Economics MCQs

Page No. 302

The green house effect is the phenomenon by which ?


abiological diversity is dominant in agricultural production

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bthe globe’s water pollution affects plankton

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c the earth’s atmosphere traps infrared radiation

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dclimatic changes occur naturally in the forest

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


arivalry and exclusion in consumption

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bnonrivalry and nonexclusion in consumption

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crivalry but nonexclusion in production

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dnonrivalry but exclusion in usage

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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

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bparticipants will organize their transactions

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c violence displacement erosion and poverty are minimized

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dindividuals overuse of the biosphere is curtailed

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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

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b II and III only

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c I, II and III only

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dI, II , III only IV

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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

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bSaudi Arabia

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cIraq

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d Venezuela

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View Answer Saudi Arabia

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


aexamples of Coase’s theorem

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b internalization of negative spillover effects

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cmarginal abatement cost

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dexamples of a free rider

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


a external economies

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bnegative externalities

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cinternal spilloverinternal spillover

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dSocial distortion

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Land and natural resources are considered ?


acapital accumulation

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b common property resources

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cnon-producible

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doutput

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View Answer non-producible

The Genuine Progress indicator is ?


aalso known as index of Sustainable Economic Welfare per capita

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bGDP plus resource depletion and environmental cost

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cresource depletion and environmental cost divided by GDP per capita

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dincreasing from 1976 to 2000

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


aattains the global optimal level of common property resource

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brelies on internationally tradable emission permits

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c minimizes free riders of public goods

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dreduces ozone depletion through the cutting of chlorofluorocarbon production

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