Environmental Management

Final Exam Questions

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 Environmental Management
Final Exam Questions
Cou
Environmental Management explores the principles, strategies, and tools used to

address environmental challenges in various sectors. Emphasizing sustainability, the

course covers topics such as environmental policies, regulatory frameworks, resource

conservation, pollution control, and environmental impact assessment. Students learn to

develop and implement management plans that balance economic development with

ecological protection, analyze case studies, and evaluate the effectiveness of current

practices. The course prepares students to make informed decisions for responsible

environmental stewardship in both public and private organizations.

Recommended Textbook
Environmental Economics and Management Theory Policy and Applications 6th Edition by Scot

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21 Chapters
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Page 2
 Chapter 1: The Role of Economics in Environmental

Management
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Sample Questions
Q1) Briefly explain why China's environment has declined so severely, and find an article
or two from the popular press that updates the progress in reversing the trend.
Answer: Correct responses should address China's rapid economic growth rate, as
discussed in the boxed Application, its large size, which adds to total abatement costs,
and the fact that China's clean-up efforts are focused mainly on large urban centers,
which leaves rural communities and smaller cities facing serious environmental decline.
Media coverage of China's economic growth and environmental pollution problems has
been extensive, so students should find sufficient evidence, at least anecdotally, on
current efforts and progress to date.

Q2) The discipline concerned with the resource flow from economic activity back to
nature is known as natural resource economics.
A)True
B)False
Answer: False

Q3) Runoff from urban streets is an example of nonpoint source pollution.

A)True
B)False
Answer: True

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Page 3
 Chapter 2: Modeling the Market Process: a Review of the

Basics
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Sample Questions
Q1) If a firm is maximizing profit, it produces at the point where
A) MR > MC
B) MR = MC
C) TR > TC
D) TR = TC
Answer: B

Q2) If the demand for recycled plastic is specified as Q_D = 100 - 2.5P, the
slope of demand, as conventionally graphed, is
A) -2.5
B) -0.4
C) +100
D) none of the above
Answer: B

Q3) Market supply for a private good is found by

A) vertically summing all market prices for a given quantity
B) horizontally summing the quantity decisions of producers at each and every price
C) adding the price-quantity pairs for all units sold
D) none of the above
Answer: B

Page 4
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 Chapter 3: Modeling Market Failure
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Sample Questions
Q1) The study conducted by Greenpeace China of the Pearl River Delta (PRD) region
indicates that progress is being made to improve water quality.
A)True
B)False
Answer: False

Q2) If the third-party effects of a good generate benefits to a third party, it is a positive
externality.
A)True
B)False
Answer: True

Q3) According to these relationships, the competitive output level arises where
A) Q_C = 25
B) Q_C = 20
C) Q_C = 40
D) none of the above
Answer: C

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Page 5
 Chapter 4: Conventional Solutions to Environmental

Problems: Command-And-Control Approach

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Sample Questions
Q1) Among the reasons that may explain why abatement standards are not set
efficiently is imperfect information.
A)True
B)False

Q2) Standards are the fundamental basis of most environmental policies.

A)True
B)False

Q3) If an environmental standard is set at a level where the associated marginal

abatement cost (MAC) is equal to the marginal social benefit (MSB), it is considered an
allocatively efficient standard.
A)True
B)False

Q4) To determine the marginal social cost (MSC) of abatement, we find the sum of
A) MPC + MAC
B) \(\Sigma\)MAC + MCE
C) MAC + \(\Sigma\)MCE
D) MAC + \(\Sigma\)MEC

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Page 6
Chapter 5: Economic Solutions to Environmental Problems:

the Market Approach

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Sample Questions
Q1) Suppose that for some abatement equipment market, the MSB = 502 - 1.2Q, and MPB
= 302 - 0.8Q, then the Pigouvian subsidy must equal 804 - 2Q at the efficient output level
to achieve the efficient output level.
A)True
B)False

Q2) Major categories of market-based instruments include

A) pollution charges
B) subsidies
C) deposit/refund systems
D) pollution permit trading systems
E) all of the above

Q3) A pollution charge follows the "polluter-pays principle."

A)True
B)False

Q4) Suppose that for some abatement equipment market, the MSB = 525 - 1.2Q and MPB
= 325 - 0.8Q, then the Pigouvian subsidy for that market must equal 200 - 0.4Q at
Q_E to achieve an efficient outcome.
A)True
B)False
Page 7

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 Chapter 6: Environmental Risk Analysis
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Sample Questions
Q1) A dose-response function
A) identifies the threshold level of exposure by its vertical intercept
B) always graphs as a linear function
C) is an important element of the risk management process
D) all of the above
E) none of the above

Q2) In an ecological risk assessment, the step in which the ecological entity that is
potentially at risk is identified is called the analysis phase.
A)True
B)False

Q3) All dose-response functions are

A) linear relationships
B) nonlinear relationships
C) vertical relationship
D) horizontal relationships
E) none of the above

Q4) Risk analysis is an important element of environmental policy development.

A)True
B)False

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Page 8
 Chapter 7: Assessing Benefits for Environmental Decision

Making
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Sample Questions
Q1) If an individual enjoys swimming in the ocean, the ocean generates existence value
to the individual.
A)True
B)False

Q2) The number of pre- and post-policy visitors, V₁ and V₂, (in
thousands) is ____ and _____, respectively.
A) 2,100; 3000
B) 44,100; 90,000
C) 61.6; 79.6
D) none of the above

Q3) The approach that estimates benefits according to a technical relationship between
a resource and a user of the resource is called the behavioral linkage approach.
A)True
B)False

Q4) The contingent valuation method is so called because it is contingent upon the
hypothetical market that serves as the context for the survey.
A)True
B)False

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 Chapter 8: Assessing Costs for Environmental Decision

Making
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Sample Questions
Q1) When abatement expenditures are estimated in accordance with the input provided
directly from polluting sources, that estimation method is known as the direct approach.
A)True
B)False

Q2) The marginal social cost (MSC) function is the sum of the following:
A) market-level marginal abatement cost (MAC_mkt) + marginal cost of
enforcement (MCE)
B) marginal abatement cost (MAC) + marginal external cost (MEC)
C) marginal abatement cost (MAC) + total social cost (TSC)
D) market-level marginal abatement cost (MAC_mkt) + marginal external
cost (MEC)

Q3) Labor expenditures associated with carrying out an abatement process are
considered to be part of
A) capital costs
B) fixed costs
C) operating costs
D) implicit costs
E) none of the above

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Page 10
Chapter 9: Benefit-Cost Analysis in Environmental Decision

Making
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Sample Questions
Q1) When benefit-cost analysis is used to facilitate U.S. public policy decisions,
A) the discount rate is selected by the individual policy maker
B) no adjustment can be made for inflation, since the inflation rate is not known in
advance
C) the discount rate used should reflect the social opportunity cost of funds
D) only incremental costs are adjusted for time differences

Q2) In order for a policy option to achieve allocative efficiency,

A) PVNB must be maximized
B) PVB must be minimized
C) PVC must be minimized
D) (PVB - PVC) must be minimized

Q3) Deflating refers to

A) discounting a future value into its present value by accounting for the opportunity
cost of money
B) converting a real value into its associated nominal value
C) using the discount rate to correct for environmental benefits or costs accruing in
some future time period
D) none of the above

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Page 11
 Chapter 10: Defining Air Quality: the Standard-Setting

Process
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Sample Questions
Q1) The NAAQS are established using benefit-cost analysis.
A)True
B)False

Q2) According to the EPA's first prospective study of the Clean Air Act Amendments
(CAAA) of 1990,
A) these amendments do not pass the feasibility test
B) the estimated present value of benefits outweigh the present value of costs
C) the CAAA achieve allocative efficiency
D) the present value of net benefits associated with these amendments are negative

Q3) In the United States, the air quality standards used to control criteria pollutants
A) identify the maximum allowable concentrations of each pollutant
B) are set to achieve an efficient abatement level using benefit-cost analysis
C) are known as the NESHAP
D) are achieved by all AQCRs in the nation

Q4) Contaminants such as pollen and salt spray are known as anthropogenic pollutants.
A)True
B)False

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Page 12
 Chapter 11: Improving Air Quality: Controlling Mobile

Sources
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Sample Questions
Q1) An example of a clean alternative fuel is
A) hydrogen
B) methanol
C) E(85) ethanol
D) biodiesel
E) all of the above

Q2) Uniform standards

A) are not relevant to mobile source controls
B) refer to standards that remain the same over time
C) have been shown to be more costly than a two-tiered standard on motor vehicles
D) achieve an allocatively efficient outcome

Q3) According to a study conducted by the National Academy of Sciences, a uniform

standard imposed on motor vehicles would be more cost-effective than a two-tiered
standard.
A)True
B)False

Q4) Ethanol (E85) is a blend of 85 percent ethanol and 15 percent gasoline.

A)True
B)False
Page 13

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 Chapter 12: Improving Air Quality: Controlling Stationary

Sources
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Sample Questions
Q1) Overall, empirical studies fail to support the claim that command-and-control policy
is more costly to implement than more flexible approaches.
A)True
B)False

Q2) RECLAIM is a California trading program that used trading credits in a regional
market for sulfur oxide and nitrogen oxide.
A)True
B)False

Q3) Because of the dual-control approach, emissions limits tend to be more stringent for
newer facilities, creating a bias against building newer, and hence cleaner, facilities.
A)True
B)False

Q4) Relative to mobile sources, stationary sources are bigger emitters of sulfur oxides.
A)True
B)False

Q5) Explain why the current abatement levels for the two sources do not achieve cost
effectiveness.

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14 click on the resource link above.
 Chapter 13: Global Air Quality: Policies for Ozone Depletion

and Climate Change

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Sample Questions
Q1) According to the Regulatory Impact Analysis (RIA) of the phaseout plan for
ozone-depleting substances, the associated costs exceed the expected benefits.
A)True
B)False

Q2) The "greenhouse effect" is a natural phenomenon.

A)True
B)False

Q3) All of the following are primary uses of CFCs, EXCEPT

A) refrigeration
B) aerosol propellants
C) insulation
D) fuel octane boosters

Q4) The U.S. federal government has enacted a nationwide carbon tax to reduce carbon
dioxide emissions.
A)True
B)False

Q5) Find the dollar value of a per unit gasoline tax that would achieve the efficient
solution, and calculate the resulting tax revenues generated to government.
Page 15
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 Chapter 14: Defining Water Quality: the Standard-Setting

Process
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Sample Questions
Q1) Mercury is the leading pollutant for U.S. bays and estuaries.
A)True
B)False

Q2) According to the benefit-cost analysis of the Clean Water Act presented in the text,
A) TSB outweigh TSC
B) MSB is equivalent to MSC, suggesting an efficient level of abatement
C) TSC are greater than TSB
D) MSC is larger than the MSB, implying controls are too stringent

Q3) Sources of water runoff include

A) farms
B) highways
C) publicly owned treatment works
D) all of the above
E) (a) and (b) only

Q4) Water quality policy recognizes two major categories of water resources -- surface
water and groundwater.
A)True
B)False

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 Chapter 15: Improving Water Quality: Controlling Point and

Nonpoint Sources
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Sample Questions
Q1) The federal grant program may have created an incentive for over-building of
POTWs and a disincentive for cost-minimization.
A)True
B)False

Q2) The setting of effluent limitations

A) is based primarily on technological capability
B) follows benefit-cost analysis
C) achieves an efficient solution
D) all of the above

Q3) In a tradeable effluent permit market,

A) effluent allowances may be used, but not effluent credits
B) high-cost abaters will buy permits as long as the price is lower than their MAC
C) a permit price should be established where all polluters' MACs are equal
D) all of the above
E) (b) and (c) only

Q4) In the United States, tradeable effluent markets are far less common than they are in
other countries.
A)True
B)False
Page 17

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 Chapter 16: Protecting Safe Drinking Water
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Sample Questions
Q1) The maximum contaminant level goals (MCLGs)
A) define the pollutant level at which no known or expected health effects arise, allowing
for a margin of safety
B) are enforceable standards
C) are unrelated to the maximum contaminant levels (MCLs)
D) all of the above

Q2) Based on your findings, show that the new lead standard passed the feasibility test
for this three-year period.
Sources: U.S. Federal Register 56 (110) (June 7, 1991); U.S. EPA, Office of Water, Office of
Ground Water and Drinking Water (May 1991).

Q3) The Safe Drinking Water Act Amendments of 1996

A) govern U.S. water quality today
B) established the Drinking Water State Revolving Fund (DWSRF)
C) call for setting drinking water standards that are solely benefit based
D) all of the above
E) (a) and (b) only

Q4) U.S. primary drinking water regulations are performance-based standards.

A)True
B)False

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Page 18
 Chapter 17: Managing Hazardous Solid Waste and Waste

Sites
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Sample Questions
Q1) The identification of hazardous wastes under the Resource Conservation and
Recovery Act (RCRA)
A) uses benefit-cost analysis for characteristic wastes
B) uses a uniform approach to implement the identification criteria
C) employs an index based on toxicity
D) is based on risk-benefit analysis

Q2) The most common type of damage linked to hazardous wastes is water and soil
contamination.
A)True
B)False

Q3) In 1984, amendments to RCRA restrict landfilling activity, which in turn

A) would cause the MPC of land disposal to rise
B) may offer some incentive for waste disposers to generate less waste
C) reduce the external cost of landfilling
D) all of the above

Q4) The economic sector responsible for the largest amount of hazardous waste is
A) households
B) industry
C) government
Page 19
D) institutions

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 Chapter 18: Managing Municipal Solid Waste
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Sample Questions
Q1) The dollar value of a retail (or front-end) disposal charge needed to restore
efficiency to this market would be
A) $4
B) $2
C) $6
D) $20

Q2) In the United States, the composition of MSW is categorized both by materials and
by products.
A)True
B)False

Q3) State officials are establishing a deposit/refund system for batteries. Marginal costs
and benefits have been estimated to be:
MPC = 5 + 0.5Q \(\quad \)\(\quad \)MPB = MSB = 20 - 0.5Q
MSC = 5 + 0.7Q,
where Q is in millions, and the marginal cost and benefit values are in dollars per battery.
a. Determine the deposit/refund amount that achieves an efficient solution.
b. Explain the economics of why the refund might be set higher than the deposit.

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Page 20
 Chapter 19: Controlling Pesticides and Toxic Chemicals
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Sample Questions
Q1) Pesticide registration results in a formal listing with the EPA that is based on
benefit-cost analysis.
A)True
B)False

Q2) The first TSCA inventory was published in the 1970s.

A)True
B)False

Q3) The Green Chemistry Program

A) calls for participants in the product cycle to reduce life cycle environmental effects of
products
B) is synonymous with product stewardship
C) involves only participants from the scientific community
D) involves partnerships with many sectors, including academia, industry, research
centers, and others

Q4) According to the textbook application, the Responsible Care Program was launched
in the U.K.
A)True
B)False

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Page 21
 Chapter 20: Sustainable Development: International

Environmental Agreements and International Trade

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Sample Questions
Q1) Protectionists support the use of trade barriers, such as tariffs and quotas.
A)True
B)False

Q2) The Montreal Protocol and its amendments address the phase out of those
chemicals primarily responsible for climate change.
A)True
B)False

Q3) Ocean dumping of certain wastes is prohibited by the London Convention 1972
(LC72) and the 1996 Protocol.
A)True
B)False

Q4) The international agreement that was aimed specifically at ozone depletion is the
A) Kyoto Protocol
B) Montreal Protocol
C) Rio Declaration
D) London Convention 1972

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Page 22
Chapter 21: Sustainable Approaches: Industrial Ecology and

Pollution Prevention
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Sample Questions
Q1) According to Environment Canada, the cornerstone of the Canadian Environmental
Protection Act (CEPA) of 1999 is
A) reuse and recycling
B) safe disposal of hazardous wastes
C) environmental labeling
D) pollution prevention

Q2) ISO 14000 refers to mandatory internationals standards for environmental

management.
A)True
B)False

Q3) The "cradle to grave" approach to materials and waste management

A) involves a linear flow of materials and wastes
B) involves a circular flow of materials and wastes
C) does not consider industrial waste as part of the materials flow
D) none of the above

Q4) A closed flow of materials is one in which residuals are returned to the production
process.
A)True
B)False
Page 23

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