Environmental Economics 4th Canadian Edition by Barry C Field – Test Bank

1.

A(n) ________ in the economic world is something that leads people to channel their production and consumption efforts in a specific direction. 
 

A.  moral obligation

B.  economic incentive

C.  property right

D.  ethical motive

2.

Any economic system will produce destructive environmental impacts if the ________ within the system are not structured to avoid them. 
 

A.  ethics

B.  prices

C.  property rights

D.  incentives

3.

A small coastal community with the power to control access to its scallop fishery is an example of ________. 
 

A.  common property rights

B.  private property rights

C.  an open access resource

D.  a positive externality

4.

A common pasture on which anyone is allowed to freely graze sheep or cattle is an example of ________. 
 

A.  private property rights

B.  an open access resource

C.  common property rights

D.  community property rights

5.

The ________ level of pollution can be negotiated privately based on property rights when only a few parties are involved and the source, amount and type of pollution is clearly identifiable. 
 

A.  cost-effective

B.  zero-emissions

C.  fair

D.  socially efficient