Environmental Science Environmental Economics and Sustainability 1

Question 1

A negative externality in economics occurs when:

Accepted Answer

A transaction between two parties imposes costs on a third party who is not compensated

Answer

A company receives a negative return on its environmental investments

Answer

Government regulation reduces the profit margin of a business below zero

Answer

Consumers choose not to purchase a product because of its environmental impact

Question 2

The triple bottom line (TBL) framework in corporate sustainability reporting measures performance across:

Accepted Answer

Profit (financial), people (social), and planet (environmental) dimensions

Answer

Economic growth, resource efficiency, and waste reduction targets

Answer

Short-term, medium-term, and long-term financial returns on sustainability investments

Answer

Local, national, and international environmental regulatory compliance

Question 3

Ecosystem services are most accurately described as:

Accepted Answer

The benefits that humans derive from functioning natural ecosystems

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Commercial services offered by environmental consulting companies for ecosystem restoration

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Government programs that pay landowners to conserve natural habitats

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The biological processes that maintain species diversity within an ecosystem

Question 4

The Environmental Kuznets Curve (EKC) hypothesis suggests that:

Accepted Answer

Environmental pollution initially increases as a country develops economically but decreases after a certain income threshold

Answer

Environmental degradation is linearly proportional to economic growth in all countries

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Wealthier countries always have better environmental conditions than poorer countries

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Economic growth and environmental protection are always mutually exclusive goals

Question 5

Life Cycle Assessment (LCA) is a tool that evaluates:

Accepted Answer

The environmental impacts of a product or process across its entire life from raw material extraction through production, use, and disposal

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The expected operational lifespan of industrial equipment before replacement is needed

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The lifecycle of regulatory permits from application through renewal and cancellation

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The career trajectory of environmental professionals from entry level to executive positions

Question 6

Payments for Ecosystem Services (PES) schemes work by:

Accepted Answer

Compensating landowners or communities for maintaining ecosystems that provide services to others

Answer

Charging industrial polluters per unit of ecosystem damage they cause

Answer

Requiring governments to fund restoration of degraded ecosystems as payment for past damage

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Allowing companies to purchase ecosystem credits to offset their biodiversity impacts