Unit 5

Question 1

Stewardship:

Answer 1

• entails caring for the sacred gifts God has entrusted to our care. We have an obligation to care for the spiritual and material well-being of all.
• Problems of global scarcity and environmental pollution present an urgent call to stewardship.

Question 2

Problems leading to poverty…

Answer 2

• lack of support for rural agriculture
• only a fraction of aid money goes to developing
• rich countries aren’t sending as much aid as they used to

Question 3

Barriers to economic development…

Answer 3

• Lack of economic freedom and stability: political-economic systems in place that limit economic freedom and the individual pursuit of self-interest.
• Malnutrition
• Low levels of investment: only a small amount of income can be saved.
• Population Growth: pop. tends to be too high to be sustained by the existing levels of production growth
• Dependence on Child Labour
• Natural-Resource Intensive Production: Economic revenue is based on the exportation of limited natural resources such as coffee, bananas, sugar cane, etc.
• Debt burden: many of these nations have borrowed money from foreign banks, governments, and international institutions

Question 4

Microfinance:

Answer 4

minuscule loans to people in poverty so they have the opportunity to help themselves

Question 5

Positive economics:

Answer 5

a statement about data that contains no indication of approval or disapproval.

Question 6

Negative economics:

Answer 6

A normative statement expresses a judgment about whether a situation is desirable or undesirable.

Question 7

Carbon footprint:

Answer 7

the measure of the amount of carbon dioxide - the major human-made global warming greenhouse gas - that goes into the atmosphere as you go about your daily life.

Question 8

Externality:

Answer 8

a side effect of the production process that is experienced by a third party who does not participate, as either a consumer or a producer, in an actual market transaction related to the good

Question 9

Negative externality:

Answer 9

one that imposes some cost on a third party (ex. pollution)

Question 10

Positive externality:

Answer 10

results from a transaction that provides benefit to a third party (ex. increased value of property)

Question 11

Carbon Offsets:

Answer 11

Units that are purchased to mitigate or “offset” greenhouse gas emissions.