360+ Environmental Economics Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Arts in Economics (BA Economics) .

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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

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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

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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

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5.	Market failure occurs when market do not maximize
A.	Production
B.	Utility
C.	Welfare
D.	Resource utilization
Answer» C. Welfare

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6.	Environment good is
A.	Car
B.	House
C.	Air, water, sunlight
D.	Wheat
Answer» C. Air, water, sunlight

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7.	Environmental Economics is
A.	Social Science
B.	Positive & normative science
C.	Micro economics
D.	Macro economics
Answer» B. Positive & normative science

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8.	Public goods are
A.	Non-excludables
B.	Public bads
C.	Free riders
D.	Externalities
Answer» A. Non-excludables

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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

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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

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11.	Which one is not the cause of market failure
A.	Externalities
B.	Imperfect market
C.	Indivisibilities
D.	Pareto optimality
Answer» D. Pareto optimality

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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23.	Public goods are those goods for which consumption is
A.	Rival
B.	Regulated
C.	Non-rival
D.	Unregulated
Answer» C. Non-rival

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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41.	In which stage of demographic transition is the population growth rate highest?
A.	First
B.	Second
C.	Third
D.	Fourth
Answer» B. Second

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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

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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

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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

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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

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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

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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

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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.

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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

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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

360+ Environmental Economics Solved MCQs

The Tragedy of the Commons is a theory put forth by

Environmental economics attempts to study the inter relationship between

Ecology deals with the household of nature while economics deals with

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

Market failure occurs when market do not maximize

Environment good is

Environmental Economics is

Public goods are

There is rivalry and exclusiveness in the use of

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

Which one is not the cause of market failure

The Paretian condition for a public good is that

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

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

Which is not a measure for solution of market failure

Which is not amomg the three types of Property Rights

What is the Tragedy of the Common

In case of negative externality, the social marginal cost will

In case of positive externality social marginal cost

Common property

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

An example of a public good is

Public goods are those goods for which consumption is

Non-rivalry is a feature of

Non-excludability is a feature of

Pure private goods are those for which consumption is

When consumption is rival and excludable, the product is

A good or service or a resource is non-rival if

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

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

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

A public good is

A private good is

A common resource is

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

A free rider is a person who

Which of the following is an example of a public good

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

A negative externality affects market efficiency in a manner similar to

Which of the following is an example of a common resource

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

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

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.

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

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

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

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

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

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

Which of the following is associated with poverty estimation ?

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.

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

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

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