Economics and Environment Relationship
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Questions and Answers

What are the main economic functions of the environment?

  • Providing inputs to production
  • Creating technology
  • Absorbing wastes
  • Both A and D (correct)

    • Environmental externalities are always reflected in market prices.

    False

    What are the two types of cost associated with a product's production?

    Fixed cost and variable cost

    A good that has both exclusivity and rivalry is classified as a _______ good.

    <p>private</p> Signup and view all the answers

    Match the following terms with their correct definitions:

    <p>Marginal Revenue = Additional revenue from selling one more product Marginal Cost = Additional cost for producing one more product Exclusivity = Exclusion from use for non-payers Rivalness = Consumption reduces availability for others</p> Signup and view all the answers

    Which of the following factors primarily drives consumption?

    <p>Population</p> Signup and view all the answers

    Higher recycle efficiency leads to a strong argument for resource productivity.

    <p>False</p> Signup and view all the answers

    What is an example of an environmental externality?

    <p>Pollution</p> Signup and view all the answers

    Which of the following is NOT an assumption of rationality intervention?

    <p>Emotions affect decisions</p> Signup and view all the answers

    Decision-making models in public organizations are identical to those in the private sector.

    <p>False</p> Signup and view all the answers

    What do decision-makers in organizations often strive to do according to Simon's conclusion?

    <p>Satisfice</p> Signup and view all the answers

    According to the critique of the rational model, human reasoning is often affected by __________.

    <p>bias and emotion</p> Signup and view all the answers

    Match the following decision-making models to their key characteristics:

    <p>Rational Model = Focuses on means-ends efficiency Incremental Model = Uses small steps in decision-making Bounded Rationality = Recognition of cognitive and information limits Public Values = Emphasizes fairness and understanding in decisions</p> Signup and view all the answers

    Which of the following characteristics define private goods?

    <p>Excludable and rival</p> Signup and view all the answers

    Public goods are rival in consumption and excludable.

    <p>False</p> Signup and view all the answers

    What are renewable resources?

    <p>Resources that can be regenerated and do not finish if managed carefully.</p> Signup and view all the answers

    Public Policy evaluates the _____ and outcomes of government programs.

    <p>outputs</p> Signup and view all the answers

    Who proposed that Public Policy should address fundamental problems in society?

    <p>Harold Lasswell</p> Signup and view all the answers

    Harold Lasswell's approach to Public Policy is problem-centered.

    <p>True</p> Signup and view all the answers

    According to Dye, Public Policy is defined as 'whatever governments choose to do or not to _____.'

    <p>do</p> Signup and view all the answers

    Match the following aspects of Public Policy with their descriptions:

    <p>Outputs = Results of government actions Outcomes = Impacts on society Turbulent context = Dynamic environment influencing decision-making Problem-centered approach = Focuses on addressing deep-seated issues</p> Signup and view all the answers

    What is the role of context in Public Policy?

    <p>It affects how decisions are made and implemented.</p> Signup and view all the answers

    Which of the following best describes the traditional view of Public Policy?

    <p>Government-centric decisions</p> Signup and view all the answers

    Which of the following is NOT a step in the policy cycle?

    <p>Policy forecasting</p> Signup and view all the answers

    Substantive policy instruments focus solely on processes and activities.

    <p>False</p> Signup and view all the answers

    What are 'push factors' in the context of CE policies?

    <p>Support for innovation and R&amp;D</p> Signup and view all the answers

    Governments intervene when there are ________ failures.

    <p>market</p> Signup and view all the answers

    Match the following policy instrument types with their descriptions:

    <p>Substantive = Technical solutions to resolve problems Procedural = Processes needed for coordination Demand-pull = Instruments that create market demand for CE solutions Technology-push = Instruments that support innovation and R&amp;D</p> Signup and view all the answers

    Which statement best describes 'pull factors' in CE policies?

    <p>Public procurement policies favoring recycled materials</p> Signup and view all the answers

    The stick, carrot, and sermon classification of instruments indicates their degree of coerciveness.

    <p>True</p> Signup and view all the answers

    What is a key obligation of governments regarding public services?

    <p>To provide public services</p> Signup and view all the answers

    The ________ approach aims to align aims, objectives, and instruments in CE policies.

    <p>integral policy</p> Signup and view all the answers

    Which of the following best illustrates a 'carrot' type of policy instrument?

    <p>Subsidies for companies adopting sustainable practices</p> Signup and view all the answers

    What is one of the main objectives of circular economy policies?

    <p>Support repairability</p> Signup and view all the answers

    The GreenComp conceptual reference model emphasizes only one skill area: Sustainability Values.

    <p>False</p> Signup and view all the answers

    Name two policy instruments used to promote a circular economy.

    <p>Economic incentives and regulations.</p> Signup and view all the answers

    The concept of __________ refers to the ability to analyze and address the interconnected challenges of environmental, social, and economic systems.

    <p>Complexity in Sustainability</p> Signup and view all the answers

    Match the following skill areas to their descriptions:

    <p>Sustainability Values = Understanding and promoting the importance of sustainability Complexity in Sustainability = Analyzing interconnected challenges Envisioning Sustainable Futures = Creativity to imagine sustainable solutions Acting for Sustainability = Practical skills to implement policies</p> Signup and view all the answers

    Which instrument would likely be used to discourage single-use plastics?

    <p>Taxes</p> Signup and view all the answers

    Excludable goods can prevent others from using them if purchased.

    <p>True</p> Signup and view all the answers

    What is one characteristic of policy instruments in governance?

    <p>They are dynamic.</p> Signup and view all the answers

    Ownership, funding, and __________ are interconnected aspects of a public good's operation.

    <p>control</p> Signup and view all the answers

    What is a characteristic of a polyarchic control system?

    <p>Government control</p> Signup and view all the answers

    Study Notes

    Relationship Between Economics and the Environment

    • Companies use resources to produce goods and services, and households provide human resources and consume goods.
    • The environment provides inputs (raw materials, energy), absorbs waste, and creates products with utility.
    • Environmental externalities are costs or benefits, arising from economic activities affecting third parties, not reflected in market prices. Examples include pollution (air, water, soil), deforestation, climate change, and noise pollution.

    Economic Functions of the Environment

    • The environment acts as a source of raw materials and energy inputs for production.
    • It facilitates basic processing, modification, and fabrication of products.
    • It acts as a receptor for waste and residuals from these activities.
    • Recycling processes utilize secondary inputs, transforming residuals into reusable materials.
    • Consumption is driven by population and per capita consumption levels.

    Economic Values of Natural Resources

    • Use value includes direct (monetary) and indirect (recreation) uses.
    • Optional use values considers future personal use
    • Bequest value signifies future uses by generations.
    • Existence value represents preserving biodiversity.
    • Non-use value is the worth of simply conserving an area.

    Characteristics of Goods

    • Excludability: Goods' ability to prevent non-payers from consuming them.
    • Rivalrous consumption (divisibility): One person consuming the good prevents another from consuming it.
    • Private goods: Excludable and rivalrous. Examples include shoes, books, and bread.
    • Toll goods: Excludable, but non-rivalrous. Examples include toll bridges and entrance fees.
    • Public goods: Non-excludable and non-rivalrous. Examples include clean air and national defense.

    Renewable and Non-Renewable Resources

    • Renewable resources can be regenerated over time (e.g., forests, fisheries).
    • Non-renewable resources cannot be replaced (e.g., fossil fuels).

    Sustainable Yield (MSY)

    • Maximum Sustainable Yield (MSY) is the largest harvest of a renewable resource that can be taken without depleting the resource.
    • It balances the population growth rate with the harvest rate to maintain the stock.
    • Stock size, effort (amount of resources used) and yield (amount harvested), are key to determining MSY.
    • The relationship between stock size and yield is not linear, and effort past MSY may result in stock depletion.

    Tragedy of the Commons

    • Collective action failures may exist when individuals act in their self-interest, leading to overall resource depletion or degradation.

    Policy Instruments and Interventions

    • Governments may utilize regulatory, economic and information-based approaches to guide collective actions.
    • Policy can be evaluated in relation to their outcomes and impacts on society.
    • Problems are addressed through policy formulation and systemic solutions.

    Governance and Policy Cycles

    • Governments use policies to coordinate actions, address problems and create governance structures to tackle issues which are sometimes complex and dynamically changing.
    • Policy implementation needs to be consistent with the goals, objectives and targets to achieve sustainable goals and outcomes.

    Policy Cycle stages

    • Agenda-setting (creating awareness and highlighting issues).
    • Policy formulation (developing alternatives to solve problems).
    • Policy decision-making (choosing the best solution).
    • Implementation (putting the plan into action).
    • Evaluation (assessing the plan's effectiveness).

    Critical Critique of the Rational Model for Policy Decisions

    • The rational policy model assumes that decision-makers are always rational, that information is always available and that there is a clear cause and effect for policy implementation. This is often not the case in practice.

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    Relationship Between Economics and Environment PDF

    Description

    Explore the crucial interactions between economics and the environment. This quiz delves into how economic activities affect ecological systems, the concept of environmental externalities, and the economic functions that nature provides. Test your understanding of sustainable practices and the valuation of natural resources.

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