Environmental Economics

Question 1

Goods

Answer 1

Resources that are produced/manufactured and ultimately bought by customers

Question 2

Services

Answer 2

Work done for others, usually a business

Question 3

Subsistence Economy

Answer 3

Oldest form of economy where people produce what they need on the daily. No trade, no bartering.

Question 4

Capitalist Market Economy

Answer 4

Buyers and sellers directly decide what goods and services are produced and everything associated with those goods and services. (USA)

Question 5

Centrally planned economy

Answer 5

Government decides all aspect of goods and services production. Known as socialism. They also decide how to distribute resources.

Question 6

Mixed Economies

Answer 6

A hybrid of capitalist and centrally planned (socialism) markets where people are free to decide how to use resources under government constraints.

Question 7

In a mixed market economy, the government has 5 main roles.

Answer 7

Eliminate unfair advantages by monopolies
Provide social services for people (health care, defense, education)
Intervene for natural disaster (social disasters too)
Manage the commons
Mitigate pollution

Question 8

Modern Economic Theory: Classical Economics

Answer 8

The ‘father’ of Economic theory is Adam Smith who stated that if you allow everyone to be selfish with their money, the whole society is benefitted.

The market place will theoretically run itself, guided by an ‘invisible hand’

Question 9

Modern Economic Theory: Neoclassical Economics

Answer 9

Takes into consideration psychological factors that go into buying and selling. Buyers want the lowest prices. Sellers want the highest prices. Gives birth to supply and demand

Opened up because of TV

Question 10

Economics

Answer 10

The study of how people use resources to provide goods and services.