Week 1 Flashcards
What is the definition of economics?
The allocation and distribution of scarce resources among competing markets. Economists try to make sure the allocation is efficient, meaning no waste.
What are the main indicators of economic welfare?
- GDP (Gross Domestic Product)
- Economic growth
What is GDP?
The money value of all goods and services produced in a country over a given time period. It is divided by population (also called per capita) and it reflects economic well-being (or welfare) on average per person.
What is economic growth?
The increase in GDP/capita over time, adjusted for inflation. Typically, countries feel good with 5% increase/rate of economic growth
Problems with “GDP per capita”:
GDP per capita only takes the global average and doesn’t consider developing countries that are not as well economically. It also doesn’t reflect the environmental resources and waste.
What are planetary boundaries?
A concept that puts global limits on natural resource exploitation and pollution
What is an anthroposcene rupture?
The concept of going past our planetary boundary resources, resulting in irreversible issues.
Who coined spaceship vs frontier economy?
Kenneth E. Boulding
What is shadow pricing for carbon emissions?
Putting a price in your products for carbon emissions to prepare for future regulations
What does frontier economy mean?
The theory that we have a surplus of resources, unlimited, with no environmental resources. Reckless.
What does spaceship economy mean?
The theory that we have a very limited supply of resources, as if on a spaceship, and we need to be cautious. Responsible.
What are 3 issues that economics aims to address?
- scarcity
- sustainability
- equity
What are the 3 main indicators of environmental welfare/well-being?
- Natural resources
- Environment
- Ecosystem functions
