Question 1
According to __________, justice is when the benefits and burdens of society are distributed such that a person receives the value of the contribution he or she makes to an enterprise.
A. capitalism
B. incentivization
C. utilitariansm
D. marxism
Question 2
Imagine that Joe and Sarah both own competing lemonade stands. It costs 50 cents to make one lemonade, so Joe and Sarah both charge customers $1 for a glass of lemonade. In an attempt to run Joe out of business, Sarah begins charging 25 cents for lemonade so that Joe cannot compete. This is an example of what?
A. tying arrangements
B. incentivization
C. exclusive dealing arrangements
D. predatory price discrimination
Question 3
Which of the following is NOT a feature of a perfectly competitive free market?
A. All buyers and sellers are utility maximizers.
B. Buyers and sellers do not have knowledge of what every other buyer and seller is doing.
C. Goods being sold in the market are extremely similar.
D. No external parties regulate the price.
Question 4
__________ is when a company sells to a retailer only on condition that they agree to charge the same set retail prices.
A. Retail Price Maintenance Agreements
B. Bid Rigging
C. Exclusive Dealing Arrangements
D. Predatory Price Discrimination
Question 5
What is a horizontal merger?
A. When a company unifies operations with its suppliers and distributors
B. When a company joins with another company in another market to cross-sell their goods
C. When two companies in the same market join together instead of competing
D. When a company splits into two to better specialize in their markets
Question 6
A(n) __________ market is one that can, and generally will, deviate from the ideals of capitalist justice, economic utility, and negative rights.
A. highly concentrated
B. utilitarian
C. monopoly
D. oligopoly
Question 7
Which of the following is the term for a situation in which firms limit their output?
A. market allocation
B. bid rigging
C. exclusive dealing arrangements
D. manipulation of supply
Question 8
The common definition of price fixing is when: also purchases other goods from the firm.
A. companies agree to set prices artificially high.
B. companies agree to limit production.
C. a company sells a buyer certain goods only on condition that the buyer
D. companies agree to limit production.
Question 9
An oil company is expanding, but no new oil fields are available. They therefore must resort to the expensive and less-efficient practice of extracting petroleum from oil sands. This is known as:
A. the principle of increasing marginal cost.
B. the principle of gross marginal utility.
C. the principle of diminishing marginal utility.
D. the principle of increasing marginal utility.
Question 10
When a company sells a buyer certain goods only on condition that the buyer also purchases other goods from the firm, this is known as:
A. manipulation of supply.
B. exclusive dealing arrangements.
C. price discrimination.
D. tying arrangement.
Question 11
The common definition of price fixing is:
A. when companies agree to set prices artificially high.
B. when companies agree to limit production.
C. when a company sells a buyer certain goods only on condition that the buyer also purchases other goods from the firm.
D. when companies agree to limit production.
Question 12
Oligopoly markets that are __________ markets are dominated by a few (three to eight) large firms. They include many of the largest manufacturing industries.
A. capitalistic
B. incentivized
C. focused
D. highly concentrated
Question 13
Which of the following is NOT one of the ways efficiency comes about in perfectly competitive free markets?
A. They encourage firms to minimize the resources they consume to produce a commodity and to use the most efficient technologies.
B. They distribute bundles of commodities among buyers so that they receive the most satisfying commodities they can purchase, given what is available to them and the amount they have to spend.
C. Individuals are encouraged to or prevented from engaging in a certain business, based on their expertise and the financial resources required.
D. They motivate firms to invest resources in industries with a high consumer demand and move away from industries where demand is low.
Question 14
What is the "network effect" barrier to entry into a market?
A. When the value of a product goes down as the number of users increases
B. When a product becomes more difficult to supply as the number of users increases
C. When the value of a product goes up as the number of users increases
D. When the value of a product goes up as the number of users decreases
Question 15
The most common cause of oligopolistic market structure is the __________ or unification of two companies that formerly competed in the same line of business.
A. cooperative
B. joint venture
C. horizontal merger
D. vertical merger
Question 16
In a perfectly free economy, all buyers and sellers are what?
A. utility users
B. utility creators
C. utility maximizers
D. utility diminishers
Question 17
Which view regarding oligopolies argues that oligopolies should not be broken up because they provide benefits, which do not exist in a more decentralized market?
A. the Antitrust view
B. the Do-nothing view
C. the Regulation view
D. the Public Policy view
Question 18
Which of the following is the term for a situation in which manufacturers sell to a firm only if the firm agrees not to purchase from competing manufacturers?
A. retail price maintenance agreements
B. bid rigging
C. exclusive dealing arrangements
D. price discrimination
Question 19
What is the most obvious failure of monopoly markets?
A. the damage to the environment
B. the high prices they allow the monopoly companies to charge
C. the inequalities between employees and executives
D. monopoly markets have no real failures
Question 20
Which of the following is the term for a situation in which firms agree to sell only to customers in specific territories or to specific demographics?
A. market allocation
B. bid rigging
C. exclusive dealing arrangements
D. tying arrangements
Question 21
What is Blackstone's theory of environmental rights?
A. All organisms have a right to life, and we have a duty to protect their environment.
B. Humans have a duty to ensure a livable environment because we each have a right to a livable environment.
C. Environmental protection is necessary for the continuation of the species, and all other concerns are secondary.
D. The only way to protect the environment is through political change.
Question 22
What is a good way for a business to determine the level of pollution control/removal?
A. Survey public opinion to find out what people think is a good amount.
B. Consult with environmental scientists to determine the effects of the pollution.
C. Do a cost-benefit analysis to determine the cost of removal versus benefits of removal.
D. Remove all pollution, because zero pollution is achievable with enough cost.
Question 23
According to your textbook, what remedy for covering the external cost of pollution is the most fair and just?
A. Make everyone pay a small amount to cover the costs.
B. Internalize the costs of pollution.
C. Shift production to a less populated areA.
D. Reduce production so that the external costs are lesseneD.
Question 24
What is the term for the cost an individual or company must pay out of their own pocket for an economic activity?
A. private cost
B. social cost
C. economic cost
D. associated cost
Question 25
________ holds that until those patterns of hierarchy and domination are changed, we will be unable to deal with environmental crises.
A. Conservation theory
B. The ethics of care
C. Sustainability
D. Social ecology
Question 26
The saving or rationing of natural resources for later use is referred to as:
A. Evolution
B. Ecology
C. Planned deletion
D. Conservation
Question 27
What is the "safety standard" of pollution?
A. when an environment is clean enough for all organisms that live in it
B. when an environment is clean enough that it causes 3 deaths out of 10,000
C. when an environment is clean enough to allow us to live healthy human lives
D. no safety standard; all pollution is bad
Question 28
Which of the following is not a greenhouse gas?
A. carbon dioxide
B. methane
C. nitrogen
D. nitrous oxide
Question 29
Which of the following is NOT an argument against attributing rights to future generations?
A. Future generations will have better technology to solve their problems.
B. We do not know what interests future generations will have, or what rights they have.
C. Future generations may not exist.
D. If future generations have rights, everyone in the present must always sacrifice for them.
Question 30
Though some of the views of deep ecology are unusual and controversial, two traditional views of ethics can help us to develop an environmental ethic: utilitarianism and:
A. ethical relativism.
B. distributive justice.
C. concern for human rights.
D. virtue ethics.
Question 31
Sustainability is often said to depend on "three pillars". Which of the following is NOT one of these three pillars?
A. social arrangements
B. economic activities
C. environmental activities
D. focus on profitability
Question 32
"If you cut down a tree, plant a tree" is an example of what?
A. precautionary principle
B. conservation based on justice to future generations
C. ecocentrism
D. anthropocentrism
Question 33
What was the United States' total energy consumption in 2008 (equivalent to barrels of oil)?
A. 1 million barrels of oil worth of energy consumption
B. 17 million barrels of oil worth of energy consumption
C. 500 million barrels of oil worth of energy consumption
D. 17 billion barrels of oil worth of energy consumption
Question 34
Acid rain is caused by:
A. global warming.
B. fossil fuels.
C. airborne toxins.
D. oceans evaporating.
Question 35
When is the hole in the stratospheric ozone layer over the Antarctic expected to recover?
A. between 2060 and 2075
B. between 2016 and 2020
C. between 2100 and 2200
D. never
Question 36
How does carbon dioxide contribute to global warming?
A. It is less dense, leaving less space in the atmosphere for oxygen.
B. It absorbs heat from the sun, preventing it from escaping into space.
C. It is created during combustion, which is an exothermic process that collectively heats up the earth.
D. Carbon dioxide does not contribute to global warming.
Question 37
What is the term for the view that protecting the environment is important because it harms human beings?
A. ecocentrism
B. anthropocentrism
C. exocentrism
D. biocentrism
Question 38
What is the term for the sum total internal and external costs of an economic activity?
A. private cost
B. social cost
C. economic cost
D. associated cost
Question 39
What is one reason why businesses were able to ignore their effects on the environment for so long?
A. Businesses tend to view the effects of their activities as negligible and ignore them.
B. Governments had no way to stop them.
C. Businesses did not know they were polluting.
D. Businesses used bribes for many years as incentives to government to ignore the effects.
Question 40
About ________ of the world's surface water is too polluted to fish or swim in.
A. 10%
B. 25%
C. 40%
D. 60%.