Introduction to Environmental Economics MCQ Questions

Please go through Introduction to Environmental Economics MCQ with Answers for Environment Economics provided below. Students should have strong knowledge about the Introduction to Environmental Economics as in various competition exams, MCQ questions are asked from this topic. We have provided below the biggest collection of Introduction to Environmental Economics MCQ with Answers. These Environmental Economics MCQ and objective questions will improve your performance in exams and help you to get good scores.

Multiple Choice Questions for Introduction to Environmental Economics with Answers

Question. Environment good is
(a) Car
(b) House
(c) Air, water, sunlight
(d) Wheat

Question. 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

Question. Public goods are those goods for which consumption is
(a) Rival
(b) Regulated
(c) Non-rival
(d) Unregulated

Question. 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

Question. 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

Question. 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

Question. Environmental Economics is
(a) Social Science
(b) Positive & normative science
(c) Micro economics
(d) Macro economics

Question. A private good is
(a) Rival but not excludable
(b) Not rival but excludable
(c) Both rival but excludable
(d) Neither rival nor excludable

Question. A common resource is
(a) Not rival but excludable
(b) Both rival and excludable
(c) Rival but not excludable
(d) Neither rival nor excludable

Question. Public goods are
(a) Non-excludables
(b) Public bads
(c) Free riders
(d) Externalities

Question. Which one is not the cause of market failure
(a) Externalities
(b) Imperfect market
(c) Indivisibilities
(d) Pareto optimality

Question. 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

Question. 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

Question. 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

Question. 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

Question. The Tragedy of the Commons is a theory put forth by
(a) Garrelt-Hardin
(b) Adam Smith
(c) W.C Clark
(d) Samuelson

Question. 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

Question. 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

Question. 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

Question. 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

Question. 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

Question. 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

Question. 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

Question. 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

Question. When consumption is rival and excludable, the product is
(a) Private good
(b) Service not a good
(c) Mixed good
(d) Public good

Question. Market failure occurs when market do not maximize
(a) Production
(b) Utility
(c) Welfare
(d) Resource utilization

Question. 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

Question. 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

Question. 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

Question. Non-rivalry is a feature of
(a) Public good
(b) Goods but not service
(c) Excludable good
(d) All non-excludable goods

Question. 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

Question. A public good is
(a) Neither rival nor excludable
(b) Rival but not excludable
(c) Both rival but excludable
(d) Not rival but excludable

Question. 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

Question. An example of a public good is
(a) a loaf of bread
(b) national defense service
(c) a ford truck
(d) a home computer

Question. 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

Question. A positive externality affects market efficiency in a manner similar to a
(a) Rival good
(b) Public good
(c) Private good
(d) Common resource

Question. There is rivalry and exclusiveness in the use of
(a) Public good
(b) Private good
(c) Public bad
(d) None of them

Question. If A imposed externality on B and B has not imposed externality on A, thent the externality is
(a) Unidimensional
(b) Bidimensional
(c) Multidimensional
(d) Complex dimensional

Question. 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

Question. 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

Fill in the blanks :

Question. ______________________is a basic for environmental analysis. 

Question. One of the most peculiar features of a common property resource is it lacks _____________ . 

Question. Market failure occurs when markets do not ____________welfare. 

Question. Public goods are goods which have public usage and they are ___________ in consumption. 

Question. ________________resource is a mid way between pure public and private goods. 

Question. The term environment is derived from French word _______________ . 

Question. Environment acts as a_______ for all the waste products that are the result of the process of production and consumption. 

Question. Environmental problem are basically man-made and ________________has solution for them. 

Question. ______________create difference between personal expenses and social expenses . 

Question. Environment goods are _____________goods . 

Question. Environment acts as a ____________in the process of production and finally acts as a _______________ . 

Question. The Tragedy of Commons has its genesis in olden cattle grazing pasture in _______________ . 

Question. Public bads are ______________ .

Question. Common property resources are collectively owned by ______________________ . 

Question. Environment pollution is an ________________problem. 

Question. Environmental economics is a _____________as well as ________________science. 

Question. Ecology is the scientific study of the relationship between _____________and their environment . 

Question. Environment is an __________________concept . 

Question. The term ecology was introduced by German biologist ______________ . 

Question. Market in environment good is non-existent, incomplete or ___________ .