Free Practice Quiz Question List

08 Economics and Sustainability Online Quiz Questions

Use this free practice quiz with 20 questions to review 08 Economics and Sustainability, test your knowledge, and prepare for your next test or exam.

20 questions

True or false

1 point

True or false: GDP by itself shows whether natural assets are being depleted and how environmental harm affects quality of life.

A
True
B
False

Fill in the blank

1 point

A circular economy uses durability, repair, reuse, and recycling to reduce waste and demand for .

Choose one

1 point

A factory's customers and owners are part of its transactions, but nearby residents bear health costs from its emissions. What economic concept describes those costs falling on people outside the transaction?

A
A private cost
B
An externality
C
A subsidy
D
A market price

Written response

1 point

What framework helps governments organize environmental and economic data together?

Choose one

1 point

Which policy instrument charges polluters for each unit of pollution but does not guarantee a specific total emissions level?

A
A pollution tax or fee that charges for each unit of pollution without guaranteeing a specific total emissions level
B
A cap-and-trade system that limits total emissions and allows permits to be traded
C
A regulation that requires polluters to meet a defined emissions standard
D
A subsidy that supports investments to reduce pollution

Choose all

1 point

Which statements accurately describe economic valuation of environmental changes? Select all that apply.

A
Estimates of the flood damage avoided by wetlands can inform public investment decisions.
B
A monetary estimate of an ecosystem service captures nature's complete worth.
C
Cultural or intrinsic values may not be captured by monetary estimates.
D
Valuation means all ecosystem services are traded in markets.

True or false

1 point

True or false: In a steady-state economy, keeping the overall scale of the economy stable means every industry and technology must remain unchanged.

A
True
B
False

Fill in the blank

1 point

Doughnut economics frames the goal as meeting while staying within ecological limits.

Written response

1 point

What World Bank measure starts from national saving and adjusts for investment in education, resource depletion, and pollution damage?

Choose one

1 point

When assessing whether a green-growth approach is succeeding, which condition is central?

A
Whether GDP increases in every year
B
Whether reductions in resource use and pollution are sufficiently large and lasting
C
Whether every industry keeps exactly the same level of output
D
Whether environmental costs are captured by one monetary indicator

Choose all

1 point

Which statements accurately distinguish post-growth and degrowth approaches? Select all that apply.

A
Post-growth prioritizes well-being and ecological outcomes rather than treating continued GDP growth as the primary objective.
B
Degrowth calls for planned reductions in resource-intensive production and consumption, particularly in affluent settings, alongside measures to support well-being and equity.
C
Post-growth and degrowth both require every industry and technology to remain unchanged.
D
Degrowth is simply another name for a circular economy.

Choose one

1 point

A government wants to encourage firms to invest in equipment that reduces pollution. Which policy instrument most directly serves that purpose?

A
Require every polluter to meet a defined emissions standard
B
Limit total emissions by issuing tradable permits
C
Support investments that reduce pollution
D
Charge polluters for each unit of pollution

Choose one

1 point

A government wants its environmental accounts to show changes that are not well represented by money, without implying that all values are interchangeable. Which approach best fits this goal?

A
Convert every environmental change into money and use only that figure.
B
Exclude environmental information from economic data.
C
Use physical measures alongside monetary measures.
D
Assume that physical measures and monetary values are interchangeable.

Open ended

1 point

A local government is considering restoring wetlands that reduce flooding. Explain how economic valuation could inform its decision, and give reasons why a monetary estimate should not be treated as a complete measure of the wetlands' value.

Choose one

1 point

A government wants to ensure that emissions from a group of power plants do not exceed a specified total. Which policy approach most directly sets that limit?

A
A pollution tax, because it guarantees a fixed emissions total
B
A cap-and-trade system, because it limits total emissions
C
A subsidy, because it directly fixes the amount of pollution
D
A regulation, because it allows firms to trade permits without an emissions limit

Written response

1 point

What economic term describes the private cost of an activity together with the external cost it imposes on others?

Choose one

1 point

A city estimates the flood damage avoided by conserving nearby wetlands. Which conclusion about this estimate is most consistent with the role and limits of environmental valuation?

A
It makes every ecosystem service directly comparable because all services are traded in markets.
B
It provides a complete monetary measure of nature's worth if willingness to pay is included.
C
It can inform decisions, but monetary estimates may omit important values and depend on assumptions.
D
It replaces the need for physical environmental measures in public accounting.

Choose one

1 point

A country reports rising GDP, but officials do not know whether the gains reached low-income households. What does this situation illustrate about GDP?

A
GDP measures production but does not by itself show how income is distributed.
B
GDP measures the distribution of income but not the value of final production.
C
GDP shows whether natural assets are being depleted whenever output rises.
D
GDP measures overall well-being as long as it covers a full year.

Written response

1 point

Which economic model aims to reduce waste and demand for virgin materials through durability, repair, reuse, and recycling?

True or false

1 point

True or false: Doughnut economics frames economic goals as meeting social foundations while staying within ecological limits.

A
True
B
False