Chapter 7- Economy
KEY TERMS
Commons-Land owned publicly, with public access for private uses
Direct Costs-Costs carried by the producer in obtaining, processing and distributing a product
Environmental Economics-Is about how to persuade people, organizations and society to act in a way that benefits the environment
Externality-a.k.a indirect cost, something that is not recognized by producers as part of the cost or benefit
Indirect Cost- a.k.What is meant by the term the tragedy of the commons? Which of the following are the result of this tragedy?a externality, something that is not recognized by producers as part of the cost or benefit
Intangible Factor-A factor you cannot touch directly, but is valued.
Natural Capital-Ecological systems that provide benefits
Policy Instruments-What people do, what people can do, and how people do it
Public-Service Functions-A complicating factor in maintaining clean air, soil and water, and sustaining renewable resources is that ecosystems do these without our help.
Risk-Benefit Analysis-Riskiness of a present action in terms of possible outcomes is weighed against the benefit.
Tangible Factor-A factor you can touch,buy and sell.
QUESTIONS
1) What is meant by the term the tragedy of the commons? Which of the following are the result of this tragedy?
The tragedy of the commons is the depletion of a shared resource by individuals, acting independently and rationally according to each one's self-interest, despite their understanding that depleting the common resource is contrary to the group's long-term best interests. (A) The fate of California condor
2) What is meant by risk-benefit analysis?
Risk-benefit analysis is weighing the riskiness of an action to the benefit of the action.
3) Cherry and walnut are valuable woods used to make fine furniture. Basing your decision on the information in the following table, which would you invest in?
(A) Cherry plantation
4) Bird flu is spread in part by migrating wild birds. How would you put a value on...
(A) The continuing existence of one species of these wild birds... Base it off of how popular the bird is to everyone
(B) Domestic chickens important for food but also a major source of the disease ... Very expensive
(C) Control of the disease for human health? ... How much the disease has spread and how deadly it is
5) Which of the following are intangible resources? Which are tangible?
(A) The view of mount Wilson in California and (E) Clean air
6) What kind of future value is implied by the statement "Extinction is forever"? Discuss how we might approach providing economic analysis for extinction.
After the loss of resources needed, there will be no profit and no value to the resource anymore. We might approach providing economic analysis for extinction based on whether the organism provides ecological services or not for each organism.
7) Which of the following can be thought of as commons in the sense meant by Garret Hardin?
(A) Tuna fisheries in the open ocean and (B) Catfish in artificial water ponds
Commons-Land owned publicly, with public access for private uses
Direct Costs-Costs carried by the producer in obtaining, processing and distributing a product
Environmental Economics-Is about how to persuade people, organizations and society to act in a way that benefits the environment
Externality-a.k.a indirect cost, something that is not recognized by producers as part of the cost or benefit
Indirect Cost- a.k.What is meant by the term the tragedy of the commons? Which of the following are the result of this tragedy?a externality, something that is not recognized by producers as part of the cost or benefit
Intangible Factor-A factor you cannot touch directly, but is valued.
Natural Capital-Ecological systems that provide benefits
Policy Instruments-What people do, what people can do, and how people do it
Public-Service Functions-A complicating factor in maintaining clean air, soil and water, and sustaining renewable resources is that ecosystems do these without our help.
Risk-Benefit Analysis-Riskiness of a present action in terms of possible outcomes is weighed against the benefit.
Tangible Factor-A factor you can touch,buy and sell.
QUESTIONS
1) What is meant by the term the tragedy of the commons? Which of the following are the result of this tragedy?
The tragedy of the commons is the depletion of a shared resource by individuals, acting independently and rationally according to each one's self-interest, despite their understanding that depleting the common resource is contrary to the group's long-term best interests. (A) The fate of California condor
2) What is meant by risk-benefit analysis?
Risk-benefit analysis is weighing the riskiness of an action to the benefit of the action.
3) Cherry and walnut are valuable woods used to make fine furniture. Basing your decision on the information in the following table, which would you invest in?
(A) Cherry plantation
4) Bird flu is spread in part by migrating wild birds. How would you put a value on...
(A) The continuing existence of one species of these wild birds... Base it off of how popular the bird is to everyone
(B) Domestic chickens important for food but also a major source of the disease ... Very expensive
(C) Control of the disease for human health? ... How much the disease has spread and how deadly it is
5) Which of the following are intangible resources? Which are tangible?
(A) The view of mount Wilson in California and (E) Clean air
6) What kind of future value is implied by the statement "Extinction is forever"? Discuss how we might approach providing economic analysis for extinction.
After the loss of resources needed, there will be no profit and no value to the resource anymore. We might approach providing economic analysis for extinction based on whether the organism provides ecological services or not for each organism.
7) Which of the following can be thought of as commons in the sense meant by Garret Hardin?
(A) Tuna fisheries in the open ocean and (B) Catfish in artificial water ponds