PRELIM QUIZZES
QUIZ # 1 16/20 evaluation of the relative risk to human health,
1st
1. Statement- The circular flow model is the basis
for modeling the link between economic activity and
nature.
2nd Statement- Global pollution problems are those
whose effects are so intensive that the entire nation
is affected.
ONLY THE FIRST STATEMENT IS CORRECT
2. 1st Statement- Regional pollution problems are
those whose effects do not extend far from the
polluting source.
2nd Statement- Local pollution has effects that extend
well beyond the source of the pollution.
BOTH STATEMENTS ARE INCORRECT
3. 1st Statement- The relationship between
economic activity and the natural environment is
illustrated by the material balance model.
2nd Statement- The circular flow model is the basis
for modeling the link between economic activity and
nature.
BOTH STATEMENTS ARE CORRECT
4. 1st Statement- the first law of thermodynamics
states that the conversion capacity of nature is
limited.
2nd Statement- the second law of thermodynamics
asserts that matter and energy can be neither be
created nor destroyed.
BOTH STATEMENTS ARE INCORRECT
5. 1st Statement- residual refers to the presence of
matter or energy whose nature, location, or quantity
produces undesired environment effects.
2nd Statement- generally all pollutants are natural
others are anthropogenic.
ONLY THE SECOND STATEMENT IS CORRECT
6. 1st Statement- risk assessment refers to the
process of evaluating and selecting an appropriate
response to environmental risk.
2nd Statement- risk management is a scientific
or the ecology of a given
environmental hazard.
BOTH STATEMENTS ARE INCORRECT
7. 1st Statement- allocative efficiency and cost
effectiveness are the two underlying tool that
guides policy planning.
2nd Statement- hazard are the immediate caused of
lost.
ONLY THE SECOND STATEMENT IS CORRECT
8. 1st Statement- management strategies have a
short-term orientation and are ameliorative in
intent.
2nd Statement- pollution prevention strategies have
long term perspective and are aimed at precluding
the potential for environmental damage.
BOTH STATEMENTS ARE CORRECT
9. 1st Statement- a command and control policy
approach use limits or standards to regulate
environmental pollution.
2nd Statement- a market approach uses economic
incentives to encourage pollution reduction or
resource conservation.
BOTH STATEMENTS ARE CORRECT
10. 1ST Statement- residuals are in the form of gases
released into the atmosphere most are not harmful.
2nd Statement- some of these residuals are absorbed
naturally through what is called the environmental
economics.
BOTH STATEMENTS ARE INCORRECT
QUIZ 2 25/25
1. Refers to the interaction between consumers (or
buyers) and producers (or sellers) for the purpose
of exchanging a well-defined commodity.
MARKET
2. The quantities of a good the consumer is willing
and able to purchase at a set of prices during some
discrete time period.
DEMAND
3. State that there is an inverse relationship
between price and quantity demanded of a good.
LAW OF DEMAND
4. Excess of supply of a commodity.
SURPLUS
5. Productive decision that generate maximum
output given some stock of resources.
TECHNICAL EFFICIENCY
6. Refers to a commodity or service that is made
available to all members of a society.
PUBLIC GOOD
7. Refers to the quantities of a good the producer is
willing and able to bring to market at a given set of
prices during some discrete time period.
SUPPLY
8. There is a direct relationship between price and
quantity supplied of a good.
LAW OF SUPPLY
9. Represents all consumers who are willing and
able to purchase the commodity.
MARKET DEMAND
10. Requires that resources be appropriated such
that the additional benefits to society are equal to
the additional costs incurred.
ALLOCATIVE EFFIENCIENCY
11. The consumer’s “willingness to pay” refers to
the income constraint that limits consumer choice.
FALSE
12. Allocative efficiency arises when maximum
output is produced from some fixed stock of
resources, or equivalently, when minimal resources
are used to produce a given level of output.
FALSE
13. The “ability to pay” is the value or benefit the
consumer expects to receive from consumption of
the commodity.
FALSE
14. The decisions of sellers (or producers) are
modeled through a demand function.
FALSE
15. The law of supply states that there is indirect
relationship between quantity supplied and price.
FALSE
QUIZ 3 18/20
1. Which of the following NOT a tragedy of the
commons?
NOT IN THE LIST
2. Distributional effects MEANS?
ALL OF THE ABOVE
3. Property rights (Environmental market
failure), what does this mean in terms of
market failure?
NOT IN THE LIST
4. Property rights (Environmental market
failure), what is the consequence of having
property rights?
B AND C
5. Pollution permits (Environmental market
failure)
ONLY THE SECOND STATEMENT IS CORRECT
6. These are advantages of Pollution permits
(Environmental market failure) except?
NEED PERFECT INFORMATION FOR IT TO WORK
PERFECTLY
7. Which of the following NOT a disadvantages
of Pollution permits (Environmental market
failure)?
NOT IN THE LIST
8. The reasons why are externalities market
failure because there is no market in which
the unwilling consumers of pollution can
charge producers for the discomfort they
suffer. The lack of a market means there is no
incentive for the producer to produce less ->
market failure.
TRUE
9. Significance of technological change?
1ST STATEMENT = technological change
can influence goods that were once viewed as
public goods because it can be used to
exclude certain consumers e.g., technology
can be used to measure road usage.
2ND STATEMENT = technological change
makes it possible for the government to use
electronic pricing, e.g., motorists can be
charged for road use. These charges can be
varied at different times of day to create
incentives for car drivers to shift their travel
patterns from rush hour to non-rush hour.
BOTH STATEMENTS ARE CORRECT
10. 1ST STATEMENT = allocative efficiency
theory specifies the relevant market as
environmental as the good whose production
or consumption generates environmental
damage outside the market transaction.
2ND STATEMENT = environmental
externalities can occur in relation to both
production and consumption.
ONLY THE SECOND STATEMENT IS CORRECT
MIDTERM QUIZZES
QUIZ # 1 PERFECT
1. Requires the least amount of resources to be
used to achieve an objective
COST-EFFECTIVE ABATEMENT CRITERION
2. Incentive-based policy that encourages
conservation practices or pollution reduction
strategies
MARKET APPROACH
3. A policy that directly regulates polluters through
the use of rules or standards
COMMAND AND CONTROL APPROACH
4. A standard that specifies a pollution limit to be
achieved but does not stipulate the technology
PERFORMANCE BASED STANDARD
5. A standard that designates the equipment or
method to be used to achieve some abatement
level
TECHNOLOGY BASED STANDARD
6. Which designates the level of environmental
quality as a maximum allowable pollutant
concentration
AMBIENT STANDARD
7. A standard set to improve society’s well being
with no consideration for the associated
BENEFIT BASED STANDARD
8. The sum of all polluter’s marginal abatement
cost plus government’s cost of monitoring and
enforcing these activities.
MARGINAL SOCIAL COST OF ABATEMENT
9. Added costs incurred by government associated
with monitoring and enforcing abatement activities
MARGINAL COST
10. The change in cost associated with increasing
abatement, using the least-cost method
MARGINAL ABATEMENT COST
11. All market-based instrument are well suited to
all environmental problems
FALSE
12. Both the nature of environmental problem and
the market context must be understood before any
policy can be implemented with success
TRUE
13. The deposit/ refund approach to air pollution
control uses economic incentives and the price
mechanism to achieve an environmental standard
FALSE

14. A pollution charge can be implemented as a
product or as an emission charge
TRUE
15. An emission charge is leveled directly on the
actual release of the pollutants
TRUE
QUIZ # 2 PERFECT
1st
1. = All market-based instrument are well suited
to all environmental problems
2nd= Both the nature of environmental problem
and the market context must be understood before
any policy can be implemented with success
BOTH STATEMENTS ARE INCORRECT
2. 1st = The deposit/ refund approach to air
pollution control uses economic incentives and the
price mechanism to achieve an environmental
standard
2nd= A pollution charge can be implemented as a
product or as an emission charge
ONLY THE 2ND STATEMENT IS CORRECT
3. 1st = An emission charge is levied directly on the
actual release of the pollutants
2nd = Abatement equipment subsidies are designed
to increase the cost of abatement
ONLY THE 1ST STATEMENT IS CORRECT
4. 1st = What makes deposit/refund system unique
is that once established the incentives operate with
unlimited supervision
2nd = Per-unit pollution reduction subsidies pay the
polluter for abating beyond some predetermined
level
ONLY THE 2ND STATEMENT IS CORRECT
5. 1st = The theoretical premise of a pollution
charge is to internalize the cost of environmental
damages by pricing the pollution-generating
activity
2nd = The government’s view of the economic
solutions to environmental problems could be
summed up in a short phrases; if it moves, tax it. If
it keeps moving, regulate it and if it stops moving,
subsidies it.
BOTH STATEMENTS ARE CORRECT
6. An incentive based policy that encourages
conservation practices or pollution reduction
strategies
MARKET APPROACH
7. A fee charged to the polluter that varies with the
quantity of pollutants released
POLLUTION CHARGE
8. A system that imposes am up-front charge to pay
for potential pollution damages that is returned for
positive action, such as returning a product for
proper disposal or recycling
DEPOSIT REFUND
9. A payment or tax concession that provides
financial assistance for pollution reductions or
plans to abate in the future
SUBSIDY
10. The establishment of a market for rights to
pollute, using either credits or allowances
POLLUTION PERMIT TRADING SYSTEM
11. A fee added to the price of a pollution-
generating product based on its quantity or some
attribute responsible for pollution
PRODUCT CHARGE
12. A fee imposed directly on the actual discharge
of pollution
EMISSION OF AFFLUENT CHARGE
13. A payment aimed at lowering the cost of
abatement technology
ABATEMENT EQUIPMENT SUBSIDY
14. Tradeable permits issued for emitting below an
established standard
POLLUTION CREDIT
15. Tradeable permits that indicate the maximum
level of pollution that may be released
 POLLUTION ALLOWANCE
QUIZ # 3 MANIFESTING NA PERFECT
1. 1st statement = Normally involuntary risk is the
result of conscious decision
2nd = Hazard is the immediate cause of loss arising
from accident and fire
BOTH STATEMENTS ARE CORRECT
2. 1st = Ambient air pollutant, worker exposure to
chemicals in industry and agriculture indoor
pollution are high risk to human health
2nd = Risk benefit strategy is commonly mandated
in environmental law
BOTH STATEMENTS ARE CORRECT
3. 1st = Benefits cost analysis identify an acceptable
risk level based on the criterion of allocative
efficiency
2nd = Voluntary risk are deliberately assumed at an
individual level
BOTH STATEMENTS ARE CORRECT
4. 1st = Environmental risk measure the likelihood
that damage will occur due to exposure to
environmental hazard
2nd = Risk- benefit analysis is aimed at
simultaneously maximizing expected benefits and
minimizing the risk
BOTH STATEMENTS ARE CORRECT
5. Which of the following is/are medium risk to
natural ecology and human welfare
ALL OF THE ABOVE
6. Quantitative component of risk characterization
gives context to the numerical measure
FALSE
7. An assessment of risks of a hazard along with the
benefits to society of not regulating environmental
hazard along with the level of associated risk
RISK BENEFIT ANALYSIS
8. The decision-making process of evaluating and
choosing from alternative responses to
environmental risk
RISK MANAGEMENT
9. Qualitative and quantitative evaluation of risk of
environmental hazard to health or the
environment
RISK ASSESSMENT
10. Considers the risk of a particular exposure and
estimates the impact to human health (applied to
populations, estimating probability and magnitude
of an event)
RISK ASSESSMENT
11. These are examples of hazards, except?
NOT IN THE LIST
12. Risk means
1st = The estimated probability that a hazard-
related decision will have a positive or favorable
consequence and all decisions have some risk
2nd = Planting rain-fed crops, there is a risk in
planting these because drought is always a
possibility
ONLY THE 2ND STATEMENT IS CORRECT
13. This can be distinguished from risk, and can be
defined as a condition describing the degree to
which the outcomes to a decision are unknown
UNCERTAINTY
14. These are true about Risk perception, except:
NOT IN THE LIST
15. Which of the following not a political economy
of hazards
NOT IN THE LIST
FINALS QUIZZES
QUIZ # 1 15/20
1. 1st Statement = Incremental cost is the
reduction in health, ecological, and property
damages associated with an environmental policy
initiative.
2nd Statement = The primary environmental QUIZ # 2 20/20
benefit refers to the damage reducing effect that's 1. _______ Contaminants that come about through
a direct consequence of implementing policy non-artificial processes in nature
BOTH STATEMENTS ARE CORRECT 5. NATURAL POLLUTANTS

2. Benefit received from the continuance of an 2. Contaminants associated with human activity
environmental good. 3. ANTHROPOGENIC POLLUTANTS
B. EXISTENCE VALUE
3. Substance know to be hazardous to health and
3. Benefit derived from physical use of or access to welfare, characterized as harmful by criteria
an environmental good. documents
C. USERS VALUE 1. CRITERIA POLLUTANTS

4. 1st Statement = Direct user value refers to the 4. Any nonstationary polluting source. Mobile
benefit derived from directly consuming services source
provided by an environmental good 4. MOBILE SOURCE
2nd Statement = Indirect user value refers to the
benefit derived from indirect consumption of an 5. Maximum allowable concentrations of criteria air
environmental good pollutants
BOTH STATEMENTS ARE CORRECT 2. NAAQS

5. 1st Statement = Environmental benefits 6. A fixed-site produce of pollution

normally measure damage reductions. 3. STATIONARY SOURCE
2nd Statement = Environmental policy brings
about changes in damage reductions, yielding 7. Standard applicable to every major source of any
incremental benefits identified hazardous air
BOTH STATEMENTS ARE CORRECT 1.NESHAP

6. Since environmental quality is a public, non- 8. A procedure outlining how a state intends to
marketed good, demand cannot be identified implement, monitor, and enforce the NAAQS and
because of non-revelation of preferences the NESHAP
TRUE 3. SIP

7. What needs to be considered during 9. An AQCR not in compliance with in NAAQS

assessment?
E. ALL OF THE ABOVE
8. Two factors involved in risk assessment?
B. PROBABILITY & F. SEVERITY
Risk avoidance refers to the degree of damage of a
happening (how bad is it?) while probability refers
to the chance that something will happen.
11. Behavioral linkage approach estimates benefits
based on a technical relationship between an
environmental resource and the user of that
resource
FALSE
2. NON-ATTAINMENT AREA
10. An ACQR meeting or exceeding the NAAQS
1. PSD AREA
11. A guideline to improve society’s well being with
no allowance for balancing with associated costs
2. BENEFITS-BASED DECISION RULE
12. An index that signifies the worst daily air quality
in an urban area
5. AIR QUALITY INDEX
13. Anthropogenic pollutants include such
substance as carbon monoxide and sulfur dioxide
emission from electricity generation
TRUE
14. Natural pollutants are visually beyond human
control
TRUE
15. Both environmental justice, an equity criterion,
and allocative efficiency, an economic criterion, can
be used to assess air quality policy.
TRUE
16. Primary National Ambient Air Quality Standards
are set to protect public welfare
FALSE
17. Secondary National Ambient Air Quality
Standards are set to protect public health
FALSE
QUIZ # 3 MANIFESTING NA PERFECT
1. Cause by pollutants that chemically react in
sunlight to form new substances.
PHOTOCHEMICAL SMOG
2. A vehicle certified to meet stringent emission
standards.
CLEAN FUEL VEHICLE
3. Has enhanced oxygen content to allow for more
complete combustion.
OXYGENATED VEHICLE
4. Emits less hydro-carbons, carbon monoxide, and
toxics than conventional gasoline.
REFORMULATED GASOLINE
5. Fuels such as methanol and ethanol, or power
sources, such as electricity, used in a clean fuel
vehicle.
CLEAN ALTERNATIVE FUELS
6. A family of chemicals believed to contribute to
ozone depletion.
CHLOROFLUORO-CARBONS
7. Thinning of the ozone layer, originally observed
as an ozone hole over Antarctica.
OZONE DEPLETION
8. Ozone present in the stratosphere that protects
the earth from ultraviolet radiation.
OZONE LAYER
9. A numerical score that signifies a substance’s
potential for destroying stratospheric ozone to CFC.
OZONE DEPLETION POTENTIAL
10. Allows firms to produce or import ozone
depleters if they hold an appropriate number of
tradeable allowances.
ALLOWANCE MARKET FOR OZONE-DEPLETING
CHEMICALS
11. A fee added to the price of a pollution-
generating product based on its quantity or some
attribute responsible for pollution.
PRODUCT CHARGE
12. An escalating tax on the production of ozone-
depleting substances.
ALLOWANCE MARKET FOR OZONE-DEPLETING
CHEMICALS
13. Increased temperature of the earth’s surface
caused by accumulating GHGs that absorb the
sun’s radiation.
GREENHOUSE GASES
14. Gases collectively responsible for the
absorption process that naturally warms the
earth.
GREENHOUSE GASES
15. A major alteration in a climate measure such as
temperature, wind, and precipitation that is
prolonged.
CLIMATE CHANGE
16. Measures that heat-absorbing capacity of a
GHG relative to CO2 over some time period.
GLOBAL WARMING POTENTIAL
17. Natural absorbers of CO2, such as forests and
oceans.
CARBON SINKS
18. Tradeable permit system for GHG emissions is
based on the issuance of marketable permits,
where each allows the release of some amount of
GHGs.
TRUE

19. A fee that varies with the amount of pollutants

released.
POLLUTION CHARGE

20. A tax aimed at rectifying a market failure and

improving resource allocation.
CORRECTIVE TAX