1.

Reflects the local economy by accounting for only those goods and services bought and sold locally

A. GPI
B. GPD
C. GPA
D. GNP
E. HDI

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Bloom's Level: 1. Remember
Chapter: 15
Section: 15.03
Topic: Economics

2. __________ applies ecological ideas of system functions and recycling definition of resources.

A. Ecological economics
B. Neoclassical economics
C. Ecological services
D. Classical economics
E. Environmental economics

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Bloom's Level: 1. Remember
Chapter: 15
Section: 15.03
Topic: Waste

3. This form of economics assumes that natural resources are finite (such as oil, gold, and water) and exist in fixed amounts.
A farmer’s marker is a good example.

A. Classical economics
B. Ecological economics
C. Neoclassical economics
D. Capital
E. Environmental economics

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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.03
Topic: Economics

4. _________ is an example of green infrastructure that improve air quality, conserve energy, reduce storm water runoff,
reduce noise, and helps reduce urban heat island effects.

A. Mixed-use planning
B. Green spaces

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C. Green roofs
D. Smart growth
E. Recycling programs

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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.02
Topic: Sustainable Development

5. In 1950, only ____ percent of the world's population lived in cities.

A. 16
B. 22
C. 31
D. 38
E. 43

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Bloom's Level: 1. Remember
Chapter: 15
Section: 15.01
Topic: Urbanization

6. In 2000, what continent had the highest percentage of people living in urban areas?

A. North America
B. Europe
C. Asia
D. South America
E. Africa

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Bloom's Level: 1. Remember
Chapter: 15
Section: 15.01
Topic: Urbanization

7. Ecological economics is different from the other economic theories because it recognizes the

A. scarcity of natural capital.

B. recycling of ecological processes and the scarcity of manufactured capital.
C. abundance of natural capital.
D. fragility of the human economy and power of ecological systems.
E. human economy as one part of a dynamic world system.

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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.03
Topic: Economics

8. Natural capital is that which is created by

A. industrial processes.
B. human labor.
C. natural Earth processes.
D. animal labor.

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Bloom's Level: 2. Understand

15-2
 Chapter: 15
Section: 15.03
Topic: Economics

9. Renewable resources are those that

A. will not be exhausted.

B. will always renew themselves unless we destroy them.
C. can be renewed through intensive investments of capital and labor.
D. are intangible and inexhaustible.
E. are intangible and exhaustible.

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Bloom's Level: 1. Remember
Chapter: 15
Section: 15.03
Topic: Resources

10. An example of an intangible resource, or one that is difficult to place a monetary value on, is

A. solar energy.
B. satisfaction.
C. human labor.
D. capital.
E. extinct species.

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Bloom's Level: 3. Apply
Chapter: 15
Section: 15.03
Topic: Resources

Use the following scenario to answer the next two questions. A large lending institution is evaluating the long-term pros
and cons of building a hydroelectric dam in the Amazon rainforest. First, the lending institution is identifying the
appropriate factors and then quantifying them. The factors include, but are not limited to, the direct expenses of building
the dam, the lost opportunities from placing a dam on the river, and the profit from the dam. Also included is an analysis
of who will be affected by the dam.
Chapter: 15

11. What is the name of the process the lending institution is going through?

A. a long-term analysis
B. a supply-demand analysis
C. a tangible-intangible cost analysis
D. a benefit-need ratio analysis
E. a cost-benefit analysis

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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.04
Topic: Economics

12. Which of the following is not a major criticism of this type of analysis?

A. People are willing to answer questions about how much they would spend to save the Amazon rainforest.
B. The quantification process compares the value of the lives of indigenous people's lives with the lives of people in the
city who would be receiving the electricity.
C. The focus of this type of analysis would be mainly on the hydroelectric project rather than alternatives.
D. Monetary values are placed on intangible things like the river running freely.
E. These are all criticisms of this type of analysis.

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 Accessibility: Keyboard Navigation
Bloom's Level: 2. Understand
Chapter: 15
Section: 15.04
Topic: Economics

13. When we purchase a product, the price we pay directly reflects the _____ cost of producing it. If the manufacture of the
product degrades the quality of air or water, then the costs of this pollution are termed _____ costs.

A. incidental; external
B. incidental; indirect
C. indirect; incidental
D. external; internal
E. internal; external

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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.04
Topic: Economics

14. When a factory pollutes a river, the costs and losses that affect people downstream would be called

A. indirect costs.
B. external costs.
C. incidental costs.
D. internal costs.
E. social costs.

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Bloom's Level: 3. Apply
Chapter: 15
Section: 15.04
Topic: Economics

15. Businesses are now willing to become "green" because

A. it improves their public image.

B. it saves money.
C. doing so is expensive but makes good advertising.
D. doing so improves their image and saves money in the end.
E. they need to obey laws and comply with government regulations.

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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.06
Topic: Economics

16. Many businesses are exploring and adopting the "design for the environment." Which of the following is not
associated with this approach?

A. Improve public relations about the business' environmental policies.

B. The products of a process are resources for other processes.
C. Work within the limits of the current incoming amounts of solar energy.
D. Include an emphasis on the maintenance of cultural and biological diversity.

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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.06
Topic: Economics

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17. Environmental protection has been proven to __________ the number of available jobs because __________.

A. decrease; it limits the use of nonrenewable resources (as in the case of the logging industry)
B. increase; labor is usually substituted for natural resources (as in the case of recycling)
C. stabilize; the use of nonrenewable resources is stabilized and jobs are scarce anyway
D. decrease; it negatively affects economic growth
E. stabilize; it limits the use of nonrenewable resources (as in the case of the logging industry)

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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.06
Topic: Economics

18. Urbanization began to grow especially quickly after the

A. development of agriculture.
B. beginning of the twentieth century.
C. invention of commerce and religion.
D. industrial revolution.
E. invention of record keeping.

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Bloom's Level: 1. Remember
Chapter: 15
Section: 15.01
Topic: Urbanization

19. Which of the following is a push factor for urban growth?

A. jobs in rural manufacturing

B. unemployment in farming communities
C. better access to education at big universities
D. high unemployment in cities
E. opportunities for specialization in an occupation

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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.01
Topic: Urbanization

20. Which would be an example of sustainable development?

A. Current use of fossil fuels in the U.S.

B. Heap-leach extraction of gold.
C. Harvest of food species to the point of extinction.
D. Development of brownfields in urban areas.
E. Suburban development programs.

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Bloom's Level: 3. Apply
Chapter: 15
Section: 15.03
Topic: Sustainable Development

15-5
21. Which is an example of a pull factor for an urban area?

A. unemployment in rural areas

B. the availability of arts and cultural activities
C. heavy traffic on city streets
D. the lack of clean drinking water in rural areas

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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.01
Topic: Urbanization

22. Slums are usually dwelling places that are

A. illegal and built by squatters.

B. legal but have inadequate living conditions.
C. small but up to city code.
D. condemned by the city but illegally occupied.
E. on undeveloped lands in the outskirts of a city.

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Bloom's Level: 1. Remember
Chapter: 15
Section: 15.01
Topic: Urbanization

23. In many U.S. cities, poor, undereducated, minority, and other less powerful groups are often concentrated

A. in urban centers.
B. at city margins.
C. outside of the city entirely.
D. in a ring of satellite settlements around a city.

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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.01
Topic: Urbanization

24. Which is not a negative consequence of urban sprawl?

A. increased traffic congestion

B. abandonment of city centers
C. inefficient use of land
D. increased lot and land areas for homes

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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.02
Topic: Urbanization

25. Traditional suburban development does not

A. consist of only house lots and streets.

B. typically consist of identical parcels of land without open space.
C. facilitate social interactions among neighbors.
D. consume agricultural land and wildlife habitat.

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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.02
Topic: Urbanization

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26. The emphasis in the traditional U.S. suburban development is on ____. This is reflected by the _____.

A. flexible housing; variety of living arrangements supported by most suburban zoning ordinances
B. walking; pedestrian-friendly streets
C. social interactions; pedestrian-friendly streets and parks
D. ease of shopping and running errands; nearby availability of goods and services
E. the automobile; prominent streets, garages, and driveways

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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.02
Topic: Urbanization

27. Which would not be a goal of smart growth?

A. reduction of noise, air and water pollution

B. increased access to artistic and cultural opportunities
C. reduction of substandard housing
D. improved communication among members of the community
E. housing areas remote from work and shopping areas

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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.02
Topic: Urbanization

28. According to the principle of new urbanism, what is the ideal size of a city?

A. less than 15,000 people

B. 15,000-30,000
C. 30,000-50,000
D. 50,000-100,000
E. up to 150,000

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Bloom's Level: 1. Remember
Chapter: 15
Section: 15.02
Topic: Urbanization

29. The idea of a steady-state economy was developed by

A. Thomas Malthus
B. John Stuart Mill
C. Adam Smith
D. Henry David Thoreau
E. Karl Marx

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Bloom's Level: 1. Remember
Chapter: 15
Section: 15.03
Topic: Economics

15-7
30. Mass transportation in urban areas is one example of how cities have negative impacts on the environment.

FALSE
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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.02
Topic: Urbanization

31. Suburbs are known for the presence of artistic and cultural opportunities.

FALSE
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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.02
Topic: Urbanization

32. A major criticism of the ‘limits to growth' model is that it doesn't fully account for technological innovations.

TRUE
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Bloom's Level: 1. Remember
Chapter: 15
Section: 15.03
Topic: Economics
33. The dilemma of public property use presented by Garret Hardin is also called the "free rider problem."

TRUE
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Bloom's Level: 1. Remember
Chapter: 15
Section: 15.03
Topic: Resources
34. The estimated annual value of soil formation by natural systems is more than 10 trillion dollars.

TRUE
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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.03
Topic: Economics

35. International trade of goods internalizes costs.

FALSE
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Bloom's Level: 1. Remember
Chapter: 15
Section: 15.04
Topic: Economics

15-8
36. A megacity is defined as having more than 50 million residents.

FALSE
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Bloom's Level: 1. Remember
Chapter: 15
Section: 15.01
Topic: Urbanization
37. Taking advantage of utilizing existing resources and infrastructure to plan communities is described as

A. smart growth.
B. sustainable growth.
C. urban sprawl.
D. brownfield development.

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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.03
Topic: Urbanization

38. An open access system will lead to

A. smart growth.
B. sustainable development.
C. tragedy of the commons.
D. urban sprawl.

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Bloom's Level: 2. Understand
Chapter: 15
Section: 15.03
Topic: Resources

39. Cap-and-trade is a system where market forces help drive sustainability.

TRUE
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Bloom's Level: 1. Remember
Chapter: 15
Section: 15.05
Topic: Economics

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 Category # of Questions
Accessibility: Keyboard Navigation 39
Bloom's Level: 1. Remember 14
Bloom's Level: 2. Understand 22
Bloom's Level: 3. Apply 3
Chapter: 15 40
Section: 15.01 8
Section: 15.02 8
Section: 15.03 14
Section: 15.04 5
Section: 15.05 1
Section: 15.06 3
Topic: Economics 16
Topic: Resources 4
Topic: Sustainable Development 2
Topic: Urbanization 16
Topic: Waste 1

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