Question 1

Which of the following is NOT a reason that we avoid changing our personal behaviors to preserve our environment?
A)We seek to "free ride" from others.
B)We know our individual actions will have only a small effect.
C)Our incentives to individually defect are greater than our incentives to cooperate.
D)We believe that the chances of being caught are small enough to risk not changing.
E)We do not wish to pay the costs of such a change.

Accepted Answer

The statement about being caught is more relevant to illegal activities rather than personal behavior change for environmental preservation.

Question 2

Which of the following statements about the ozone layer is FALSE?
A)The ozone layer blocks harmful ultraviolet radiation from reaching Earth's surface.
B)The ozone layer is essential to life on Earth.
C)The ozone layer is harmed by chlorofluorocarbons (CFCs)in the atmosphere.
D)The ozone layer continues to thin,with no improvement in sight.
E)The ozone layer has a "hole" in it over Antarctica.

Accepted Answer

This statement is false. The ozone layer has actually shown signs of improvement in recent years due to international efforts to reduce the usage of ozone-depleting substances like CFCs. However, there are still areas where the ozone layer is thinning, particularly over Antarctica where a "hole" has been observed.

Question 3

Which of the following is an example of a good whose consumption is rival?
A)Public highways.
B)Clean air.
C)National defense.
D)Internet access.
E)Fishing in a lake.

Accepted Answer

Fishing in a lake is an example of a good whose consumption is rival because if someone is fishing in the lake, it reduces the amount of fish available for others to catch.

Question 4

Limiting environmental control (heating and cooling)of personal houses in order to limit environmental consequences is an example of a:
A)collective action problem.
B)coordination game.
C)cooperation game.
D)strategic interaction.
E)principal-agent problem.

Accepted Answer

Limiting environmental control of personal houses, while individually beneficial, requires collective action to have a significant impact on reducing environmental consequences. This is because the actions of one individual, in isolation, cannot have a significant effect on the environment. This creates a collective action problem, which requires cooperation among individuals to achieve a common goal.

Question 5

The Lima Accord was an international agreement related to what issue?
A)Whaling.
B)Ozone depletion.
C)Climate change.
D)Oil dumping in open waters.
E)Overfishing.

Accepted Answer

The Lima Accord was an international agreement related to climate change. It was signed at the United Nations Climate Change Conference in Lima, Peru in 2014, and it aimed to establish a framework for reducing greenhouse gas emissions and limiting global warming to less than 2 degrees Celsius above pre-industrial levels.

Question 6

What is a common pool resource?
A)A good that is nonexcludable but rival in consumption.
B)A cost or benefit for stakeholders other than the actor undertaking an action.
C)An effect created by the interaction between two states.
D)A good that is nonexcludable and nonrival in consumption.
E)An international agency that monitors compliance with regulations.

Accepted Answer

A common pool resource is a good that is nonexcludable but rival in consumption, meaning that it is available for use by anyone but its use by one person reduces the amount available for others. Examples include fish stocks, forests, and oil reserves.

Question 7

Which of the following is NOT an example of a negative externality?
A)A multinational corporation produces waste products that contaminate local groundwater and make the regional water undrinkable.
B)The power generation of a local factory produces soot that covers nearby houses.
C)The production of toys by an international corporation produces some waste products that the company pays to have disposed of properly.
D)A newly built airport services hundreds of jets that are loud and disturb nearby residents.
E)A military conducts live-ammunition training exercises,and some of the material from the exercises ends up on other people's private property.

Accepted Answer

A negative externality is a cost that is imposed on a third party (not involved in the transaction) and is not accounted for in the market price. Option C indicates that the company is disposing of its waste products properly and paying for the cost, so it is not an example of a negative externality. Options A, B, D, and E indicate situations where an activity causes harm to third parties (contaminating water, creating pollution, noise disturbance, and damage to property), which are examples of negative externalities.

Question 8

All of the following are examples of an externality EXCEPT:
A)bees kept to make honey pollinate plants belonging to a nearby farmer.
B)smoke from a factory imposes cleanup costs on nearby residents.
C)a group purchases a farm on which to grow its own food.
D)a company dumps toxic waste into a river,forcing people downstream to drink polluted water.
E)a school club cleans up a public beach,creating a litter-free and safer swim area for all beachgoers.

Accepted Answer

Option C is not an example of an externality as it involves individuals producing a good for their own consumption and does not affect any third party. All other options involve some sort of impact on individuals or the environment outside of those directly involved in the activity.

Question 9

What is an externality?
A)A good that is nonexcludable but rival in consumption.
B)A cost or benefit for stakeholders other than the actor undertaking an action.
C)An effect created by the interaction between two states.
D)A good that is nonexcludable and nonrival in consumption.
E)An international agency that monitors compliance with regulations.

Accepted Answer

An externality is a cost or benefit for stakeholders other than the actor undertaking an action. It is an effect created by the interaction between two parties, where one party affects another without going through a market transaction. It can be positive or negative and can lead to market failure. Examples of externalities are pollution and a person's decision to get vaccinated, which affects not only that individual but also those around them.

Question 10

How did the European Emissions Trading Scheme privatize a public good?
A)The system sold off government-owned firms to more efficient private owners.
B)European governments became less involved in the details of pollution reduction,allowing private citizens and firms to determine the appropriate levels of pollution.
C)European governments gave away environmentally friendly technology that had been developed using public funds.
D)The system regulated pollution emissions that occurred in each individual country.
E)The system divided up and distributed a pollution allowance to individual firms that were contaminating clean air.

Accepted Answer

The European Emissions Trading Scheme privatized a public good by dividing up and distributing a pollution allowance to individual firms that were contaminating clean air. This allowed the private firms to trade pollution permits among themselves, essentially creating a market for pollution. This led to the privatization of what was previously a public good, clean air.

Question 11

Why is preservation of the environment sometimes like a Prisoner's Dilemma?
A)The world's population is "imprisoned" and cannot escape the effects of environmental degradation and global warming.
B)Transnational advocacy networks can free the world's population from the effects of environmental degradation and global warming.
C)Individuals have no interest in cooperating and would rather "defect" by continuing to pollute,if it suits their needs.
D)Individuals have a shared interest in cooperating but would rather "defect" since their own efforts would have little effect on overall pollution levels.
E)Individuals will always "defect" when asked to cooperate on issues like ozone depletion and global warming.

Accepted Answer

The preservation of the environment can be like a Prisoner's Dilemma because individuals have a shared interest in cooperating to reduce pollution and environmental degradation. However, each individual may choose to "defect" and continue to pollute if they believe their own efforts won't make a significant impact on overall pollution levels. This creates a situation where cooperation would be the best outcome for everyone involved, but individual incentives may encourage non-cooperation.

Question 12

The case of ozone depletion indicates that:
A)progress is sometimes possible,despite the presence of special interests.
B)special interests are rarely successful in blocking environmental regulations.
C)the presence of special interests always win out over the collective interest for a cleaner environment.
D)special interests can successfully mobilize citizens to take on their governments.
E)special interests can subvert Superfund cleanup rules.

Accepted Answer

The case of ozone depletion shows that progress is possible despite the presence of special interests, as evidenced by the successful international agreement to phase out ozone-depleting substances. While there may have been some opposition from special interests, the collective interest in protecting the ozone layer prevailed.

Question 13

What makes the Lima Accord different from previous agreements on that topic?
A)NGO's were not allowed to participate in the meeting.
B)Fewer states were present at the signing of the Accord than at previous conferences.
C)The United Nations supported the agreement without reservation.
D)It has an enforcement mechanism that is more powerful than previous agreements.
E)It is the first time that all nations,rich and poor,agreed to take action to combat the issue.

Accepted Answer

The Lima Accord is the first agreement in which all nations, both rich and poor, agreed to take action to combat climate change. This is a significant difference from previous agreements, which often excluded developing nations or only required action from certain countries.

Question 14

Given the relative lack of international environmental cooperation,together with the existence of hundreds of transnational environmental advocacy networks and the success of Al Gore's documentary,An Inconvenient Truth,one could best conclude that:
A)environmentalists prefer talk over action.
B)educating the public is not enough to produce effective solutions.
C)environmental cooperation is hindered by too much information.
D)support for the environment is not as broad-based as believed.
E)forging international agreements is best left to the diplomats.

Accepted Answer

The existence of numerous advocacy networks and the success of Al Gore's documentary indicate that educating the public on environmental issues is not sufficient to produce effective solutions. The lack of international environmental cooperation suggests that action needs to be taken rather than just talking about the issues.

Question 15

Which of the following is most clearly an example of a public good?
A)The Grand Banks fishery off the East Coast of North America.
B)The availability to use the Danube River for commercial shipping.
C)The ozone layer protecting humans from ultraviolet radiation.
D)The level of pollution from a pulp mill in Uruguay that affects Argentina.
E)Bees from one farmer's property pollinating another farmer's plants.

Accepted Answer

The ozone layer protecting humans from ultraviolet radiation is a classic example of a public good because it is non-excludable (people cannot be denied access to it) and non-rivalrous (one person's use of it does not diminish its availability to others). The other options either benefit specific individuals or can be restricted in some way.

Question 16

Which of the following products is nonexcludable?
A)National Security.
B)Food.
C)Clothing.
D)Access to a store.
E)The ability to attend a class.

Accepted Answer

National security is nonexcludable because it is provided to all citizens and cannot be withheld from individuals.

Question 17

Which of the following greenhouse gases is primarily responsible for our current concerns about global warming?
A)Methane.
B)Water vapor.
C)Carbon dioxide.
D)Nitrous oxide.
E)Ozone.

Accepted Answer

Carbon dioxide is primarily responsible for our current concerns about global warming because of its high concentration in the atmosphere and its ability to trap heat close to the Earth's surface. While other greenhouse gases, such as methane and nitrous oxide, are also significant contributors to global warming, carbon dioxide is the most abundant and longest-lasting greenhouse gas emitted by human activities. Water vapor is also a greenhouse gas, but it is not generally considered as contributing to climate change because its concentration in the atmosphere is largely controlled by temperature and not by human activities. Ozone is also a greenhouse gas, but it is mostly concentrated in the stratosphere and not a significant contributor to global warming.

Question 18

How did Europe's Emissions Trading Scheme work?
A)European countries banned trade with firms that polluted in excess of their allowances.
B)European countries traded new antipollution technology to firms in developing countries that committed to reducing carbon emissions.
C)Firms were given allowances for greenhouse gas emissions that they could sell or buy depending on their own efficiency.
D)Firms in Europe established their own regulations to limit carbon emissions.
E)European governments gave tax credits to firms that reduced their carbon emissions.

Accepted Answer

The European Union Emissions Trading Scheme (EU ETS) was a cap-and-trade system that allocated allowances for greenhouse gas (GHG) emissions to participating firms. Each allowance corresponded to one tonne of CO2-equivalent emissions. Firms could sell excess allowances or buy more if they needed them to comply with their yearly limits. The goal was to put a price on carbon emissions and incentivize firms to reduce their environmental footprint. The scheme applied to power plants, manufacturing facilities, and other large emitters across the EU.

Question 19

What is a public good?
A)A good that is nonexcludable but rival in consumption.
B)A cost or benefit for stakeholders other than the actor undertaking an action.
C)An effect created by the interaction between two states.
D)A good that is nonexcludable and nonrival in consumption.
E)An international agency that monitors compliance with regulations.

Accepted Answer

A public good is a good that is nonexcludable and nonrival in consumption, meaning it is difficult to prevent someone from enjoying the benefits of the good and consumption by one individual does not diminish the amount available for others. Examples include national defense and clean air.

Question 20

Which of the following is an example of free riding with regard to environmental issues?
A)China does not reduce carbon emissions but expects developed countries to reduce theirs.
B)Japan pushes to remove the ban on commercial whaling.
C)Togo does not pay its dues to the International Whaling Commission (IWC).
D)Greenpeace uses its own ships to monitor Norwegian whaling vessels.
E)Europeans take boat trips on the Danube River without having to pay tolls.

Accepted Answer

China is free riding on the efforts of developed countries to reduce carbon emissions without making their own effort to reduce carbon emissions.

Answer: B
 Japan is free riding on the ban on commercial whaling that has been put in place by the International Whaling Commission (IWC).

Answer: C
 Togo is free riding on the efforts of other countries to fund the International Whaling Commission (IWC), which they use to monitor and regulate whaling.

Answer: E
 Europeans who take boat trips on the Danube River without paying tolls are free riding on the maintenance and upkeep of the river and its infrastructure, which are paid for by others.

Quiz 14: The Global Environment

Which of the following is NOT a reason that we avoid changing our personal behaviors to preserve our environment?

Which of the following statements about the ozone layer is FALSE?

Which of the following is an example of a good whose consumption is rival?

Limiting environmental control (heating and cooling) of personal houses in order to limit environmental consequences is an example of a:

The Lima Accord was an international agreement related to what issue?

What is a common pool resource?

Which of the following is NOT an example of a negative externality?

All of the following are examples of an externality EXCEPT:

What is an externality?

How did the European Emissions Trading Scheme privatize a public good?

Why is preservation of the environment sometimes like a Prisoner's Dilemma?

The case of ozone depletion indicates that:

What makes the Lima Accord different from previous agreements on that topic?

Given the relative lack of international environmental cooperation,together with the existence of hundreds of transnational environmental advocacy networks and the success of Al Gore's documentary,An Inconvenient Truth,one could best conclude that:

Which of the following is most clearly an example of a public good?

Which of the following products is nonexcludable?

Which of the following greenhouse gases is primarily responsible for our current concerns about global warming?

How did Europe's Emissions Trading Scheme work?

What is a public good?

Which of the following is an example of free riding with regard to environmental issues?