Question

QUESTION 20

1. In single rotation forestry, marginal cost of delay captures:

   	a.	The forgone ecological benefit of the forest.
   	b.	The foregone interest rate from the financial capital.
   	c.	The growth rate of timber.
   	d.	All of the above.

2 points   

QUESTION 21

1. In the Schaefer fishery model, the maximum sustainable yield occurs when

   	a.	Fish is harvested at the stock level at which the growth rate of the stock is the minimum
   	b.	Fish is harvested at the stock level at which marginal cost equals marginal benefit
   	c.	Fish is harvested at the stock level at which the growth rate of the stock is the maximum
   	d.	Fish harvest is equal to the natural equilibrium

2 points   

QUESTION 22

1. Economically efficient sustainable yield in fishing implies that ________________.

   	a.	The catch must be maximum at any cost.
   	b.	The catch must be zero.
   	c.	The catch must be sustainable and must generate maximum profit.
   	d.	Each fisherman catches the number of fish for which he/she has a license.

2 points   

QUESTION 23

1. An efficient quota system in fishing has all of the following characteristics except _____________.

   	a.	The quota entitles the holder to catch a specified share of the total authorized catch of a specified type of fish.
   	b.	The catch authorized by the ITQ held by all fishermen should be equal to the efficient catch for the fishery.
   	c.	The government should set the appropriate price signals about the value of the fishery.
   	d.	The quota should be freely transferable among fishermen.

2 points   

QUESTION 24

1. Which of the following factor is not a major source of disagreement in coordinating and planning global effort to tackle global climate change:

   	a.	Intention of free riding.
   	b.	Uncertainty over costs and benefits of mitigation
   	c.	None of the above.
   	d.	Choice of discount rate.

2 points   

QUESTION 25

1. The Kyoto Protocol authorized cooperative implementation mechanisms. Which of the following was not one of the authorized implementation mechanisms?

   	a.	Joint implementation.
   	b.	Clean Development Mechanism.
   	c.	Emissions trading.
   	d.	Climate Engineering

2 points   

QUESTION 26

1. Unlike to an open ended CVM studies, referendum type elicitation format CVM studies might suffer with

   	a.	Starting point bias.
   	b.	Hypothetical bias.
   	c.	Strategic bias.
   	d.	All of the above

2 points   

QUESTION 27

1. Investing net benefits obtained from exhaustible natural resources into roads and other infrastructures is an example of

   	a.	All of the above.
   	b.	Strong sustainability
   	c.	Environmental sustainability
   	d.	Weak sustainability

2 points   

QUESTION 28

1. The value of a “statistical life” can be used to

   	a.	measure a group’s willingness to accept risk.
   	b.	all of the above.
   	c.	put a price on a non-market good.
   	d.	measure the costs of increasing occupational risk.
   	e.	measure the benefits of reducing occupational risk.

2 points   

QUESTION 29

1. Suppose Michigan’s NOX abatement standard for existing (E) sources is 4 units and the EPA's standard for new (N) sources is 10 units and that MACE = 1.8AE and MACN = 1.2AN. To meet the same combined abatement level of 14 but in a cost-effective manner, the standards for each should be

   	a.	AE = 5.6; AN = 8.4
   	b.	none of the above
   	c.	AE = 7; AN = 7
   	d.	AE = 4.8; AN = 7.2

2 points   

QUESTION 30

1. Current ecological benefits of open access forestry are examples of

   	a.	Use values
   	b.	Option values
   	c.	Existence values
   	d.	Nonuse values

Answer 1

20.

(b)The foregone interest rate from the financial capital

Reason: Marginal cost means additional cost, single rotation forestry foregone interest rate from the financial capital.

21.

(c)Fish is harvested at the stock level at which the growth rate of the stock is the maximum

Reason: Schaefer fishery model, the maximum sustainable yield occurs when Fish is harvested at the stock level at which the growth rate of the stock is the maximum.

22.

(c)The catch must be sustainable and must generate maximum profit

Reason: Economically efficient sustainable yield in fishing implies that catch must be sustainable and must generate maximum profit.

23.

(c)The government should set the appropriate price signals about the value of the fishery

Reason: An efficient quota system in fishing has all of the following characteristics except government should set the appropriate price signals about the value of the fishery.