Question

22. US National Parks are established to support recreation and conservation. The opportunity cost of a program to allow oil drilling and production in a national park is a. the lost recreation and enjoyment that occurs due to the disruption of the park due to oil drilling and production b. the lost value of the flora and fauna that is not conserved due oil drilling and production c. the lost value of appreciation on the stock of oil that would remain if the drilling did not occur d. all of the above are correct

23. Environmental Impact Assessments a) can include economic analyses if changes in human behavior will impact the environment. b) focus on biophysical impacts and institutional analysis. c) includes an assessment of all private and social costs, transfer payments, and uses the social discount rate. d) are required by law for all public and private investments.

24. Stated preference techniques to estimate the economic value of non-market environmental goods a. assume low transactions costs. b. can be used to estimate the value of use and non-use values of environmental goods. c. include contingent valuation, hedonic prices, and travel cost methods. d. assume complementarily with market goods and services.

25. US federal government efforts to protect forest ecosystems include a. road construction in US National Forests. b. green certification programs. c. establishing National Parks and Wilderness areas. d. all of the above are correct. 26. The principle determinants of the global demand for crude oil include a. the price of crude oil b. worldwide economic activity, population, and income c. new drilling technologies and discoveries of new deposits d. all of the above are correct.

Answer 1

Ans.

22. US National Parks are established to support recreation and conservation. The opportunity cost of a program to allow oil drilling and production in a national park is the lost recreation and enjoyment that occurs due to the disruption of the park due to oil drilling and production, the lost value of the flora and fauna that is not conserved due oil drilling and production and the lost value of appreciation on the stock of oil that would remain if the drilling did not occur. So all the above are correct. So correct option is D.

23. Environmental Impact Assessments are required by law for all public and private investments. This is because procedure for carrying out before execution of any public, private projects is necessary to obtain EIA. So the correct option is D.

24. Stated preference techniques to estimate the economic value of non-market environmental goods can be used to estimate the value of use and non-use values of environmental goods. So the correct option is B.

25. The principle determinants of the global demand for crude oil include the price of crude oil, worldwide economic activity, population, and income and new drilling technologies and discoveries of new deposits. So all the above are correct. So correct option is D.