Economics and Environment Quiz

The environment provides resources like raw materials and energy for production, absorbs waste, and offers recreational and aesthetic benefits.

Costs or benefits arising from economic activities that affect third parties but are not reflected in market prices. Examples include pollution, deforestation, and climate change.

The additional revenue generated by selling one more unit of a product.

The additional cost incurred by producing one more unit of a product.

A tax levied on companies based on their pollution levels, encouraging them to reduce emissions.

Goods that are both exclusive, meaning only those paying for them can use them, and rivalrous, meaning one person's use prevents another's. Examples include food, clothing, and cars.

The concept that resource productivity can increase over time, meaning less input is required to produce the same output.

The total amount of goods and services produced by an economy, considering both population growth and individual consumption levels.

The process by which governments identify, analyze, and choose solutions for public problems.

These are the specific actions governments take to address public problems.

Government intervention is needed when the market fails to provide efficient or equitable outcomes.

Situations where individuals or groups fail to act in ways that benefit the whole community, leading to inefficient outcomes.

Policies designed to encourage the adoption of sustainable technologies and practices.

Policies that support research and development of cleaner technologies.

Policies must align their goals, actions, and instruments to achieve a consistent and effective outcome.

Governments have a responsibility to provide essential services to citizens.

Resources that can be replenished naturally over time, like forests, solar energy, and fish stocks.

Resources that are finite and cannot be replenished at a rate comparable to their consumption, such as fossil fuels and minerals.

A systematic approach to evaluating the effectiveness of government actions, including legislation, regulations, and programs.

The specific results or outputs produced by a government program or policy. For example, the number of new roads built by a transportation program.

The larger impacts or consequences of a government program on society. For example, the improved safety and reduced travel time due to new roads.

The process of identifying and analyzing problems affecting human well-being in society.

The idea that public policy is shaped not only by the government but also by various actors, institutions, and their interactions.

The dynamic, ever-changing environment in which government operates, influenced by public opinion, interest groups, economic conditions, and global factors.

The ability to analyze and understand the complex interactions between environmental, social, and economic systems to achieve sustainability.

Practical skills to implement policies and encourage changes in behavior or entire systems to promote sustainability.

Understanding and promoting the values of environmental ethics and the importance of sustainability.

Creative thinking and foresight to imagine and plan sustainable solutions for the future.

A combination of policy instruments, like economic incentives and regulations, used to promote environmental objectives, such as increased recycling.

When the government steps in to address market failures, such as environmental degradation, using a combination of policies and tools.

A good that is non-excludable, meaning it is difficult or impossible to prevent anyone from using it, and non-rivalrous, meaning one person's use does not prevent another's.

A decision-making approach that assumes goals, values, alternatives, information, and time are all fully known and can be rationally assessed. Seeks to maximize outcomes based on available information and preferences.

The reality that individuals are limited in their ability to be fully rational due to cognitive limitations, incomplete information, and time pressures. This leads to 'satisficing' - choosing a solution that is 'good enough' rather than maximizing outcomes.

The process of making decisions in small, incremental steps, adjusting goals and strategies as new information becomes available. This approach is often used in complex environments with uncertain outcomes.

The critique of the rational model which argues that information is frequently scarce, hard to come by, and may be unreliable. It acknowledges the difficulty in obtaining perfect knowledge and suggests that decision-makers often have to operate with limited information.

The critique of the rational model that points out that applying strict, theoretical frameworks to real-world situations can be unrealistic. It emphasizes that practical decision-making involves human factors, political considerations, and often diverges from textbook models.