Practice questions on NREE course

1. Which one of the following is an examples a positive externality?

A. Traffic jams
B. A neighbour’s barking dog
C. Public Immunization
D. Smoking cigarette

2. Which one of the following is the root causes of environmental problems?

A. Uniform distribution of wealth

B. Rapid population growth
C. Increasingly sustainable use of resources
D. Using non-renewable resources rationally

3. Which one of the following are not the major causes of market failure?

A. Lack of market for environmental services

B. Existence of externalities
C. The presences of public goods
D. The existences well-defined property rights

4___________ is a fee, collected by the government, charged on each unit of pollution

emitted.

A. Emission standard
B. Emission charge
C. Command and control
D. Transferable Emission Permits

5. Which one of the following tool is used to manage environmental problem?

A. Waste management
B. Environmental impact assessment
C. Reusing and recycling methods
D. All of the above
6. Which one of the following are not the main reasons we need to value the environment?

A. Environment providing value to human being

B. Many environmental goods and services have market prices
C. Many environmental goods and services have no market prices
D. All of the above

7. A good or a service or a resource is non-rival if only if _______.

A. It is not possible to prevent someone from enjoying the benefit.

B. It is possible to prevent someone from enjoying the benefit of it.
C. Its use by one person does not decrease the quantity available for someone else
D. Its use by one person decreases the quantity available for someone else.

8. __________is commonly applied to variations in housing prices that reflect the value of
local environmental attributes.

A. Travel cost methods

B. Choice experiment methods
C. Hedonic price methods
D. Contingent valuation methods

9. Which one is not a necessary condition for markets to produce efficient allocation of
natural resources?

A. Well-defined and enforceable private property rights.

B. All transactions have perfect information.
C. Markets exist for all goods and services produced and consumed
D. Existence of externalities

10. Which one of the following valuation techniques is used to estimate environmental
resources associated with outdoor creational activity?

A. Contingent Valuation Method

B. Travel Cost Method
C. Replacement cost
D. Hedonic Pricing Method
11. What is it called when government uses laws and regulations to dictate the standards
and/or technology to reduce pollution?

A. Command-and-control regulations
B. Pigouvian Taxes.
C. Subsidy
D. Emission charge

12. When efficient allocation of pollution flow occurs?

A. Marginal abatement cost less than marginal damage cost

B. Marginal abatement cost equal to marginal damage cost
C. Marginal abatement cost greater than marginal damage cost
D. All of the above

13._____________refers to about all benefits and costs accrue to owner to the owner only.

A. Universality
B. Transferability
C. Enforceability
D. Exclusivity

14. Which one of the following conditions are leads to price may not reflect the scarcity of
the resource?

A. Subsidy
B. Price control
C. Artificial prices
D. All of the above

15. Which one of the following is not true about renewable natural resources?

A. Its stock can be increased or decrease.

B. No renewable resource can regenerate to the level above the carrying capacity of the
ecosystem.
C. Their rate of regeneration should be seen in long period of time
D. Renewable resources can be disappeared if the rate of harvest exceeds the rate of
natural growth rate of resources
16. When is pollution damaged is occur?

A. There is low concentration of pollutant enter to the environment

B. If emissions exceed the absorptive capacity of the environment
C. High amount of waste material absorbed by the environment
D. All of the above

17._______is derived from the natural interaction between different ecological systems and
processes.

A. Direct use value

B. Existence value
C. Indirect use value
D. Monetary value

18. The value of simply knowing that a resource exists is called_____?

A. Stewardship value
B. Bequest value
C. Option value
D. Existence value

19. _____________ is the most widely used method for estimating non-use values?

A. Hedonic price methods

B. Contingent valuation methods
C. Travel cost methods
D. All of the above

20. Which one of the following is not studding by contingent valuation methods?

A. Improvements in water quality for fishing or swimming

B. Improvements in visibility from reduced pollution
C. Estimating the prices of houses
D. Preservation of endangered species

21. Economists have primarily concentrated on________?

A. Inherent value
 B. Monetary Value
C. Instrumental values
D. In all value

22. ____________ occurs when the conditions for perfect competition are not met.

A. Market failures
B. Government failures
C. Policy failures
D. All of the above

23. ____________describes a situation when overuse of common goods leads to depletion of

the common resource.

A. Free rider
B. Tragedy of the commons
C. Open access resources
D. Non -rival

24. Someone who derives the benefits from commodity without contributing to its supply is
known as_______________?

A. Tragedy of the commons

B. Open access resources
C. Free rider
D. Non -rival

25. When the___________ characteristic of an efficient property right

structure is violated leads to externality rise or exist.

A. Universality
B. Exclusivity
C. Transferability
D. Enforceability

26. In general, in the presences of positive externality, the market leads to________.

A. Under production,
B. Resource underutilization
 C. Inefficiency
D. All of the above

27. All of the following is manifest of Government Failure except ___?

A. Distortion of markets
B. Solving the ‘hot topics’ of the day
C. Taxes on fuel
D. Perfect information

28. What types of action should not be done when negative externality is rise?

A. Taxes
B. Subsidy
C. Command and control
D. Couse Theorem

29. Why government intervene?

A. To correct shortages or surpluses

B. To provide when the market does not or cannot provide some goods or services.
C. To influence property right
D. All of the above

30. Entitlement of the given resources can be owned by______?

A. Individuals
B. Government
C. Nobody
D. All of the above