Economics MCQs

Page No. 302

The green house effect is the phenomenon by which ?


abiological diversity is dominant in agricultural production


bthe globe’s water pollution affects plankton


c the earth’s atmosphere traps infrared radiation


dclimatic changes occur naturally in the forest



Many environmental resources are public goods, which are characterized by ?


arivalry and exclusion in consumption


bnonrivalry and nonexclusion in consumption


crivalry but nonexclusion in production


dnonrivalry but exclusion in usage



According to Coase’s theorem when property rights are well defined and legally enforceable and transactions costs are not prohibitive ?


a population growth leads to rigid land rights


bparticipants will organize their transactions


c violence displacement erosion and poverty are minimized


dindividuals overuse of the biosphere is curtailed



Micheal Roemer’s three-sector model shows that growth in the booming export sector I- reduces the price of foreign exchange II- retards other sectors’ growth by reducing incentives to export other commodities III- reduces incentives to replace domestic goods for imports IV- raises factor and input prices for non-booming sectors ?


aI and III only


b II and III only


c I, II and III only


dI, II , III only IV



Which of the following country has 25 percent of the world’s estimated oil reserves and the lowest cost production as well as a dominant role in OPEC pricing ?


aRussia


bSaudi Arabia


cIraq


d Venezuela


View Answer Saudi Arabia

The government levying taxes on polluters or charging a surcharge for pesticide use are ?


aexamples of Coase’s theorem


b internalization of negative spillover effects


cmarginal abatement cost


dexamples of a free rider



Air pollution from automobile exhausts, and water pollution steel plants are examples of ?


a external economies


bnegative externalities


cinternal spilloverinternal spillover


dSocial distortion



Land and natural resources are considered ?


acapital accumulation


b common property resources


cnon-producible


doutput


View Answer non-producible

The Genuine Progress indicator is ?


aalso known as index of Sustainable Economic Welfare per capita


bGDP plus resource depletion and environmental cost


cresource depletion and environmental cost divided by GDP per capita


dincreasing from 1976 to 2000



The Montreal Protocal, signed in 1987 and strengthened in 1990 ?


aattains the global optimal level of common property resource


brelies on internationally tradable emission permits


c minimizes free riders of public goods


dreduces ozone depletion through the cutting of chlorofluorocarbon production



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