Economic system

Question 1

When it comes to the post industrial shift of economies

Answer 1

some countries are still at the beginning. Their shift will happen differently then ours
(Already moving towards the city, but not because of job availability)

Question 2

Most important part is the …. (economic system)

Answer 2

physical resource chain

Question 3

Important factors for the resource chain

Answer 3

• resources are a limiting factor to growth
• “real” prices (so including environmental effects), tax, etc
• Ability to substitute is important to continue growth

Question 4

… of resources is …. (economic system)

Answer 4

importing

displacing the problem

Question 5

unless society and income stabelize

Answer 5

there is a chance it will lead to overshoot and collapse

Question 6

Some of the environmental pollution can be solved by

Answer 6

cleaning and treating welfare diseases

Question 7

3 ways to prevent doomsday scenario

Answer 7

1) a backstop resource that can substitute and has unlimited supply
2) a technology that can do economic activity at vanishing resources
3) change lifestyle

Question 8

weak sustainability

Answer 8

complete substitution by technology

Question 9

strong sustainability

Answer 9

limited substitution options. (Must be mostly done by using resources responsible and efficient.)

Question 10

3 factors for a strong SD community (economic)

Answer 10

• resilience
• efficiency
• sufficiency

Question 11

Economic growth loop by smit

Answer 11

Growth of income -> specialisation -> growth of market -> growth of income -> etc.

Question 12

Malthus … with the economic growth loop created by smit because

Answer 12

disagreed

the fact that resources were finite was not taken into account

Question 13

Malthus did not take the power of … into account in his model, ….

Answer 13

technology and money.

Yield would increase and population growth rate would decrease. (He only saw overexploitation and collapse)

Question 14

the determinant of economic growth

Answer 14

technology

Question 15

No longer is the determinant of economic growth

Answer 15

• resource limits
• capital accumulation
• labour substitution

Question 16

Input/output tables (economic)

Answer 16

primary inputs are labor, capital and intermediate deliveries.

Question 17

Intermediate deliveries (economic)

Answer 17

they will get converted to something that is final demand

Question 18

investments in technologies are often based on

Answer 18

pay back period

Question 19

3 types of potential (economic)

Answer 19

• theoretical
• technical
• economic

Question 20

Transaction costs

Answer 20

costs from doing research, surveying, maintenance, etc.

Are often not taken into account in installation calculations

Question 21

Why are efficiency investments often not made?

Answer 21

• Too long pbp

- Too high transaction costs

Question 22

GDP

Answer 22

gross domestic product

Question 23

Why is GDP a bad welfare indicator?

Answer 23

1) it includes expenses like military and cleaning pollution that say nothing about wellbeing
2) it does not include stocks like resources, therefore depletion and future effects are not in the GDP
3) it excludes trade in products (leading to underestimation)
4) it excludes household activities that are part of life

Question 24

The political system needs to change

Answer 24

pro actively

Question 25

sustainability issues are often about (economics)

Answer 25

behavior of humans in the face of scarcity

Question 26

economics is expanding on it's topics and methods to include things like...

Answer 26

resource management and other environmental topics

Question 27

limits to growth

Answer 27

the limits will show up through depletion and pollution

Question 28

New growth scenario's show (economics)

Answer 28

scenarios of overshoot and collapse as well as stabilization

Question 29

In the growth scenario's, we are missing 2 things:

Answer 29

- influence of price | - influence of technologies

Question 30

Influence of price

Answer 30

when prices rise, we will get smarter | time for adaptation and finding alternatives that will have lower prices

Question 31

Economics from system perspective

Answer 31

population and productivity loop

Question 32

Economist think

Answer 32

that economic growth is the most important thing needed to live

Question 33

in science, economy is seen as

Answer 33

a part whose exergy can be used

Question 34

alternative view on economy

Answer 34

monetary value is the most important part of economy, with industry and services at it's core. (all other parts like the financial system, ecosystem services etc. don't play a role)

Question 35

Commercializing household activities

Answer 35

would contribute to economic growth

Question 36

shadow economy

Answer 36

- can add a large part to the economy | - is illegal

Question 37

A high shadow economy

Answer 37

is not good because it means that a large part of the transactions are all illegal. (so no tax is payed...)

Question 38

The size of ecosystem loss and home farming (economic)

Answer 38

are both around the size of global GDP

Question 39

GDP is

Answer 39

what we add in terms of value to what nature provides for free.

Question 40

GDP is increased by

Answer 40

- labor - knowledge - entrepreneurial skill

Question 41

nature is never discussed as a (economics)

Answer 41

a source of resources or as a sink

Question 42

all official institutions expect (economics)

Answer 42

a doubling of GDP of the next 20 years

Question 43

Recipe for economic growth

Answer 43

- scaling up (learning rate)

Question 44

main point of R&D

Answer 44

reducing labor needed for creating of products | R&D is hardly ever about energy and resource input because the largest costs come from labor

Question 45

A theory says that sustainable growth can be reached (economic)

Answer 45

through working less and having more time to spend money | higher consumption can lead to more sustainability problems

Question 46

From money to physical materials | monetary and physical flows

Answer 46

- capital resource substitution | - input/output formalism

Question 47

capital resource substitution

Answer 47

a function where capital and labor can replace eachother

Question 48

input/output formalism

Answer 48

method where you want to account for the fact that when you buy something, the energy use from the whole economy can be analyzed for that product