Chapter 23 Environmental Economics APES

In 2011, solar energy provided electricity for how many German homes?

• less than 1 million

• 2.5 million

• 4 million

• 5 million

• more than 6 million

A social institution through which goods and services are produced, distributed, and consumed to satisfy people’s needs and wants, ideally in the most efficient way possible is a(n) ____.

• economy

• network

• capitalistic system

• market

• socialistic system

Which of the following includes services and resources produced by the earth's natural processes?

• human capital

• natural capital

• artificial capital

• manufactured capital

• development capital

Which of the following refers to tools and materials such as machinery, materials, and factories?

• human capital

• natural capital

• artificial capital

• manufactured capital

• development capital

Which of the following refers to people’s physical and mental talents that provide labor, organizational and management skills, and innovation?

• human capital

• natural capital

• artificial capital

• manufactured capital

• development capital

A free-market system operating without government interference requires that sellers ____.

• not try to take business away from their competitors

• provide all the goods and services possible

• not include all their indirect costs in the prices

• increase profits by pushing others out of business

• use all resources to their fullest

Markets do well in the production and distribution of private goods, but are not so good at ____.

• accumulating resources

• distribution of resources

• public services

• protecting sources of information

• developing strategies

Why do markets often fail at environmental protection?

• They are focused on making profits for their investors.

• They should bear no responsibility for protecting the environment.

• There is no profit to be made in protecting the environment.

• There is little agreement as to what environmental protection involves.

• They do not assign a monetary value to the benefits provided by natural capital.

The point at which the supplier's price matches what buyers are willing to pay for some quantity of a good or service is called the ____.

• demand curve

• market price equilibrium point

• supply curve

• price line

• market cost

The central characteristic of a high-throughput economy is that it ____.

• generates large amounts of wealth throughout the population, resulting in continued growth

• boosts economic growth by increasing the flow of matter and energy resources through the economic system

• is extremely durable, although prone to cycles of downturn followed by rapid growth

• is sustainable with slow but persistent growth and occasional periods of stagnation

• generates large amounts of wealth for a few individuals who receive tax breaks to reinvest in the economy