Week 2: Notes (Page 1-2) Part 1

Question 1

Define “Natural Capital.”

Answer 1

Natural capital is the stock of natural resources, such as forests, water, and clean air, that the Earth provides, which humans rely on for survival and well-being.

Question 2

What is deforestation?

Answer 2

Deforestation is the clearing or thinning of forests by humans to make land available for agriculture, urban development, or other uses, often leading to environmental damage.

Question 3

What change in debt handling occurred in ancient civilizations when it became unbearable?

Answer 3

Debt was often canceled to give a clean slate for country development.

Question 4

Why is deforestation often linked to violence in communities dependent on forests?

Answer 4

When communities rely on forests for survival, deforestation removes their means of living, creating conflict and desperation for resources.

Question 5

Who primarily drives deforestation in regions like the Amazon?

A) Local workers

B) Small businesses

C) Large corporations and agribusinesses

D) Government entities

Answer 5

C

Question 6

What metaphor is often used to describe the Amazon’s role in supporting life?

A) The heart of South America
B) The breadbasket of the world
C) The earth’s stomach
D) The lungs of America

Answer 6

D

Question 7

True or False

Civilization was able to survive without damaging the Earth’s natural capital until the 1980s.

Answer 7

Answer: True.

Explanation: Before the 1980s, human activity was less intense, and the Earth’s ecosystems were better able to regenerate, allowing civilizations to survive without significant environmental degradation.

Question 8

True or False

Cutting down a forest and investing the money in financial markets has no negative impact on the real world.

Answer 8

False.

Explanation: While some economists argue that money can be reinvested, the loss of a forest impacts ecosystems, biodiversity, and climate. Money grows in value, but environmental losses are often irreversible.

Question 9

Yes or No

Does the concept of “debt cancellation” still apply as it did in ancient times, when debt became unbearable?

Answer 9

Answer: No.
Explanation: Debt is now held not only by states but also by private individuals and companies, making it harder to erase without affecting large parts of society.

Question 10

Yes or No

Is the power of private investors more influential in the modern economy than in ancient economies?

Answer 10

Answer: Yes.
Explanation: Private investors have significant influence over resources and policies today, often surpassing that of governments, which shapes economies globally.

Question 11

How does the ancient hunter mentality relate to modern attitudes toward resources like the stock market?

Answer 11

Ancient hunters believed another herd would always be over the hill, similar to how modern society believes there will always be more resources or profit opportunities, reflecting a continuous expectation of growth and abundance.

Question 12

Explain why large corporations, rather than local workers, are primarily responsible for deforestation in places like the Amazon.

Answer 12

Large corporations drive deforestation by clearing vast areas for agriculture and industry, while local workers are often caught by authorities despite not being the main cause.

The pressure to produce and profit leads corporations to exploit forests on a much larger scale than individuals would.

Question 13

Mix and Match
Match each term with its description:

1. Natural Capital
2. Deforestation
3. Debt Cancellation
4. Private Investors

A) Clearing of forests for human use.
B) Resources provided by nature, such as forests and water.
C) Forgiving debts in ancient times to start anew.
D) Individuals or companies with significant financial influence.

Answer 13

1 - B
2 - A
3 - C
4 - D