360+ Environmental Economics Solved MCQs

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Chapter: Introduction to Environmental Economics
1.

The Tragedy of the Commons is a theory put forth by

A. Garrelt-Hardin
B. Adam Smith
C. W.C Clark
D. Samuelson
Answer» A. Garrelt-Hardin
discuss
2.

Environmental economics attempts to study the inter relationship between

A. Environment and resource allocation
B. Economic agents and environment
C. Economic problems and environment
D. Environment and ecology
Answer» B. Economic agents and environment
discuss
3.

Ecology deals with the household of nature while economics deals with

A. Household of goods
B. Household of service
C. Household of man
D. All of the above
Answer» C. Household of man
discuss
4.

Which of the following is environment theory that has developed with the integration of economics

A. Environment resource planning
B. Sustainable environment
C. Environment cost analysis
D. Environment pricing
Answer» A. Environment resource planning
discuss
5.

Market failure occurs when market do not maximize

A. Production
B. Utility
C. Welfare
D. Resource utilization
Answer» C. Welfare
discuss
6.

Environment good is

A. Car
B. House
C. Air, water, sunlight
D. Wheat
Answer» C. Air, water, sunlight
discuss
7.

Environmental Economics is

A. Social Science
B. Positive & normative science
C. Micro economics
D. Macro economics
Answer» B. Positive & normative science
discuss
8.

Public goods are

A. Non-excludables
B. Public bads
C. Free riders
D. Externalities
Answer» A. Non-excludables
discuss
9.

There is rivalry and exclusiveness in the use of

A. Public good
B. Private good
C. Public bad
D. None of them
Answer» B. Private good
discuss
10.

If A imposed externality on B and B has not imposed externality on A, thent the externality is

A. Unidimensional
B. Bidimensional
C. Multidimentional
D. Complex dimensional
Answer» A. Unidimensional
discuss
11.

Which one is not the cause of market failure

A. Externalities
B. Imperfect market
C. Indivisibilities
D. Pareto optimality
Answer» D. Pareto optimality
discuss
12.

The Paretian condition for a public good is that

A. its marginal social benefit(MSB) should be greater than marginal social cost(MSC)
B. its MSB should be less than MSC
C. its MSB should be equal to MSC
D. MSB should be divided by MSC
Answer» C. its MSB should be equal to MSC
discuss
13.

An increase in the consumption of a good or service which affects favourably the consumption patterns and desires of other consumers is

A. An externality of consumption
B. An externality of production
C. An externality of exchange
D. An externality of allocation of resources
Answer» A. An externality of consumption
discuss
14.

If A imposed an externality on B and if B imposed externality on A as well

A. It is unidirectional
B. It is reciprocal
C. It is multidirectional
D. It is marginal unidirectional
Answer» B. It is reciprocal
discuss
15.

Which is not a measure for solution of market failure

A. Implementation of Property Rights
B. Direct Control Policy of Govt.
C. Sale of Pollution Permits
D. Negative Externalities
Answer» D. Negative Externalities
discuss
16.

Which is not amomg the three types of Property Rights

A. Private Property Rights
B. Human Rights
C. Common Property Rights
D. Open-access common property
Answer» B. Human Rights
discuss
17.

What is the Tragedy of the Common

A. It results from an inherent tension between collective and individual responsibility
B. It can always be resolved through privatization and nationalization of the commons
C. It is independent of the carrying capacity of the commons
D. All of the above
Answer» A. It results from an inherent tension between collective and individual responsibility
discuss
18.

In case of negative externality, the social marginal cost will

A. Exceed the private marginal cost
B. Be equal to private marginal cost
C. Fall short of private marginal cost
D. Bear no significant relation to private marginal cost
Answer» A. Exceed the private marginal cost
discuss
19.

In case of positive externality social marginal cost

A. exceed private marginal cost
B. be equal to private marginal cost
C. have no specific relation to private marginal cost
D. fall short of private marginal cost
Answer» D. fall short of private marginal cost
discuss
20.

Common property

A. Is owned by specific people
B. Is inexhaustible
C. Refers strictly to land resources
D. Refers to goods owned by society at large and freely used by anyone
Answer» D. Refers to goods owned by society at large and freely used by anyone
discuss
21.

When consumption of a good is non-rival and non-excludable the good is

A. public good
B. mixed good
C. private good
D. service
Answer» A. public good
discuss
22.

An example of a public good is

A. a loaf of bread
B. national defence service
C. a ford truck
D. a home computer
Answer» B. national defence service
discuss
23.

Public goods are those goods for which consumption is

A. Rival
B. Regulated
C. Non-rival
D. Unregulated
Answer» C. Non-rival
discuss
24.

Non-rivalry is a feature of

A. Public good
B. Goods but not service
C. Excludable good
D. All non-excludable goods
Answer» A. Public good
discuss
25.

Non-excludability is a feature of

A. Goods but not service
B. Goods with an external cost
C. Public goods
D. All non-rival goods
Answer» C. Public goods
discuss
26.

Pure private goods are those for which consumption is

A. Non-rival and excludables
B. Rival and excludable
C. Rival and non-excludable
D. Non-rival and non-excludable
Answer» B. Rival and excludable
discuss
27.

When consumption is rival and excludable, the product is

A. Private good
B. Service not a good
C. Mixed good
D. Public good
Answer» A. Private good
discuss
28.

A good or service or a resource is non-rival 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 decreases the quantity available for someone else
D. Its use by one person does not decrease the quantity available for someone else
Answer» D. Its use by one person does not decrease the quantity available for someone else
discuss
29.

If consumption of a good A by one person does not decrease the consumption of good A by another person, then the good is said to be

A. Non-excludable
B. Excludable
C. Non-rival
D. Rival
Answer» C. Non-rival
discuss
30.

If I increase my consumption of a good and this has no impact on your ability to consume the same good, then the good is

A. A free good
B. Non-rival
C. Both non-rival and non-exclusive
D. Non-exclusive
Answer» B. Non-rival
discuss
31.

If one person’s consumption of a good decreases other people’s use of a good, the good is said to be

A. Rival
B. A good produced by a natural monopoly
C. A common resource
D. Excludable
Answer» A. Rival
discuss
32.

A public good is

A. Neither rival nor excludable
B. Rival but not excludable
C. Both rival but excludable
D. Not rival but excludable
Answer» A. Neither rival nor excludable
discuss
33.

A private good is

A. Rival but not excludable
B. Not rival but excludable
C. Both rival but excludable
D. Neither rival nor excludable
Answer» C. Both rival but excludable
discuss
34.

A common resource is

A. Not rival but excludable
B. Both rival and excludable
C. Rival but not excludable
D. Neither rival nor excludable
Answer» D. Neither rival nor excludable
discuss (2)
35.

Public goods are difficult for a private market to provide due to

A. The rivalness problem
B. The public goods problem
C. The Tragedy of the commons
D. The free rider problem
Answer» D. The free rider problem
discuss
36.

A free rider is a person who

A. Receives the benefits of a good but avoids paying for it
B. Pays for a good but fails to receive any benefit from the good
C. Fails to produce good but is allowed to consume goods
D. Produces a good but fails to receive payment for the good
Answer» A. Receives the benefits of a good but avoids paying for it
discuss
37.

Which of the following is an example of a public good

A. Hot dogs at a picnic
B. Whales in the ocean
C. National defence
D. Apples on a tree in a public park
Answer» D. Apples on a tree in a public park
discuss (1)
38.

A positive externality affects market efficiency in a manner similar to a

A. Rival good
B. Public good
C. Private good
D. Common resource
Answer» B. Public good
discuss
39.

A negative externality affects market efficiency in a manner similar to

A. An excludable good
B. A private good
C. A common resource
D. A public good
Answer» C. A common resource
discuss
40.

Which of the following is an example of a common resource

A. A fire works display
B. A national defence
C. Iron ore
D. A national park
Answer» D. A national park
discuss
Chapter: Development and Environment
41.

In which stage of demographic transition is the population growth rate highest?

A. First
B. Second
C. Third
D. Fourth
Answer» B. Second
discuss
42.

The author of the book An Essay on Principles of Population is

A. Malthus
B. James Princep
C. Keynes
D. Frank Notenstein
Answer» A. Malthus
discuss
43.

Consider the following statements and identify the right ones.
i. According to the Malthusian theory, supply of food grains increase in geometric progression
ii. The population grows in arithmetic progression.

A. I only
B. ii only
C. both
D. none
Answer» D. none
discuss
44.

Consider the following statements and identify the right ones.
i. According to the theory of demographic transition, in the first stage, birth rate is low but death rate is high
ii. The difference between them is high

A. I only
B. ii only
C. both
D. none
Answer» D. none
discuss
45.

Consider the following statements and identify the right ones.
i. In the second stage of demographic transition, death rates declines.
ii. The difference between birth rate and death rate decreases

A. I only
B. ii only
C. both
D. none
Answer» C. both
discuss
46.

Consider the following statements and identify the right ones.
i. The third stage is the period of declining growth rates.
ii. The second stage of demographic transition witnesses population explosion

A. I only
B. ii only
C. both
D. none
Answer» C. both
discuss
47.

Arrange the birthrates of the states in the highest to lowest order.

A. UP, Bihar, Rajasthan, Karnataka
B. Bihar, UP, Rajasthan, Karnataka
C. UP, Rajasthan, Bihar, Karnataka
D. UP, Bihar, Karnataka, Rajasthan
Answer» A. UP, Bihar, Rajasthan, Karnataka
discuss
48.

.The demographic transition model was developed primarily to explain the:

A. social and cultural changes resulting from high levels of in-migration.
B. effect of population movement from rural to urban areas.
C. population changes caused by large short-term changes in birth rates.
D. effect of changing death and birth rates on total population.
Answer» D. effect of changing death and birth rates on total population.
discuss
49.

Which of the following is a method to measure relative poverty?

A. Gini coefficient
B. Lorenz curve
C. Both a and b
D. Poverty line
Answer» D. Poverty line
discuss
50.

Which of the following is associated with poverty estimation ?

A. Tendulkar committee
B. Lakdawala committee
C. Saxena committee
D. All the above
Answer» A. Tendulkar committee
discuss
51.

Consider the following statements and identify the right ones.
i. Poverty line is defined as the mid-point of monthly per capita expenditure class having a daily calorie intake of 2400 calorie per person in urban areas.
ii. In rural areas, it is 2100 calories a day

A. I only
B. ii only
C. both
D. none
Answer» D. none
discuss
52.

Which of the following is the nodal Ministry to identify BPL families in urban areas?

A. Ministry of Economic Affairs
B. Ministry of Social Welfare
C. Ministry of Housing and Poverty Alleviation
D. Ministry of Urban Development
Answer» C. Ministry of Housing and Poverty Alleviation
discuss
53.

When poverty is taken in relative term and is related to the distribution of income consumption expenditure its called:

A. Law line poverty
B. Absolute poverty
C. Relative poverty
D. None
Answer» C. Relative poverty
discuss
54.

______ are often used for measuring poverty in relative sense:

A. HDI
B. Gini co-efficient
C. Planning Commission
D. All of these
Answer» A. HDI
discuss
55.

Poverty is a

A. Social problem
B. Economic problem
C. Political problem
D. Religious problem
Answer» A. Social problem
discuss
56.

EKC is

A. A inverted U shaped curve showing increase in per capita as well as pollution
B. A U shaped curve showing the level of development and carbon emission
C. A U shaped curve showing relation between carbon emission and ozone layer depletion
D. A bell shaped relationship between concentration of certain pollution emission and per capita real GDP
Answer» D. A bell shaped relationship between concentration of certain pollution emission and per capita real GDP
discuss
57.

Demographic Transition states that as a country becomes industrialed

A. The death rate declines but not the birth rate
B. The birth rate and death rate decline together
C. The death rate decline and then the BR decline
D. The BR declines and then the DR declines
Answer» D. The BR declines and then the DR declines
discuss
58.

In which stage in the demographin transition theory do death rates fall while birth rates remain high leading to rapid population growth?

A. Stage 1
B. Stage 4
C. Stage 3
D. Stage 2
Answer» D. Stage 2
discuss
59.

Which year is called the demographic divide in India?

A. 1881
B. 1901
C. 1921
D. 1951
Answer» C. 1921
discuss
60.

Which period is referred to as period of population explosion

A. 1901-1921
B. 1921-1951
C. 1951-1981
D. 1981-2001
Answer» C. 1951-1981
discuss
61.

The second stage of Demographic Transition Theory is characterized by

A. High BR and high DR
B. High BR and low DR
C. Low BR and low DR
D. Low BR and Low DR
Answer» B. High BR and low DR
discuss
62.

Economic development is characterized by

A. Structural change in the economy
B. Change in occupational structure
C. Both a) and b)
D. None of the above
Answer» C. Both a) and b)
discuss
63.

Which of the following explain the term economic development?

A. Improvement in the technology involved
B. Improve,ment in production
C. Improvement in distributuin system
D. All of the above
Answer» D. All of the above
discuss
64.

World Population Day is observed on

A. 15th August
B. 11th July
C. 26th January
D. 25th December
Answer» B. 11th July
discuss
65.

The number of deaths per 1000 people in a year is called

A. Mortality
B. Death
C. Crude death rate
D. Zero population growth
Answer» C. Crude death rate
discuss
66.

The maximum number of individuals that can be supported by a given environment is called

A. Environmemt stress
B. Environment resistance
C. Carrying capacity
D. Human carrying capacity
Answer» C. Carrying capacity
discuss
67.

Who are responsible for the public consultation process of Environmental Impact Assessment

A. State Pollution Control Board (SPCB)
B. SPCB and District Collector
C. SPCB and CPCB Chairman
D. SPCB and Civil Society
Answer» B. SPCB and District Collector
discuss
68.

GIS is applied to study

A. View shed analysis
B. EIA
C. Wildlife habitat analysis
D. All of the above
Answer» B. EIA
discuss
69.

EIA stands for what?

A. Environmental Impact Area
B. Environment Impact Audit
C. Ecologiacal Impact Assessment
D. Environmental Impact Assessment
Answer» A. Environmental Impact Area
discuss
70.

EIA is mandatory under which one of the following India’s legislation

A. Indian Forest Act
B. Air Act
C. Wildlife Protection Act
D. Environment Protection Act
Answer» D. Environment Protection Act
discuss
71.

EIA is necessary because

A. Development is bad for the environment
B. There is growing interest in sustainability
C. Environmental impacts of development are of public interest
D. None of the above
Answer» C. Environmental impacts of development are of public interest
discuss
72.

The primary reason for EIA is to

A. Mitigate existing environmental impacts of development
B. Predict the size of impacts of development
C. Describe proposed development
D. Identify the environmental consequences of development in advance
Answer» D. Identify the environmental consequences of development in advance
discuss
73.

The Hartwick Rule depends on

A. The sustainability of physical capital and natural capital
B. The goodwill of the future generation
C. The substitutability of different forms of physical capital
D. The maintenance of physical flows of certain key individual resources
Answer» A. The sustainability of physical capital and natural capital
discuss
74.

In EIA study, enterpretation and evaluation should consider

A. Uncertainty of possible impacts
B. Significance of measured impacts
C. Comparison of alternatives
D. All of the above
Answer» D. All of the above
discuss
75.

Economic development refers to

A. Economic growth
B. Economic growth plus changes in output distribution and economic structure
C. Sustainable increase in GNP
D. Improvement in the well being of the urban population
Answer» C. Sustainable increase in GNP
discuss
Chapter: Sustainable Development and Valuation of Environment
76.

What was the Bruntland Commision?

A. The world commission on economic growth
B. The world commission on worldwide neo-liberal reform
C. The world commission on environment and development
D. The world commission on trade and development
Answer» A. The world commission on economic growth
discuss
77.

A stationary population is when population growth is

A. Increasing at an increasing rate
B. Decreasing
C. Zero
D. 100%
Answer» C. Zero
discuss
78.

Sustainable development means

A. Development of underdeveloped countries
B. Meeting the needs of the present generation without compromising the needs of the future generation
C. Development of underdeveloped resources
D. Development of water resources
Answer» B. Meeting the needs of the present generation without compromising the needs of the future generation
discuss
79.

Ecological Foot Prints Approach is associated with

A. David Pearce
B. Daly & Cobb
C. Solow
D. Rees & Wackernagel
Answer» D. Rees & Wackernagel
discuss
80.

According to MGD Report, what is the percentage of extreme poverty in India in 2011?

A. 49.4%
B. 24.7%
C. 30.85%
D. 25.6%
Answer» B. 24.7%
discuss
81.

According to MGD report what is the criterion for extreme poverty?

A. $ 1 aday
B. Less than $1.50
C. Less than $ 1.25
D. Less than $ a day
Answer» C. Less than $ 1.25
discuss
82.

What is the deadline to achieve MGD?

A. 2020
B. 2040
C. 2025
D. 2015
Answer» D. 2015
discuss
83.

Which was the venue for millennium summit?

A. Paris
B. New York
C. London
D. Rio D Janero
Answer» B. New York
discuss
84.

Who was UN Secy- General during declarationof MGD?

A. Kurt Waldheim
B. Ban Ki Moon
C. Boutros Boutros Ghale
D. Kofi Annan
Answer» D. Kofi Annan
discuss
85.

Which of the following diseases are covered under MDG?

A. HIV/AIDS
B. Malaria
C. Tuberculosis
D. All
Answer» D. All
discuss
86.

Which of the following areas are emphasized by MGD?

A. Human capital
B. Infrastructure
C. Human rights
D. All
Answer» D. All
discuss
87.

Infrastructure related objectives of MDG does not include

A. Access to safe drinking water
B. Energy
C. Modern information/communication technology
D. Development of road infrastructure
Answer» D. Development of road infrastructure
discuss
88.

Which among the following method of environmental valuation involves finding a link between environmental change and a production condition for some marketed goods

A. Travel cost Method
B. Contingent Valuation Method
C. Hedonic Pricing
D. Production function
Answer» D. Production function
discuss
89.

Which of the following is correct, if we only achieve two out of three pillars of Sustainable Development?

A. Social+Economic Sustainability= Equitable
B. Social+Environmental Sustainability= Bearable
C. Economic+ Environmental Sustainability= Viable
D. All of the above
Answer» D. All of the above
discuss
90.

When was the term Sustainable Development came into existence?

A. 1987
B. 1980
C. 1978
D. 1992
Answer» B. 1980
discuss
91.

An impact assessment whether health impact assessment, environmental,social,environmental technology assessment should be

A. Retrospective
B. Prospective
C. Subjective
D. Apathetic
Answer» C. Subjective
discuss
92.

Which of the following items are included within the definition of Total Economic Value

A. Existence Value
B. Use Value
C. Option Value
D. Correction Value
Answer» A. Existence Value
discuss
93.

Which of the following is often referred to as the hedonic price method for valuing environmental assets?

A. Using option value to estimate the value of an environmental asset
B. Using travel cost to estimate the value of an environmental asset
C. Using linkages between variationin house prices and geographical proximityto an environmental asset
D. Using willingness to pay to value an environmental asset
Answer» C. Using linkages between variationin house prices and geographical proximityto an environmental asset
discuss
94.

The name given to a tax which makes the firm pay for all the pollution damage it creates with each extra unit of output

A. Coase theorm
B. Option value
C. Existence value
D. Piguvion tax
Answer» D. Piguvion tax
discuss
95.

Which of the following is/are not an objective (s) of sustainable development?

A. Continue to implement the family planning program
B. Maintain a dynamic balance of arable land (not less than 123 million hectares) and implement an agricultural development strategy
C. Maintain a dynamic balance of water resources by reducing water consumption for every unit of gross development product growth and agricultural value added
D. To bring about a gradual and sometime catastrophic transformation of environment
Answer» D. To bring about a gradual and sometime catastrophic transformation of environment
discuss
96.

Consider the following statement (s) related to the parameters of sustainable development refer to the guiding principles.
I. Help in understanding the concept of sustainable development
II. Point the problems associated with it
III. Help to take active policy measures

A. Both I & II
B. Both II & III
C. Both I & IV
D. I,II &III
Answer» D. I,II &III
discuss
97.

Social, economical and ecological equity is the necessary condition for achieving

A. Social development
B. Economical development
C. Sustainable development
D. Ecological development
Answer» C. Sustainable development
discuss
98.

The maximum number of individuals that can be supported by a given environment is called

A. Biotic potential
B. Carrying capacity
C. Environmental resistance
D. Population size
Answer» B. Carrying capacity
discuss
99.

pporting capacity and asssdd9 25. Supporting capacity and assimilative capacity are the components of

A. Carrying capacity
B. Holding capacity
C. Containing capacity
D. Capturing capacity
Answer» A. Carrying capacity
discuss
100.

3 Meeting the needs of the present without compromising the ability of future generation to meet their own need’ is given by:

A. Bruntland
B. Mahatma Gandhi
C. Mathaaii
D. Sunderlal Bahugana
Answer» A. Bruntland
discuss

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