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Exam 2 2nd Semester
Economics
24
Environmental Studies
Undergraduate 1
03/14/2010

Additional Environmental Studies Flashcards

 


 

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Term
Economy
Definition
The management of resources to meet our needs in the most efficient manner possible
Term
Sustainable Development
Definition
Meeting the needs of the present without compromising the ability of future generations to meet their own needs
Term
Capital
Definition
Any form of wealth available for use in the production of more wealth.
ex: natural, human, manufactured, social
Term
Capitalistic System
Definition
In Theory: Buying and selling between willing participants will bring about the greatest efficiency of resource allocation. See: supply/demand curves, adam smith
Term
Classical Economics
Definition
a branch of moral philosophy concerned with how individual interests and values intersect with larger social goals.
Term
Demand
Definition
the amount of a product or service consumers are willing and able to buy at various prices assuming they are free to express their preferences.
Term
Supply
Definition
is the quanIty of that product being offered for sale at various prices.
Term
Market Failures
Definition
“when the allocaIon of the goods or services of the free market is not efficient”... Ex: imperfect competition, not all costs are represented, imperfect information effecting transactions, principle agent problem, externalities...
Term
Marginal Cost
Definition
Cost of producing one more unit of a product or service.
Term
Price Inelasticity
Definition
Raising price does not necessarily reduce demand... gasoline to some degree, cigareSes, food.
Term
The Two branches of economic thought are:
Definition
PoliIcal Economy was concerned with social structures, value systems, and relaIonships among classes (Marx...)
– Neoclassical Economics adapted principles of modern science to economic analysis... social concerns not considered
Retained emphasis on scarcity and supply and demand in determining prices and resource allocaIon.
• Growthisseenasa necessity.
• Naturalresources viewed as merely factors of producIon rather than criIcal supplies of materials, services, and waste sinks.
Term
Growth
Definition
Is the way to maintain full employment – Is the way to avoid class conflict
PROFIT?
Term
resource
Definition
Anything with potenIal use in
creaIng wealth or giving saIsfacIon.
– Nonrenewable resources ‐ Materials present in fixed amounts in the environment.
– Renewable resources ‐ Materials that can be replenished or replaced.
– Intangible resources ‐ Abstract resources such as open space, beauty, serenity etc..
Term
Ecological Economics
Definition
Acknowledges dependence on essenIal life‐support services provided by nature.
• ASempts to account for externaliIes – both social and environmental costs
• ASempts to address natural ameniIes/non economic values
Term
Sustainability
Definition
livingontheearth’srenewable resources without damaging the ecological processes that support us all.
Term
the Nonmarket Values
Definition
– Use ‐ Price to consume a resource. – OpIon ‐ Preserving for future. – Existence ‐ Even if unseen. – AestheIc ‐ Appreciated for beauty. – Cultural ‐ Important in cultural idenIty. – ScienIfic ‐ Experimental aspects.
Term
Cost Benefit Analysis
Definition
ASempts to assign values to resources and social and environmental effects of carrying out any undertaking.
Term
Discount Rates
Definition
RecogniIon that something may be worth less today than it will be in the future.
Discount rates tend to reflect the rate at which those in the economy are willing to trade present for future consumpIon
Many environmental economists take a dim view of discount rates, fearing that future damages will always be discounted in calculaIons of cost‐benefit
Term
Market Mechanisms
Definition
making externaliIes (e.g. polluIon) internal to the costs of business
Term
Triple Bottom Line
Definition
People, planet, profit
Term
Metrics for Evaluating the Economy
Definition
Gross NaIonalProduct(GNP)‐Totalvalueofgoods and services produced by an economy (all US residents) during a year.
• Gross DomesIc Product (GDP) ‐ The market value of goods and services produced by labor and property in the United States, regardless of naIonality; GDP replaced gross naIonal product (GNP) as the primary measure of U.S. producIon in 1991.
• BothcriIcizedasmeasureofwell‐beingbecause they do not disInguish between beneficial and harmful growth.
– Also do not account for resource deple+on or ecosystem damage.
Term
Genuine Progress Index...
Definition
Takes into account real per capita income, distribuIonal equity, natural resource depleIon, and environmental damage.
Term
Measuring Real Human Progress?
Definition
Human Development Index (HDI)
– Incorporateslifeexpectancy,educaIonalaSainment,andstandardof living measures.
Term
Measuring Real progress?
Definition
Environmental Performance Index (EPI)
– Incorporatesenvironmentalhealth,airquality,waterresources,natural resources, biodiversity and habitat and sustainable energy
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