Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Environmental Economics > Midterm > Flashcards

Midterm Flashcards

1
Q

Explain Circular Flow

A
  • neoclassical economics
  • model depicting how money flows through the economy. –consisting only of households and firms.
  • Money flows to workers in the form of wages and money flows back to firms in exchange for products.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Define/explain neoclassical Economics

A
  • called conventional economics
  • supply and demand
  • tries to be positive (describes reality)
  • not normative (doesnt say what should be done)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Define Welfare Economics

A
  • normative (describes reality)
  • an extension of neoclassical economics
  • concerned with well-being and distribution (equity)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Define environmental economics

A

Neoclassical economics that accounts for emissions or wastes during production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Define resource Economics

A

Neoclassical economics

-accounts for the depletion and optimal use of renewable resources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Define Microeconomics

A

individual and business decisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Define Macroeconomics

A

Country and government decisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is behavioural economics

A

letting the data describe human behaviour

-not theory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Explain Production

A
  • process of inputs transformed into goods/investment

- as durable, human, intellectual or social capital

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Explain consumption

A

using good/services to satisfy needs and wants

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Explain consumption

A

using good/services to satisfy needs and wants

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the characteristics of ecological economics

A
  1. strong sustainability
  2. Limits to growth
  3. Human Behavior
  4. Equity
  5. Interdisciplinarity
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Explain strong sustainability

A

Human capital cannot substitute fro natural capital (normative)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Explain limits to growth

A

the law of thermodynamics limit the growth we can have “development” is a better idea than “growth”

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Explain human behaviour as a characteristic of ecological economics

A

We are not just “rational actors” or selfish optimizers, we can derive happiness from a variety of sources

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Explain equity as a characteristic of ecological economics

A

consider the distribution of impacts in present (intergenerational) and future generations (intergenerational)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Explain interdisciplinary as a characteristic of ecological economics

A

complex problems require insights from multiple disciplines (or transdisciplinary)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is the growth paradigm

A

-One direction is: higher GDP =Higher welfare per person

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is Human Based Capital

A

people, machines, factories

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Explain natural capital

A

the ways nature powers production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is an example of a flow pollutant

A

Noise

-High absorptive capacity

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Give an example and define of a CAC

A

Criteria air pollutants

-CO, NOx, O3, SOx, PM10, PM2.5, Pb, VOCs,

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Give examples of GHGs

A

CO2, CH4, O3, N2O, Halocarbons (CFCs)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Give examples of ozone depleting pollutants

A

CFCs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Give examples of Water pollutants

A

SO2, NH4, N/P, heavy metals, pesticides

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Give examples of POPS

A

DDT, PCBs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Describe using oil from a pipeline using terms such as “Cumulative/stock”, “episodic”, “local”, “non-point source”, and “global” you can choose 2

A

Global and cumulative/stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Describe a marine oil spill from a tanker using terms such as “Cumulative/stock”, “episodic”, “local”, “non-point source”, and “global” you can choose 2

A

local and episodic (Also stock pollutant)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is GNP

A

Gross NAtional Product

  • value of output
  • produced by domestically owned factories
  • This is regardless of where production occurs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

True or false: GNP only cares about where the factories are owned and not where production occurs

A

true

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What is GDP

A

Gross Domestic product

  • value of output
  • produced by factories in the domestic economy
  • equal to the sum of all the factor incomes arising in the domestic economy
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What is the equation for GDP

A

GDP = private consumption + gross investment + government spending + (exports – imports)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

What is the equation for GDP

A

GDP = private consumption + gross investment + government spending + (exports – imports)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What are some arguments people may say in favour of growing GDP

A
  • Reduces Poverty
  • Increases literacy
  • reduces unemployment
  • slows population growth (reduces fertility rates)
  • Reduces environmental degradation
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Whats is an EKC

A

An Environmental Kuznets Curve
-Looks like a hill where per cap income (X) increases environmental degradation (y) then hits a turning point and starts to decrease env deg

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Explanations for EKC

A
  • emissions increase as a country industrializes
  • then they can afford more efficient technologies
  • citizens develop “pro-env” values
  • citizens vote for pro-env govs
  • gov puts in place in laws institutions that are pro-env
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

True or false: EKC may depend on scale of pollution

A

true

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

What does GDP not account for

A
  • resource depletion
  • env deg
  • equity/distribution
  • social probs (crime)
  • non-market services (clean air)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

What types of capital are there

A
  • physical
  • intellectual
  • human
  • natural
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

Describe weak sustainability

A
  • natural and human capital are perfect subs
  • technology will fix our problems
  • deal with env issues as needed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

What is strong sustainability

A

-Both natural and human capital compliment are needed and each other

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

What is strong sustainability

A

-Both natural and human capital are needed and compliment each other

43
Q

What is strong sustainability

A
  • Both natural and human capital are needed and compliment each other
  • transformation, and reassessment of values and lifestyle
  • integrated holistic approach
44
Q

What is strong sustainability

A
  • Both natural and human capital are needed and compliment each other
  • transformation, and reassessment of values and lifestyle
  • integrated holistic approach
45
Q

Would you consider this quose weak or strong sustainability?

“meet the needs of the present without compromising the ability of those in future generations to meet their own needs

A

Weak

46
Q

Would you consider this quote weak or strong sustainability?

““each generation should leave water, air, and soil resources as pure and unpolluted as when it came on the earth”

A

Stong

47
Q

What are Daly’s steady state principles

A
  1. Renewable resources
  2. Nonrenewable resources
  3. Emissions dont exceed assimilative capacity
  4. limit scale of human activity
  5. focus on qualitative growth
48
Q

What are some alternatives to GDP

A
  • Genuine Progress Indicator (GPI)

- Gross National Happiness

49
Q

Explain GPI

A

Genuine Progress Indicator

Considers:

  • Income distribution
  • Volunteer Work
  • Family Breakdown
  • Crime
  • Resource Depletion
  • Pollution
  • Loss of farmlands/wetlands
50
Q

Define the primary assumptions of demand in neoclassical economics

A
  1. people are rational (have established preferences for different behaviours and products)
  2. individuals act to maximize utility (firms to maximize profit)
  3. Perfect information (consumers know all they need to know about all available options)
  4. No costs.benefits are “external”
51
Q

Define the primary assumptions of supply in neoclassical economics

A
  1. perfect competition among sellers (no barriers to entry)

2. No transaction costs (costs involved in reaching and implementing an agreement )

52
Q

Define Utility

A
  • Human satisfaction or well-being

- Typically measured as willingness-to-pay (WTP)

53
Q

Define own-price elasticity

A

Change in quantity demanded resulting from price change (typically a negative number)

54
Q

How would you calculate own-price elasticity

A
  • unit free
  • %delta quantity demanded divided by %delta price
  • E=(deltaQ/Q)/(delta P/P)
55
Q

What are complements in demand

A

Two goods used together

-i.e. cherios and milk

56
Q

What are substitutes in demand

A

two goods that can be used as subs for eachother

-milk and almond milk

57
Q

What is short run supply

A

period of time which a firm is unable to change at least one of its inputs

58
Q

What is long run supply

A

the period of time during which a firm is able to change all of its inputs (capital and labour)

59
Q

What are total costs

A

costs for all units produced so far

60
Q

What are marginal costs

A

additional costs to produce on more unit

61
Q

What is the law of supply

A

as the price of a good or service increases, suppliers will choose to offer more of it, all things being equal

62
Q

Define Marginal (and how it affects behavior)

A

Refers to the ‘next’ unit of supply and demand

63
Q

What is WTP

A

how much youre willing to give up to obtain a good (function of utility and income)
-measures consumer value

64
Q

True or False: a demand curve, MWTP and marginal benefit curve are all the same thing

A

True

65
Q

What are some issues with WTP

A
  • Based on wealth or income (ability to pay)
  • Challenges of monetization
  • Inherent uncertainty
  • `Preferences may be unknown, and can change
66
Q

What is the law of demand

A

They have an inverse relationship (as price falls quantity demand will rise

67
Q

What are the main reasons for the law of demand

A
  1. You consume more of a good when its cheaper

2. decreasing marginal utility: as you get more of a good you value the next (marginal) unit less

68
Q

What does it mean if the price is elastic

A

quantity demanded changes a lot as price changes

69
Q

What does it mean when the price is inelastic

A

quantity demanded changes little as price changes

70
Q

What are opportunity cost

A

the value of the best foregone alternative

71
Q

What are social costs

A

the total costs (impacts) incurred by all agents affects (including externalities)

72
Q

What are social costs

A

the total costs (impacts) incurred by all agents affects (including externalities)

73
Q

What are some things that cause supply curves to shift

A
  • technology
  • # of sellers
  • Input prices
  • Taxes and subsidies
  • expectations of costs
74
Q

What is the law of supply

A

as price of a good/service increases, suppliers will choose to offer more of it

75
Q

What is the Law of demand

A

quantity purchased varies inversely with price; the higher the price, the lower the quantity demanded

76
Q

Explain market equilibrium

A
  • everyone is happy

- no excess demand or supply

77
Q

Explain consumer surplus

A

difference between what consumers are willing to pay and what they actually pay

78
Q

Explain producer surplus

A

difference between amount a producer receives and the minimum amount the producer is willing to accept

79
Q

Explain total welfare

A

The sum of consumer and producer surplus

80
Q

Is it called a surplus or shortage when the price is too low

A

SHORTAGE

81
Q

What is deadweight loss

A

loss of economic efficiency that can occur when eq for a good /service is not achieved

82
Q

Is it called a surplus or shortage when the price is too low

A

SHORTAGE

83
Q

What does Pareto efficient mean?

A

economically efficient

84
Q

what is coase theorem

A

assigning and enforcing property rights to correct for an externality

85
Q

what is public goods

A
  • pay for it with taxes
  • cant exclude anyone
  • i.e. lighthouses and national parks
86
Q

What is positive externality

A

producing or consuming activity creates a benefit to a third party

  • (good home maintenance increasing neighborhood property values)
87
Q

How do you correct for a negative externality

A

you decrease the quantity and increase price to bring it back to eq

88
Q

How do you internalize an externality

A
  1. put a price on it

2. assign property right (coase theorem)

89
Q

What is a pigouvian tax

A

a tax that reflects the externality (this makes the private costs = to social costs)

90
Q

What are some issues with a Pigouvian Tax

A
  • setting the tax at the right level to achieve desired outcome
  • equity concerns
  • politically difficult
  • the price is certain but the outcome isnt
91
Q

What are the key assumptions of Coase Theorem

A
  • clear and enforced property rights
  • low/zero transaction costs
  • no wealth/income
  • transparent information on costs and benefits externality
92
Q

What is the trickiest part of the coase theorem

A

efficient allocation of resources doesnt depend on who receives property rights

93
Q

Define Excludable

A

it is possible to exclude others from consuming

94
Q

Define Rival

A

use of the good by one person detracts from use by others

95
Q

What are some public policies to address the tragedy of the commons `

A
  1. assign property rights
  2. pigouvian tax
  3. establish coercive laws (i.e. seasonal fishing)
  4. develop self gov (i.e. fisheries with voluntary limits)
96
Q

What are they types of market failure

A
  1. externality
  2. common property
  3. public good
97
Q

What are they types of market failure

A
  1. externality
  2. common property
  3. public good
98
Q

explain cost benefit analysis (CBA)

A

a way of valuing costs and benefits in order to choose the one with the highest net benefit (NPV) and highest ratio of benefits to costs (BCR)
-putting costs/bens in the same units (i.e. 2015 dollars)

99
Q

What is a discount rate

A

Thediscount rateis arateused to convert future economicvalue into presenteconomicvalue.

100
Q

why use discounting

A
  1. time value of money (invested today and earn later)

2. pure time preference (people are biased towards the present)

101
Q

What is the difference between compounding and discounting

A

compounding = future value of present money

  1. discounting = present value of future money
102
Q

What is the difference between compounding and discounting

A

compounding = future value of present money

  1. discounting = present value of future money
103
Q

What are the steps of a cost benifit analysis

A
  1. specify project
  2. determine inputs and outputs
  3. value non market costs and benefits in monetary terms
  4. compare (convert everything to equivalents, apply decision rule, sensitivity analysis, recommend)
104
Q

What is a social discount rate

A

discount all future costs and benefits to present (same units )

Environmental Economics (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions