on utilities
d.
sticker price of an automobile
e.
crude oil price fluctuation
 

 38. 

Which of the following would be a functional component of an economy founded on sustainability?
a.
recycling of waste for future use
b.
continued exploration of new oil reserves
c.
clear cut forestry for timber harvest
d.
resource extraction in excess of demand
e.
landfilling heavy metals
 

 39. 

Which of the following world views focuses on the intrinsic value of human life?
a.
anthropocentric world view
b.
biocentric world view
c.
ecocentric world view
d.
xenocentric world view
e.
zoocentric world view
 

 40. 

A timber company harvests trees by using a process of selective cutting.  They subsequently replant areas disturbed by logging roads to minimize soil erosion.  These actions are an example of:
a.
stewardship
b.
anthropocentric world view
c.
remediation
d.
planetary management
e.
ecosystem services
 

 41. 

The lack of carbon cap and trade legislation in the United States is a practice in ignoring the concepts put forth by:
a.
the planetary management worldview
b.
the precautionary principle
c.
leapfrogging
d.
technology transfer
e.
the anthropocentric worldview
 

 42. 

An example of the precautionary principle in action occurred with the global collaborative effort that resulted in:
a.
the Endangered Species Act
b.
Clean Air Act
c.
the Marine Mammal Protection Act
d.
the Montreal Protocol
e.
the creation of the United Nations
 

 43. 

The curbing of CFCs enacted by the Montreal Protocol is unlikely to be duplicated in the effort to reduce of carbon emissions primarily because:
a.
there is an inexhaustible amount of fossil fuels
b.
carbon is not an ozone depleting chemical
c.
there is not a viable replacement for fossil fuels currently
d.
carbon is not a human health threat
e.
CFCs are not used in any aspect of transportation
 

 44. 

All of the following are mandates associated with the World Bank EXCEPT:
a.
education of government officials
b.
establishment of viable infrastructure
c.
converting financial systems from micro-credit to more substantial financial organizations
d.
ensuring the continued growth in population within developing nations
e.
reduction of corruption within governmental systems
 

 45. 

An outbreak of malaria has occurred in a latitude that is farther north of the equator than is normally observed.  This is likely the result of increased global temperatures.  The agency that would be called upon to investigate this outbreak would be:
a.
the World Bank
b.
the United Nations Development Program
c.
the World Health Organization
d.
the Environmental Protection Agency
e.
the Federal Emergency Response Agency
 

 46. 

Who is the author of Silent Spring, which was partially responsible for the creation of Earth Day?
a.
Al Gore
b.
Rachel Carson
c.
John Muir
d.
Aldo Leoplod
e.
E. O. Wilson
 

 47. 

A developer is interested in placing a strip mall in a rural area that has a significant acreage of wetlands on it.  The federal agency that would be responsible for ensuring that all appropriate regulations are met would be:
a.
Natural Resource Conservation Service
b.
Environmental Protection Agency
c.
Department of Energy
d.
Occupational Safety and Health Administration
e.
Department of Environmental Quality
 

 48. 

The human development index accounts for which of the following:
I. Life expectancy of a nation
II. Adult literacy rate
III. Per capita GDP
a.
I only
b.
II only
c.
II and III
d.
I and II
e.
I, II, and III
 

 49. 

Which of the following countries has a relatively low HDI?
a.
Germany
b.
Nigeria
c.
Norway
d.
Canada
e.
Australia
 

 50. 

An index that extends the HDI by considering standard of living through access to clean water and health services would be:
a.
World Health Organization
b.
Human poverty index
c.
United Nations Development Programme
d.
The Red Cross
e.
Greenpeace
 

 51. 

An example of environmental injustice is best represented by which of the following?
a.
U.S. auto makers are mandated to increase emission standards.
b.
Public schools are required to annually test for certain indoor air quality standards.
c.
The EPA requires localities to meet certain water quality standards.
d.
Exotic species are targeted for elimination in affected areas.
e.
A disproportionate number of minorities live near landfills.
 

 52. 

Which piece of legislation focuses on preventing exposure to physical and chemical harms in the workplace?
a.
Clean Water Act
b.
Occupational Safety and Health Act
c.
Comprehensive Environmental Response, Compensation, and Liability Act
d.
National Environmental Policy Act
e.
Clean Air Act
 

 53. 

The price of a barrel of oil will likely rise in the United States as a response to impending:
a.
mild winter weather
b.
above average rainfall
c.
holiday travel
d.
reduction in asphalt production
e.
increase in fuel economy standards by the government
 
 
Figure 20-3

nar003-1.jpg
 

 54. 

Use Figure 20-3. In 2000, GPI was about what percent of GDP?
a.
15%
b.
43%
c.
65%
d.
96%
e.
233%
 

 55. 

Use Figure 20-3. Based on the graph, the rate of change in per capita GPI between 1960 and 1980 would be closest to:
a.
$5000/year
b.
$2500/year
c.
$500/year
d.
$250/year
e.
$0/yr
 

 56. 

Use Figure 20-3. Based on the graph, the rate of change in per capita GPI between 1980 and 2000 would be closest to:
a.
$5000/year
b.
$2500/year
c.
$500/year
d.
$250/year
e.
$0/yr
 



 
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