11.20 Eco, Music, SocSci

Which of the following types of contract is MOST explicitly intergenerational?

• marriage

• rental

• will

• employment

• mortgage

Answer explanation

A will is a legal document that specifies how a person's assets will be distributed after their death, directly impacting future generations. This makes it the most explicitly intergenerational type of contract among the options.

Why does the discount rate take on an ethical dimension when applied to climate economics?

• The discount rate suggests whether to make new farmland.

• The discount rate affects what present humans leave for future humans.

• The discount rate tells whether burning coal is cost-efficient.

• The discount rate influences how corporations expand.

• The discount rate reflects how past populations felt about conservation.

Answer explanation

The discount rate is crucial in climate economics as it determines how much value we place on future generations. A lower rate implies greater concern for future humans, influencing decisions on sustainability and resource allocation.

An individual who dissaves has

• spent all they earn

• committed to the future over the present

• engaged in mutual aid

• borrowed more than they can repay

• avoided eco-negative investment

Answer explanation

An individual who dissaves typically borrows more than they can repay, as they are spending beyond their income. This indicates a reliance on debt rather than savings.

The opportunity cost of saving for future generations is

• pollution

• present spending

• past well-being

• the discount rate

• compound interest

Answer explanation

The opportunity cost of saving for future generations is present spending, as resources allocated for savings cannot be used for immediate consumption or investments that benefit the current generation.

Which of the following economic decisions falls LEAST within the field of sustainability?

• clearing or maintaining a rainforest

• buying furniture new or secondhand

• selecting a design for an automobile

• building a landfill or a recycling plant

• choosing which animal to print on a T-shirt

Answer explanation

Choosing which animal to print on a T-shirt has minimal impact on sustainability compared to the other options, which involve significant environmental and resource considerations.

To achieve true sustainability, world GDP must

• rise on a per capita basis

• fall on a global basis

• fall on a per capita basis

• rise on a global basis

• stay level on both bases

Answer explanation

To achieve true sustainability, global GDP must fall, as continuous growth can lead to resource depletion and environmental harm. A reduction in global GDP aligns with sustainable practices and ecological balance.

Which of the following figures is CLOSEST to the per-ton social cost of carbon figure used by the Biden administration?

• $250

• $100

• $200

• $50

• $150

Answer explanation

The Biden administration's social cost of carbon is estimated to be around $50 per ton, making this the closest figure among the options provided.

The Polish and Ukrainian estimates of the social cost of carbon are

• near zero

• the highest in the world

• comparable to that of Sweden

• comparable to that of the United States

• undefined by government policy

Answer explanation

The social cost of carbon estimates for Poland and Ukraine are reported to be near zero, indicating a minimal perceived economic impact from carbon emissions compared to other countries.

How does the discount rate affect estimates of the social cost of carbon?

• Higher discount rates reflect greater uncertainty.

• Lower discount rates emphasize the risk of damage to the future.

• Higher discount rates treat the future as unknowable.

• Higher discount rates represent a commitment to sustainability.

• Lower discount rates narrow the band of possible outcomes.

Answer explanation

Lower discount rates highlight the importance of future risks, as they give more weight to potential damages from climate change, thus increasing the estimated social cost of carbon.

Which of the following nations has the HIGHEST estimate of the social cost of carbon?

• China

• Sweden

• Brazil

• India

• Kenya

Answer explanation

Sweden has the highest estimate of the social cost of carbon due to its advanced environmental policies and commitment to sustainability, which reflect a higher valuation of carbon emissions compared to the other nations listed.