natural resources and the environment toward sustainable development Mcqs
1. Land and natural resources are considered ?
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A. non-producible

B. common property resources

C. capital accumulation

D. output

2. An example of a transfer payment is ?
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A. Profit

B. government purchases

C. rent

D. unemployment benefits

E. wages

3. Real GDP is measured in __________ prices while nominal GDP is measured in _________ prices?
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A. foreign; domestic

B. domestic; foreign

C. base year; current year

D. intermediate; final

E. current year; base year

4. Many environmental resources are public goods, which are characterized by ?
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A. nonrivalry and nonexclusion in consumption

B. rivalry and exclusion in consumption

C. nonrivalry but exclusion in usage

D. rivalry but nonexclusion in production

5. The Genuine Progress indicator is ?
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A. increasing from 1976 to 2000

B. also known as index of Sustainable Economic Welfare per capita

C. resource depletion and environmental cost divided by GDP per capita

D. GDP plus resource depletion and environmental cost

6. Deforestation ?
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A. augments carbon restoration provided by forest

B. leads to localized flooding

C. #NAME?

D. reduces sustainable logging potential

7. Micheal Roemers three-sector model shows that growth in the booming export sector I- reduces the price of foreign exchange II- retards other sectors growth by reducing incentives to export other commodities III- reduces incentives to replace domestic goods for imports IV- raises factor and input prices for non-booming sectors ?
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A. I and III only

B. I, II , III only IV

C. I, II and III only

D. II and III only

8. In a boom ?
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A. Shortages may occur

B. Prices are likely to fall

C. Surpluses are likely to occur:

D. Supply will increase immediately to match demand
9. Progress that meets the needs of the present without compromising the ability of future generations to meet their own needs is ?
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A. net primary productivity (NPP)

B. the tragedy of commons

C. the impossibility theorem

D. sustainable development
10. UK GDP would exclude which of the following ?
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A. Lawyer services purchased by a home buyer

B. Copper purchased by tap manufacturer Bristan

C. Lawn care services purchased by a home owner.

D. The purchase of a new Nissan produced in Sunderland

E. A new art gallery purchased by the city of Newcastle

11. The standard of living is often measured by ?
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A. Real GDP per capita

B. Real GDP plus depreciation

C. Real GDP

D. Real GDP population

12. Biodiversity ?
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A. refers to reconstruction of tropical rainforests

B. refers to diversifying earths nonrenewable resource

C. refers to biological effects on commercial plantation

D. includes genetic species ecosystem and functional diversities
13. The government levying taxes on polluters or charging a surcharge for pesticide use are ?
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A. internalization of negative spillover effects

B. examples of Coases theorem

C. marginal abatement cost

D. examples of a free rider

14. In a recession a government ?
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A. Is likely to want to decrease demand in the economy

B. Is likely to want to decrease demand in the economy

C. Is likely to want to stabilise demand in the economy

D. Is likely to want to increase supply in the economy
15. A higher GDP per capita may not means that the quality of life has really improved because ?
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A. It does not measure the quality of the items produced

B. It measures Gross Domestic Product

C. It measures wealth not income

D. It is only measured every five years:

16. If nominal GDP in 2005 exceeds nominal GDP in 2004, then the production of output ?
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A. may have risen fallen, or stayed the same because there is not enough information to determine what happened to real output

B. must have risen

C. must have fallen

D. must have stayed the same

17. To adjust from Gross National Product to Net National Product ?
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A. Deduct subsidies

B. Deduct depreciation

C. Deduct indirect taxes

D. Add inflation

18. Which of the following is an example of tragedy of commons ?
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A. common use of public toilets

B. smoking in a public place

C. over fishing

D. excessive rain

19. The green house effect is the phenomenon by which ?
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A. biological diversity is dominant in agricultural production

B. the globes water pollution affects plankton

C. climatic changes occur naturally in the forest

D. the earths atmosphere traps infrared radiation
20. According to Coases theorem when property rights are well defined and legally enforceable and transactions costs are not prohibitive ?
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A. participants will organize their transactions

B. population growth leads to rigid land rights

C. individuals overuse of the biosphere is curtailed

D. violence displacement erosion and poverty are minimized

21. In a recession ?
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A. Unemployment is likely to be low

B. Growth is slow

C. Growth is negative

D. Prices are likely to increase

22. The Organization of Petroleum Exporting Countries (OPEC) is a(n) _________whose members agree to limit output and fix prices?
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A. monopoly

B. entropy

C. industry

D. cartel
23. If a cobbler buys leather for Rs100 and thread for Rs50 and uses them to produce and sell Rs500 worth of shoes to consumers the contribution to GDP is ?
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A. Rs500

B. Rs650

C. Rs100

D. Rs50

24. GDP plus net property income from abroad equals what ?
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A. Real GDP

B. GNP

C. Depreciation

D. NNP

25. If Pakistans GDP exceeds Pakistans GNP, then ?
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A. intermediate production exceeds final production

B. real GNP exceeds nominal GNP

C. foreigners are producing more in the Pakistan then Pakistanis are producing in foreign countries

D. real GDP exceeds nominal GDP

26. Gross National Product equals ?
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A. Gross Domestic Product adjusted for inflation

B. Gross Domestic Product plus net property income from abroad

C. Net National Product plus net property income from abroad

D. Net National Product adjusted for inflation

27. The value of plant and equipment worn out in the process of manufacturing goods and services is measured by ?
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A. intermediate production

B. consumption

C. depreciation

D. Net National Product

E. Investment

28. Air pollution from automobile exhausts, and water pollution steel plants are examples of ?
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A. negative externalities

B. social distortion

C. internal spillover

D. external economies

29. The booming of North Seas gas export revenues in the 1970s that appreciated the guilder, making industrial export more costly in foreign currencies and increasing foreign competition and unemployment is known as ?
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A. Trade deficit

B. Dutch disease

C. Economic turmoil

D. Blind river disease

30. Which of the following would be excluded from UK GDP fro 2005? The sale of ?
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A. the value of a lawyers services

B. All of things mentioned in these answers should be counted in 2005 GDP.

C. a 2005 Honda made in Swindon

D. a haircut
31. Theodore panayotou (1993) argues that environment degradation originates from the following EXCEPT ?
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A. defective economic policies

B. inadequate property

C. markets distortions

D. the expansion of capitalism
32. Irreversibility refers to ?
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A. natural resource that cannot be reproduced in the future if we fail to preserve them now

B. industrialization replacing agriculture in LDCs

C. natural extinction of various species in DCs

D. obtaining intellectual property rights for products

33. GDP would include which of the following ?
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A. the value of taking a day off from work

B. illegal drug sales

C. consulting services

D. housework

E. intermediate sales

34. Net National Product equals ?
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A. Gross National Product minus depreciation

B. Gross Domestic Product plus net property income from abroad

C. Gross Domestic Product adjusted for inflation

D. Gross National Product adjusted for inflation

35. Pakistans Gross Domestic Product (in contrast to Gross National Product) measures the production and income of ?
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A. Pakistan -owned firms no matter where they are located in the world

B. The domestic manufacturing sector only

C. none of these answers

D. People and factories located within the borders of the Pakistan

E. The domestic service sector only

36. How is your purchase in Pakistan of a Rs40,000 BMW automobile that was produced entirely in Germany recorded in the Pakistans GDP accounts ?
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A. Net exports increase by Rs40,000

B. Consumption in increase by Rs40,000 and net export decreases by Rs40,000

C. Investment increased by Rs40,000 and net exports increases by Rs40,000

D. There is no impact because this transaction does not involve domestic production

37. Gross Domestic Product can be measured as the sum of ?
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A. Net National Product Gross National Product, and Disposable personal income

B. final goods and services intermediate goods, transfer payments, and rent

C. investment wages profits and intermediate production

D. consumption investment government purchases and net exports

E. consumption transfer payments. wages and profits.

38. Negative externality is also known as ?
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A. marginal damage

B. resource curse

C. public goods

D. external diseconomies
39. Which of the following country has 25 percent of the worlds estimated oil reserves and the lowest cost production as well as a dominant role in OPEC pricing ?
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A. Venezuela

B. Russia

C. Iraq

D. Saudi Arabia
40. To adjust GDP from market prices to factor cost ?
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A. Deduct indirect taxes and add subsidies

B. Subtract subsidies

C. Add indirect taxes

D. Deduct indirect taxes and subsidies

41. Gross Domestic Product is the sum of the market value of the ?
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A. final goods and services

B. manufactured goods

C. inferior goods and services

D. mal goods and services

E. intermediate goods

42. The Club of Rome Study, The Limits to Growth suggests that as natural resources diminish ?
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A. costs rise, leaving less capital for future investment

B. technological change compensates for capital depletion

C. contingent valuation becomes critical

D. capital increasingly replaces labor

43. If your grandparents buy a newly built retirement home, this transaction would affect ?
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A. consumption

B. government purchases

C. net exports

D. none of these answers

E. investment
44. The Montreal Protocal, signed in 1987 and strengthened in 1990 ?
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A. attains the global optimal level of common property resource

B. minimizes free riders of public goods

C. relies on internationally tradable emission permits

D. reduces ozone depletion through the cutting of chlorofluorocarbon production