Economics of the Environment Quiz

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Economics of the Environment: a General level Economics quiz. Test your knowledge with 15 questions!
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Questions

Question 1
What is a negative externality?
A A cost imposed on a third party
B A tax benefit
C A government subsidy
D A profit for the company
Question 2
What is a common example of a negative externality?
A Pollution
B Education
C Public parks
D Scientific research
Question 3
What is the purpose of a Pigou tax?
A To correct a negative externality
B To lower corporate profits
C To increase pollution
D To fund sports events
Question 4
What does a carbon tax aim to do?
A Promote coal mining
B Lower the price of oil
C Reduce greenhouse gas emissions
D Increase electricity usage
Question 5
If a factory pollutes a river, who bears the external cost?
A The local community
B The factory owner
C The government only
D No one

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