economics

Question 1

the system that brings buyers and sellers together

Answer 1

market

Question 2

an unmet demand for a product leads to innovation and substitution

Answer 2

scarcity

Question 3

increases in efficiency lower the cost leading to and increase in consumption ex: people in more efficient cars drive more

Answer 3

Jevon’s paradox

Question 4

failure of the market to account for all costs, costs not paid by people in the transaction

Answer 4

externality

Question 5

underpriced and overproduced due to high demand ex: air and water pollution

Answer 5

goods with negative externalities

Question 6

puts a cost on negative externalities

Answer 6

true cost analysis

Question 7

positive externalities, things that can’t be profitably produced, typically produced by the federal gov.

Answer 7

public good

Question 8

generally regulate pollution or manage natural resources

Answer 8

environmental policy

Question 9

mandate what can and cant be done

Answer 9

prescriptive regulations

Question 10

positive incentives to encourage action via grants, subsidies, tax credits, contracts, and permits

Answer 10

payments

Question 11

punishment for non-compliance with prescriptive regulations or taxes to increase costs and decrease behaviors

Answer 11

penalties and taxes

Question 12

the government controls action based on property designations or control of federal land

Answer 12

property rights

Question 13

cap on total pollution allowed per unit of pollution, requires a permit which can be traded on a market

Answer 13

cap and trade

Question 14

produce and disseminate information to influence behavior

Answer 14

persuasion

Question 15

EPA standards for air quality and emissions 1970

Answer 15

Clean Air Act

Question 16

EPA limits for industry or polluter category 1972

Answer 16

Clean Water Act

Question 17

EPA identifies those responsible for existing hazardous waste sites and pays to clean up when the responsible party cant 1980

Answer 17

CERCA (superfund)

Question 18

series of acts that provide protections for designated federal lands

Answer 18

Yellowstone National Park Protection act, Antiquities Act, Organic Act

Question 19

rare agreements between sovereign nations, difficult to monitor and enforce, US approval requires 3/4 senate vote

Answer 19

international agreements