Questionnaire reviewVersion en ligne Environment risks par Laura Sanz 1 In a total free-market system, commercial enterprises maximize profits by paying only ______costs (private costs) and ignoring_____. a indirect; direct costs b intangible; externalities c direct; externalities d mandatory; supply and demand 2 What is false with respect to "public goods": a Are the goods provided by the public sector. b Usually generate the "free rider" problem. c The market fails and provides nothing or less than the optimal social quantity of the good. d Public goods are non rival in consumption and non excludab 3 a town with a common grazing area (a "commons"), the cost of adding more cattle - in terms of environmental degradation of the commons -- is borne by: a the mayor b individual cattle owners c residents of the nearest neighbouring town d the community as a whole 4 About the EKC hypothesis, which statement is false: a Empirical evidence has demonstrate that EKC hypothesis holds for local, regional and global environmental impacts. b States that as per capita incomes grow, environmental impacts rise, hit a maximum, and then decline. c Among other things states that after Y*, environmental quality rises because economy moves from manufacturing to service sector or high-tech industries. d The EKC hypothesis is not taking into consideration the impact of globalization that has separated location of consumption from location of production and pollution. 5 The Brundtland Commission in 1987 defined SD as "development that meets the needs of present generations without compromising the ability of future generations to meet their own needs." From the comparison made in the reading with other definitions, like the one of Ger Asheim, it may be concluded that: a SO is principally an efficiency, rather than an equity issue. b SD is principally an equity, rather than an efficiency issue. c There is a potential complementarity between promoting efficiency and equity. d b and c are correct.
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