2. Which one of the following statements does not indicate an important difference between traditional economics and ecological economics?
Ecological economics places greater emphasis on the importance of energy resources
Ecological economics places greater emphasis on the carrying capacity of the environment
Ecological economics places greater emphasis on the scale of economic activity
Ecological economics places greater emphasis on the importance of natural laws
Ecological economics places greater emphasis on the flow of goods between households and firms
3. The ability of the environment to absorb and render harmless the by-products of human activity is called ...
Carrying capacity
The sink function
Depletion
Throughput
The source function
4. Which of the following is an example of the source function of the environment?
Trees absorb some of the carbon dioxide emitted by human activity
Wetlands reduce the pollution levels in water
Winds carry air pollution away from a city
Humans harvest fish from the oceans
Bacteria break down discarded wastes
5. Which one of the following relationships is not included in the standard circular flow model?
The flow of goods and services from firms to households
The flow of labor from households to firms
The flow of pollution from firms to households
The flow of money from households to firms
The flow of wages from firms to households
6. What statement below best describes how the environment is incorporated into the standard circular flow model?
The long-term availability of natural resources is considered
The pollution generated by firms and households is considered
The input of solar energy is considered
Natural resources are considered as inputs into the production process
The build-up of waste heat is considered
7. What is the primary external input into the broader ecological circular flow model?
Pollution
Solar energy
Fossil fuels
Geophysical cycles
Factors of production
8. What is the only net output of the broader ecological circular flow model?
Goods and services
Solar energy
Factors of production
Geophysical cycles
Waste heat
9. What is the standard economic technique used to compare present and future benefits and
costs?
Property rights
Microeconomics
Externalities
Macroeconomics
Discounting
10. Human activity is producing changes in which cycle that may lead to significant changes in the global climate?
Carbon cycle
Nitrogen cycle
Water cycle
Phosphorus cycle
Organic cycle
11. The Malthusian hypothesis ...
Has proven to be remarkably accurate
Is irrelevant for studying modern environmental problems
Has continuing implications for the debate on current environmental issues
Applies only to developing countries
Applies only to developed countries
12. What is the key to escaping the Malthusian trap?
Increasing productivity per capita
Increasing population
Increasing natural capital
Increasing population density
Definition of property rights
13. Real GNP per capita is defined as ...
GNP divided by population
GNP adjusted for inflation
GNP adjusted for capital depletion divided by population
GNP adjusted for inflation divided by population
GNP adjusted for depreciation divided by population
14. What two factors do standard economics consider as the most important in explaining productivity increases?
Increasing energy supplies and technological progress
Increasing capital stock and technological progress
Increasing energy supplies and increasing natural resources
Increasing capital stock and increasing energy supplies
Increasing capital stock and increasing natural resources
15. Which one of the following statements about sustainable development is false?
Sustainable development requires all energy to be derived from solar energy
Sustainable development considers the scale of the macro-economy
Sustainable development requires a population level below carrying capacity
Sustainable development combines modern and traditional agricultural techniques
Sustainable development requires some type of population policy
16. Which one of the following statements about sustainable development is false?
Some people have complained that sustainable development is a term devoid of specific content
Some people consider sustainable development just a slightly modified form of traditional economic growth
Sustainable development should provide for human needs without undermining the global ecosystem
Sustainable development would redefine economic goals
Sustainable development will require increased resource consumption
17. Which one of the following is an example of demand-side management?
Building a new nuclear power plant
Increasing oil exploration in the Arctic
Building a new solar energy plant
Replacing incandescent with compact fluorescent light bulbs
Increasing reliance on domestic oil sources rather than imports
18. The standard economic approach to pollution control
