Module 1 (Part 1)

Question 1

Three Pillars of Sustainability

Answer 1

Social, Economical, Environmental

Question 2

Social + Environmental

Answer 2

Equitable (SEnEq)

Question 3

Economic + Environmental

Answer 3

Viable (EEVi)

Question 4

Social + Economic

Answer 4

Bearable (SEcBear)

Question 5

an allocation of goods in an economy whereby goods cannot be
reallocated without making at least
one individual worse off

Answer 5

Pareto Efficiency

Question 6

used to evaluate social welfare

Answer 6

Pareto Efficiency

Question 7

as long as everyone is just as “satisfied” it doesn’t matter how the goods are allocated

Answer 7

Pareto efficient equilibrium

Question 8

any change will result in at least one person becoming less “happy” or
“satisfied” with their good(s)

Answer 8

Pareto Efficiency

Question 9

involves “doing the job well” without questioning if the job is worthwhile. It focuses on maximizing production given inputs and minimizing costs for a given level of output.

Answer 9

Efficiency

Question 10

Named after Vilfredo Pareto, it is achieved when no one can be made better off without making someone else worse off

Answer 10

Pareto Efficiency

Question 11

Optimal allocation of resources.

Answer 11

Efficiency in Production

Question 12

Optimal distribution of goods between consumers.

Answer 12

Efficiency in Exchange

Question 13

Balanced interactions between production and distribution.

Answer 13

Efficiency in the Interface Between Production and Exchange

Question 14

–allocative efficiency;
-resources are allocated to produce the combination of goods and services that maximizes
societal welfare

Answer 14

Effective resource allocation

Question 15

Commodities are distributed in a way that improving one consumer’s welfare would make another consumer worse off.

Answer 15

Efficiency in consumption

Question 16

Different allocation would not produce more of same commodities without also producing less of some other commodities (use of the same resources)

Answer 16

Efficient product mix

Question 17

True or False: Efficiency does not address sustainability, equity, or social welfare, and often overlooks long-term goals and outcomes.

Answer 17

TRUE

Question 18

True or False: Inefficiencies can arise from inequality, especially when social costs are greater than private costs.

Answer 18

True

Question 19

the exclusive authority to determine how a resource is used, whether that resource is owned by government or by individuals

Answer 19

Property Rights

Question 20

“A stronger right to own property leads to a higher level of economic
efficiency”

Answer 20

Property Rights

Question 21

Define the use of scarce resources, including the ability to transfer or restrict access based on legal rules.

Answer 21

Property Rights

Question 22

Rights to use a good or
asset for consumption and/or income
generation.

Answer 22

owner’s rights

Question 23

Right to transfer to
another party (sale, gift, bequest)

Answer 23

owner’s priviledges

Question 24

right to enter into contract with other parties (rent, pledge, mortgage, allow other to use it)

Answer 24

Limitation on the use of property

Question 25

Characteristics of Property Rights: All rights, restrictions, and penalties are clearly defined; Ownership is a prerequisite for entering into trade.

Answer 25

Completely Specified

Question 26

Four Characteristics of Property Rights

Answer 26

Completely Specified Exclusive Transferable Enforceable

Question 27

The benefits and costs associated with the property accrue only to the owner, either directly or through sale.

Answer 27

Exclusive Property Right

Question 28

Property rights can be transferred voluntarily from one owner to another, maximizing the use of resources.

Answer 28

Transferable Property Right

Question 29

Property rights are protected from involuntary encroachment, and violations are penalized appropriately.

Answer 29

Enforceable Property Right

Question 30

Individuals own the resource and have the right to sell, destroy, or use it; Refers to rights of ownership and control over resources that are exclusive to individuals or legal entities, such as corporations or partnerships. Owners have the right to use, exclude others from using, and transfer their property. Example: Personal belongings like a cellphone.

Answer 30

Private Property

Question 31

A group jointly owns and manages the resource; also known as common-pool resource; resources or assets that are collectively owned or managed by a specific group or community Example: Memberships to a golf course or fitness gym.

Answer 31

Functional/ Status

Question 32

Owned and controlled by the government, with rules for access and use. Example: National parks and highways.

Answer 32

Government/ State Property

Question 33

No one owns the resource; it can be accessed freely by anyone. Example: Oceans and fisheries.

Answer 33

Open-Access

Question 34

a market failure that occurs when individuals or entities benefit from resources or services without paying for them, leading to underfunding or overuse of those resources.

Answer 34

Free-Rider Problem

Question 35

refers to a situation in which individuals acting in their self-interest lead to a less optimal outcome for the group as a whole. It highlights the conflict between individual and collective rationality.

Answer 35

Prisoner's Dilemma

Question 36

occurs when individuals consume a shared resource to the extent that it becomes depleted. Each consumer aims to maximize their own utility, assuming others will limit their consumption; Depletion of an open access resource

Answer 36

Tragedy of the Commons