18. Micro-loans are provided to rural poor and women by Grameen Bank in which country?

a.Bangladesh

b.India

c.Nigeria

d.None of the above

19. Adding external costs to the cost of goods and services would counter the amount people now pay for

poor health, high-priced insurance, and pollution controls.

a. True

b. False

20. Items made from natural resources such as tools, machines and factories are called natural capital

a.True

b.False

21. "When it is asked how much it will cost to protect the environment, one more question should be asked: How much will it cost our civilization if we do not?" Who made this statement?

22. Environmental economists generally agree on the notion of weak sustainability and propose to correct market imperfections by reforming current economic systems rather than completely redesigning them. This statement is:

a.True

b.False

23. An advantage of using market-based tradable permits for pollution and resource-use would be that big polluters and resource users won't be able to buy their way out.

a.True

b.False

24. In a purely free-market economic system:

a.Buyers and sellers freely interact without any restrictions or influence

b.There are no barriers to entry or participate in the market transactions

c.Parties have access to all pertinent information

d.All of the above

25. Implementation of which measure would require the government to reduce income or payroll taxes and enforce a safety net for poor and middle-class citizens?

a.Sin tax

b.Value added tax

c.Inheritance tax

d.Green tax

26. The increase in total cost from producing one more unit of good or service is called:

a.Variable cost

b.Marginal cost

c.Average cost

d.Fixed cost

27. A consumer making a significant change in consumption in response to a change in price is an example of:

28. Markets are generally the best providers of private and public goods

a. True

b.False

29. Which of the following is an example of market failure (when the quantity produced and consumed are not socially efficient)?

a.Monopoly

b.Oligopoly

c.External costs

d.All of the above

30. The tool used to identify products produced by environmentally sound methods is called:

a.Full-cost pricing

b.Eco-labelling

c.Green washing

d.None of the above

31. The GDP for a nation is 35 billion dollars; the value of nonmarket transactions of goods and services is 5

billion dollars; and the value of external costs is 15 billion dollars. The GPI for that country is:

a.45 billion dollars

b.55 billion dollars

c.35 billion dollars

d.25 billion dollars

32. One limitation of CBA is that it does not include the monetary value of resources or services that

cannot be determined based on market-based transactions.

a. True

b.False

33. People's willingness to pay for preservation of natural capital for use in the future is called:

a.Option value

b.Bequest value

c.Both (a) and (b)

d.None of the above