Forest Economics MCQs January 8, 2026August 19, 2024 by u930973931_answers 20 min Score: 0 Attempted: 0/20 Subscribe 1. What is the primary focus of forest economics? (A) The biological study of forests (B) The physical structure of forest ecosystems (C) The economic valuation and management of forest resources (D) The recreational use of forests 2. Which term refers to the value of forest goods and services not traded in markets? (A) Non-market value (B) Market value (C) Economic rent (D) Opportunity cost 3. What is ‘economic rent’ in the context of forest resources? (A) The income earned from the sale of forest products (B) The cost of maintaining forest land (C) The difference between the total value of forest resources and their production cost (D) The cost of forest conservation 4. Which method is used to estimate the non-market value of forest ecosystems? (A) Hedonic pricing (B) Contingent valuation (C) Travel cost method (D) Cost-benefit analysis 5. What does ‘sustainable forest management’ aim to achieve? (A) Maximizing timber production only (B) Eliminating all forest pests (C) Balancing economic, environmental, and social objectives (D) Expanding forested areas only 6. Which term describes the value of a forest in terms of its potential to provide future economic benefits? (A) Future value (B) Present value (C) Net present value (D) Discounted value 7. What is ‘forest valuation’? (A) The process of assessing the physical attributes of forest ecosystems (B) The estimation of forest biodiversity (C) The management of forest resources for recreation (D) The process of determining the economic value of forest resources 8. Which economic principle reflects the trade-off between the use and preservation of forest resources? (A) Opportunity cost (B) Supply and demand (C) Comparative advantage (D) Diminishing returns 9. What is ‘forest capital’? (A) The monetary investment in forest industries (B) The total value of forest resources and their potential for economic use (C) The physical infrastructure in forest areas (D) The financial returns from forest products 10. Which term refers to the economic impact of forest degradation on local communities? (A) Social cost (B) Environmental cost (C) Market failure (D) Externality 11. What does ‘economic sustainability’ in forestry entail? (A) Ensuring forests are managed for maximum short-term profit (B) Managing forests to meet current needs without compromising future generations (C) Eliminating all non-native species (D) Expanding urban areas into forested regions 12. Which method is used to estimate the value of forest ecosystem services? (A) Production function approach (B) Hedonic pricing (C) Travel cost method (D) Market analysis 13. What is ‘forest resource rent’? (A) The total revenue generated from forest products (B) The price of timber in the market (C) The cost of forest management (D) The value derived from forest resources minus the cost of their use 14. Which concept represents the economic benefit of preserving forests compared to using them for immediate profit? (A) Net present value (B) Opportunity cost (C) Discounted cash flow (D) Economic rent 15. What is ‘forest carbon accounting’? (A) The process of calculating the economic value of timber resources (B) The evaluation of market prices for forest products (C) The cost of forest management (D) The estimation of carbon sequestration potential and its economic value 16. Which term describes the practice of managing forests to maximize economic returns while ensuring ecological sustainability? (A) Sustainable forest management (B) Intensive forestry (C) Commercial forestry (D) Clear-cutting 17. What is ‘timber valuation’? (A) The assessment of forest biodiversity (B) The evaluation of forest management practices (C) The estimation of the market value of timber resources (D) The cost of forest conservation efforts 18. Which principle involves valuing forest resources based on their contribution to the overall economy? (A) Market equilibrium (B) Comparative advantage (C) Economic contribution (D) Diminishing marginal returns 19. What does ‘forestry productivity’ refer to? (A) The economic value derived from forest resources (B) The amount of forest area managed annually (C) The rate of forest growth (D) The diversity of forest species 20. Which term refers to the value of ecosystem services provided by forests, such as clean water and air? (A) Non-market value (B) Market value (C) Economic rent (D) Opportunity cost