chapters 1 and 2

Question 1

future societies

Answer 1

resource scarcity and accumulating pollutants

Question 2

examples of resource scarcity and accumulating pollutants

Answer 2

climate change:

• energy is radiated back into space and ghg trap some of that energy
• countries that produce the least emissions will be hit the hardest

water accessibility:
- by 2025, 2/3 of the worlds population will live in severe water stress areas

Question 3

most important incentive in any competitive market

Answer 3

price

Question 4

positive feedback loop

Answer 4

secondary effects that reinforce the basic trend

increase in something, affects something, leads to an even higher increase

Question 5

negative feedback loop

Answer 5

secondary effects that reinforce the basic trend

some deviation occurs from the optimal point and it triggers a natural response to bring it back to the optimal point

Question 6

environmental v ecological

Answer 6

environmental: environment is a subset of the economy
ecological: economy is a subset of the environment

Question 7

why does entropy increase

Answer 7

we are demanding more energy therefore the amount of energy unavailable, that we are currently using, will increase

Question 8

economic rent

Answer 8

ant pmt to a factor of production in excess of the cost needed to bring that factor into production
short run: producer surplus = profit + rent
long run: long run profits / rent = 0

Question 9

scarcity rent

Answer 9

in this class however, competition does not eliminate that PS

Question 10

for market allocations of commodities that cause pollution, if you stay at MCp

Answer 10

output is too high
too much pollution
prices are too low
no incentive to change if costs are externalized 
recycling waste is discouraged

Question 11

open access

Answer 11

resource will always be over exploited

scarcity rent is dissipated, no one appropriates it so it is lost

Question 12

monopoly

Answer 12

MB > MC
too little supply at too high a price
man PS rather than ES