Chapter 25 Flashcards
(79 cards)
0
Q
True of false? Normative economics concerns it’ll with supplying the needs of people while protecting he environment.
A
False
1
Q
True or false? Economics is the study of the production, distraction and consumption of goods and services
A
True
2
Q
True or false? Two types of economic systems exist : command and market economics.
A
True
3
Q
True or false? Governments dictate production and distribution goals in command economies.
A
True
4
Q
True or false? The principle they most things that people want are limited is the law of scarcity.
A
True
5
Q
True or false? The predictable interplay of price, supply and demand constitutes the law of supply and demand?
A
True
6
Q
True or false? Supply refers to the amount of goods people want.
A
False
7
Q
True or false? An economy where supply and demand is totally controlled by market forces is a free market system
A
True
8
Q
True or false? The gross national product is the market value of the nations output.
A
True
9
Q
True or false? A cost to society and the environment not paid directly are called direct costs.
A
False
10
Q
True or false? Repercussion costs are incurred by the industry due the the image problems arising from an oil spill or other environmental damage.
A
True
11
Q
True or false? The measure of one’s willingness to postpone some current income for greater returns in the future is called opportunity cost.
A
False
12
Q
True or false? Opportunity cost is the cost of lost opportunities
A
True
13
Q
True or false? Levies on environmentally undesirable products or activities are called green taxes.
A
True
14
Q
True or false? An economic system that seeks only to meet human needs and ignores environmental concerns is called a sustainable economy.
A
False
15
Q
True or false? Appropriate technologies are inefficient, rely on foreign resources and produce considerable amounts of pollution
A
Fals
16
Q
True or false? The gas-guzzler tax is a tax on cars that get poor gas mileage.
A
True
17
Q
True or false? Grants and tax incentives can be used by governments to encourage sustainable business practices and products.
A
True
18
Q
True or false? Marketable permits for emissions provide an economic incentive for companies to reduce pollution.
A
True
19
Q
True or false? Great local. And regional self-reliance may be essential to achieving a sustainable future
A
True
20
Q
Economic systems tend to (?) people and the environment
A
Exploit
21
Q
One characteristic of a sustainable economy is that it uses all (?) efficiently
A
Resources
22
Q
Sustainable economies promote (?) self-reliance
A
Regional
23
Q
(?) technologies rely on local resources, are efficient and produce little if any pollution.
A
Appropriate
24
(?) products are environmentally friendly goods and services
Green
25
(?) is the dollar value of goods per hour of paid employment
Productivity
26
A problem with the GNP is that if fails to account for the destruction of (?) assets
Natural
27
Economic growth is fueled by (?) growth and ever increasing per capita consumption.
Population
28
Soil, the (?) layer, and current climate are vital to earth assets.
Ozone
29
Economic systems often fail to take into account long-term supplies, a trend that results in an (?) of many natural resources
Underpricing
30
The (?) rate allows investors and economists to determine the present value of different profit-making options
Discount
31
(?) cost is the cost of lost opportunities.
Opportunity
32
A measure of ones willingness to postpone some current income for greater returns in the future is know as (?) preference
Time
33
The Exxon Valdez oil spill in Alaska happened in
1989
34
Indirect costs due to the Exxon Valdez oil spill were paid by state and (?) agencies
Federal
35
The law of (?) returns predicts that for each additional dollar invested there will be a smaller return
Diminishing
36
A cost to society and the environment that is hidden and not laid directly is known as an (?) externality.
Economic
37
Economics is the study of (?), distribution and consumption of goods and services
Production
38
The intersection of the supply and demand curves is known as the market price (?)
Equilibrium
39
(?) refers to the amount of a resource, product or service that is available.
Supply
40
```
The study and production, distribution and consumption of goods and services is called?
A) sociology
B) anthropology
C) economics
D) ecology
E) psychology
```
C) economics
41
```
Command economics are largely run by:
A) individuals
B) small companies
C) large corporations
D) trade organizations
E) governments
```
E) governments
42
```
A county with a company economy would be
A) United States
B) Great Britain
C) Germany
D) Cuba
E) Canada
```
D) Cuba
43
```
Economies which produce goods and services for which there is the highest demand called
A) demand economies
B) command economies
C) market economies
D) inflated
E) saturated
```
C) market economies
44
```
The law of scarcity states that
A) most things people want are limited.
B) prices is not a rationing mechanism
C) you cannot have what you want
D) scarce items will get scarcer
E) the harder to find something the lower the prices
```
A) most things people want are limited
45
```
Prices in a market economy are largely determined by the interaction of supply and (?)
A) cost of production
B) surpluses
C) time of purchase
D) demand
E) inventory
```
D) demand
46
```
The prices at which consumers are willing to buy a product and at which producers can afford to produce is the
A) point of no return
B) maximum sustainable yield
C) market price equilibrium
D) markup
E) discount rate
```
C) market price equilibrium
47
```
Per capita GNP = (?)/total population
A) real GNP
B) total productivity
C) GDP
d) real GDP
E) growth
```
A) real GNP
48
```
A measure of the economic output of the nation, including all goods and services is the
A) gross national product
B) economic product
C) gross income product
D) cost benefit analysis
E) cost of goods and services
```
A) gross national product
49
```
The costs of pollution control that companies incur are (?) and passed in to the consumer in the form of a price increase
A) externalized
B) internalized
C) deducted
D) avoided
E) standardized
```
B) internalized
50
The advantage of sustainable approaches to reducing pollution over end-of-pipe controls is that they can
A) reduce emissions at a far lower cost
B) take a longer time
C) are about equally effective as conventional methods
D) require large amounts of new technology
E) will require complete retooling of industry.
A) reduce emissions at a far lower cost
51
```
If the industry passes the cost of pollution control on to the consumer, this strategy is known as the
A) consumer pays option
B) taxpayer pays option
C) government pays option
D) market forces option
E) free market option
```
A) consumer pays option
52
```
Governments payments to coal mins who suffer from black lung disease as a result if exposure to coal dust is called
A) consumer pays option
B) taxpayer option
C) insurance option
D) no-fault option
E) socialism option
```
B) taxpayer pays option
53
```
Exxon paid expenses to clean up the oil spill in the weeks and months after the 1989 Exxon Valdez spill. These costs are called
A) direct costs
B) indirect costs
C) repercussion costs
D) overhead
E) operating expenses
```
A) direct costs
54
```
A cost to society and the environment not paid directly by manufacturer or consumer is an
A) tax
B) externality
C) rebate
D) penalty
E) surcharge
```
B) externality
55
```
Costs incurred by a state or federal agency as the result of an oil spill are called
A) direct costs
B) indirect costs
C) rescission costs
D) overhead
E) operating costs
```
B) indirect costs
56
```
Boycott of the Exxon company after the oil spill cost the company revenue. This cost is called the
A) direct costs
B) indirect costs
C) repercussion costs
D) overhead
E) operating costs
```
C) repercussion costs
57
```
A measure of willingness to postpone some of the current income for greater returns in the future is called the
A) time delay
B) time preference
C) repercussion cost
D) cost of waiting
E) future cost
```
B) time preference
58
```
An economic index that reflects ones time preference, opportunity costs, and allows investors to determine the economic value of different profit making options is the
A) discount rate
B) down payment
C) gross income
D) interest rate
E) instantaneous growth rate
```
A) discount rate
59
```
If a company incorporates all of the costs of producing a product or service, including environmental externalities thus is called
A) user fees
B) full cost pricing
C) discount pricing
D) retailing
E) price gouging
```
B) full cost pricing
60
```
Economic growth is fueled by
A) population growth
B) increasing per capita consumption
C) a notion of endless resources
D) the idea that growth is progress
E) all of the above
```
E) all of the above
61
The gross national product fails to take in consideration
A) resource depletion
B) accumulated wealth
C) the distribution of wealth
D) economic activity that reduces the quality of life
E) all of the above
E) all of the above
62
```
(?) of American children live in poverty
A) one-eighth
B) one fifth
C) one fourth
D) one fifth
E) one half
```
B) one fifth
63
```
Nearly (?) million Americans have no health insurance
A) 10
B) 20
C) 30
D) 40
E) 50
```
D) 40
64
```
Kenneth Boulding coined the term cowboy economy and suggested that it needs to be replaced by a (?) economy
A) Mother Earth
B) frontier
C) spaceship
D) green
E) natural
```
C) spaceship
65
```
Taxes on raw materials, paid by producers and ultimately passed on to consumers, such as the severance tax paid by coal companies is called a
A) green tax
B) surcharge
C) rebate
D) opportunity cost
E) extnality
```
A) green tax
66
```
Yale economists, Nordhaus and Tobin, have created a measure of the nations economic growth at subtract the disamentities of an economy (costs of pollution, medical care, etc) called the
A) index of sustainable economic welfare
B) net economic welfare
C) gross domestic product
D) Dow average
E) average growth indicator
```
A) index of sustainable economic welfare
67
The GNP continued to rise between 1980 and 1990 but the index of sustainable economic welfare (now called the GPI) declined. This decline is largely attributed to the
A) increase in personal spending
B) increase in pollution controls
C) rapid deterioration of the environment
D) new market opportunities and investments
E) illegal immigration
C) rapid deterioration of the environment
68
```
Gold mining in serval African countries provide little economic benefit to the miners and their local economies, whereas the middle men and others reap huge profits. Overpopulation and environmental degradation are fostered by the (?) of the miners
A) conditions
B) attitude
C) economic exploitation
D) work
E) union organization
```
C) economic exploitation
69
```
Which of the following responses is a characteristic of a sustainable economy
A) uses of resources efficiently
B) restores damaged ecosystems
C) promotes regional self-reliance
D) relies on appropriate technology
E) all of the above
```
E) all of the above
70
Green taxes on undesirable products or activities
A) discourage production and use of unsustainable products or services
B) have no positive effects
C) are a treat to a democracy
D) are unfair to honest businesses
E) are unconstitutional at this time
A) discourage production and use of unsustainable products or services
71
```
The gas-guzzler tax would be a good (?) to encourage a sustainable economy
A) economic incentive
B) economic disincentive
C) rebate
D) premium
E) refund
```
B) economic disincentive
72
```
(?) and (?) offer a 5% tax credit for companies that invest in recycling equipment
A) Iowa and Illinois
B) Texas and Oregon
C) Colorado and Wisconsin
D) Louisiana and Georgia
E) Florida and Kansas
```
C) Colorado and Wisconsin
73
Trade and interdependence (global markets) allow human populations to
A) flourish and reach their full economic potential
B) increase GNP and prosper
C) exploit resources better for growth
D) foster local sustainability
E) grow beyond the local and regional carrying capacity and increase environment damage
E) grow beyond the local and regional carrying capacity and increase environmental danger
74
The Valdez principles are
A) regulations to prevent future oil spills
B) guidelines for environmentally responsible corporate conduct
C) are part of the latest oil pollution treaty
D) were created by the earth summit
E) EPA mandates to industry
B) guidelines for environmentally responsible corporate conduct
75
```
Environmentally friendly goods and services are called
A) green products
B) tree-hugger paraphernalia
C) expendable resources
D) recyclables
E) organics
```
A) green products
76
```
Processes that produce little, if any, pollution, use local and are efficient are called
A) green processes
B) appropriate technologies
C) green seal technologies
D) new age technologies
E) whole earth technologies
```
B) appropriate technologies
77
Which of the following responses is a characteristic of appropriate technology?
A) machines are small to medium size
B) production is decentralized
C) product is durable
D) products are generally for local competition
E) all of the above
E) all of the above
78
```
The dollar value of goods per hour of laid employment is called the
A) net profit
B) gross profit
C) discount rat
D) return on investment
E) productivity
```
E) productivity
