Chapter 2 Study Guide PDF

Chapter 2 Learning outcomes/Study guide a) Identify the key characteristics of subsistence economies, market economies, centrally planned economies, and hybrid economies Subsistence: oldest type; people get their daily needs directly from nature or their own production; they do not purchase or trad...

Chapter 2 Learning outcomes/Study guide a) Identify the key characteristics of subsistence economies, market economies, centrally planned economies, and hybrid economies Subsistence: oldest type; people get their daily needs directly from nature or their own production; they do not purchase or trade products Market economy (capitalist market): buyers and sellers interact to determine prices and production of goods and services. Government does not influence the marketplace with subsidies, taxation, or regulation. Centrally planned: Government regulates the price of goods and services and the level of production; control usually by regulation, incentives, subsidies, grants, and taxation What are we? Hybrid! Lots of examples of both forms in our economy (farm and fishery subsidies, tax breaks, social services such as social security, Medicare and Medicaid, etc., as well as of course a somewhat free market -- somewhat free because of the above subsidies, etc.) b) Explain why free markets (traditional economies) often produce incentives for actions that deplete resources or damage the environment. Raw goods produced in the free market depletes the environment. c) Compare the viewpoints of the preservationists and conservationists regarding nature's value. Preservation Wild nature should be preserved in a pristine state, No human influence Conservation Nature should be used and managed sustainably to provide the greatest benefit to the greatest number of people, timber, water, etc. may be used sustainably d) Compare the systems of anthropocentric, biocentric, and ecocentric ethics. Anthropocentrism: Ethical standing only to humans; actions are judged solely on their effects on humans Anything not providing benefit to people has no value Biocentrism: Ethical standing to all living things; actions judged based on their effects to all living things Ecocentrism: Ethical standing to entire ecosystems (biotic and abiotic factors). e) Explain the environmental justice movement. Seeks to protect natural resources for all regardless of race, gender, economic status Involved in many international treaties/negotiations on global issues. f) What is millennium ecosystem assessment? What are its objectives? It is the largest and most comprehensive scientific assessment of the health of Earth’s ecosystems Assess consequences of changes in ecosystems as it impacts human well-being Assess scientifically based actions to help conservation/sustainability of ecosystems and as they contribute to human well-being, Contributors 1,360 experts from 95 countries Board: UN, governments, NGOs, academia, business, indigenous people 1. Give some examples of ecosystem services Food, Timber, Fuel, Fresh Water, Dyes, Fiber, erosion control 2. List and some of the major finding of millennium ecosystem assessment report including human caused change in the environment and options for the future: Food production up 2.5 times, Water use doubled, Wood harvests for pulp/paper along tripled Options: Protection of nature unlikely to be priority if still seen free and limitless require environmental costs (cost of pollution, resource degradation, for example) to be considered for all economic decisions Local communities are more likely to conserve if heavily involved in decision making profits shared with local communities - ecotourism Better protection will occur if importance is recognized in Central decision-making governments/businesses Not just “environmental” sections g) What is the current monetary value of ecosystem services? Timber is generally less than one third of the total economic value. cutting down on materials or services that could become more expensive as they get scarcer or targeted by government regulation. Average of US$33 TRILLION a year! (Costanza 1997) Current estimate is $72 trillion, Most services are not taken into consideration when making economic decisions More than the GDP (gross domestic product) of all nations combined