Review 6 – Flashcard
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Ecology and economy are both derived from the Greek word "Oikos" meaning
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Household
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Natural capital is that which is created by
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Natural Earth processes
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Which of the following is considered human capital?
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Knowledge of history
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Which of the following is considered social capital?
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Community organization
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_______ is a nonrenewable resource
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Coal
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Renewable resources are those that
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Will always renew themselves unless we destroy them
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An example of an intangible resource is
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Capital
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The economic theory that was originally focused on how the interests and values of individuals relate to larger societal goals is the ______ economic theory
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Classical
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In economic terms, "demand" is how much of something
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People will buy at current prices
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In economic terms, "supply" is how much of something
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Is available on the market
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A(n) ________ relationship exists between supply and demand. Therefore, when supply is high, demand is _____
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Inverse; low
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Using the supply-demand graph, what happens as the price of a good or service increases?
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Demand falls and supply increases
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Price inelasticity is when _________ while price elasticity is when __________
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Consumers buy a product regardless of cost; the supply/demand curve is followed
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Political economy theory incorporates ______ while neoclassical economic theory incorporates _________
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The issues of social structures and value systems; objectivity and scientific analysis
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Which of the following is not true with respect to natural resource economics?
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Natural resource economics views ecological processes as factors outside the economic system
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When we purchase a product, the price we pay directly reflects the _____ cost of producing it. If the manufacture of the product degrades the quality of air or water, then the costs of this pollution are termed _____ costs
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Internal; external
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When a factory pollutes a river, the costs and losses that affect people downstream would be called ______ costs
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External
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Ecological economics is different from the other economic theories because it recognizes the
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Human economy as one part of a dynamic world system
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A steady-state economy would be marked by _____ resource consumption, _____ volume and _____ output
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Low; low; high-quality
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What author criticized the idea of commonly held resources in "The Tragedy of the Commons?"
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either Paul Ehrlich or Gifford Pinchot
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The management of a wild area by a group of indigenous people such as the management of wild rice beds is an example of
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The "free-rider" system
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"The Tragedy of the Commons" is based on a view that
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Open access systems can be sustained and promoted
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Which of the following is an example of an open access system?
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Cattle grazing on common woodlands and pastures in colonial New England
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Which of the following is an example of a communal property system?
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Maine lobster fishing
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The price of natural gas doubles. What would happen to the quantity of the natural gas in a market system?
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The quantity decreases because it is too expensive to produce
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In a frontier economy, there is usually a relative abundance of __________ because of the inefficiency ______________
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Natural resources; of the procedures for gaining access to resources
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Which of the following is not an effective response to resource scarcity?
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Diverting capital (money) to conventional industries
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In Limits to Growth the Club of Rome predicted that
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Economic collapse is likely if we do not reduce population growth
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The computer models published in the 1972 Limits to Growth predicted _____ in the next century
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Population and resource crashes
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In response to criticisms of Limits to Growth, a computer model was published in Beyond the Limits that
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Includes technological progress and pollution abatement
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Things like open space or clean air can be considered a resource because they are
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Valued by people
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The use of Gross National Products as an indicator of economic well-being
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Is criticized as an inaccurate measure of the quality of life
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Which of the following would not be counted as part of the Gross National Product?
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Home health care by a family member
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Which of the following indicators is incorrectly matched with the factors it takes into account?
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Gender Development Index - gender and natural resource depletion
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The most valuable component of ecosystem services is provided by
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Recreation
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In 1997, ecological economists put a price on the goods and services provided by natural systems. This estimated annual value ranged from
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$16-54 billion
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What is the name of the process the lending institution is going through in this scenario?
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Cost-benefit analysis
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The analysis
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Includes many subjective judgments
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Which of the following is not a major criticism of the type of analysis in the scenario?
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People are willing to answer questions about how much they would spend to save the Amazon rainforest
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An example of a market-based incentive for environmental protection would be
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Fees placed on certain types or volumes of a pollutant
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The function of the World Bank is to administer
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Major international development aid
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One of the highest volume and longest lasting components of landfills is ______________, which will not break down for at least ___________ years
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Electronics; 5,000
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Businesses are now willing to become "green" because
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Doing so improves their image and saves money in the end
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Environmental protection has been proven to __________ the number of available jobs because __________
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Increase; labor is usually substituted for natural resources (as in the case of recycling)
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Most job layoffs occur as a result of
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Seasonal work
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Pollution charges and emissions trading are examples of market-based mechanisms for environmental protection
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True
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The General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) agreements are primarily negotiated among the largest industrial nations. This tends to keep less-developed countries in the role of resource supplier to more developed countries
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True
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The Grammeen Bank is a microlender whose business loans assist mainly low-status women
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True
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What you choose to buy as a consumer does not really influence businesses to produce eco-friendly goods and services
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False
