ECON 203 - Exam 1

studied byStudied by 57 People



Tags & Description

Other Subject

Studying Progress

New cards
Still learning
Almost Done
79 Terms


The study of how and why individuals and groups make decisions about the use and distribution of valuable human and nonhuman resources

Environmental economics

The application of the principles of economics to the study of how environmental resources are managed


The study of the economic performance of economies as a whole


The study of the behavior of individuals and small groups

Analytical subject

Environmental economics is one. We want not only to describe the state of the environment and changes in it, but also to understand why these conditions exist and how we might bring about improvements

Positive economics

The study of what is

Normative economics

The study of what ought to be

Analytical models

A simplified representation of reality, in the sense that it isolates and focuses on the most important elements of a situation and neglects the others

Moral approach

According to it, environmental degradation is the result of human behavior that is unethical or immoral

Profit motive

According to this view, in private enterprise economics, people are rewarded for maximizing profits

Economic incentive

Something in the economic world that leads people to channel their efforts at economic production and consumption in certain directives

Unit pricing

Identification of and labeling of items for sale with the retail price per unit, permitting easier price comparisons among similar products

Public policies

Wide range and variety of public programs and policies devoted to environmental matters, at all levels of government: local, state, regional, federal, and international

Perverse incentives

Incentives created by a policy that actually work against the overall objectives of that policy


Adequate information is required about these for effective decision-making

Public sector

The issue is effective public policy

Private sector

The issue is the bottom line of the profit-and-loss statement

Benefit-cost analysis

Primary type of public-sector analysis in environmental policy. Studied in terms of the environmental benefits they would produce, compared with the costs that are entailed


The benefits of environmental improvements are usually _____ in nature

Nonmarket valuation techniques

Useful to estimate environmental outcomes

Stratospheric ozone

The earth's protective _____ is being destroyed by chemicals devised by humans for a number of industrial purposes

Global climate change

The rise in surface temperatures of the earth stemming from the accumulation of carbon dioxide in the atmosphere


Some environmental problems are _____ simply because there is a national border between the pollution source and the resulting impacts


A term used to refer to the perceived changes that are taking place in the world economy, including the rapid growth of trade among nations, privatization of economic institutions, massive international flows of financial capital, and growth of multinational firms

Pollution havens

Places which firms move in order to have to spend less on pollution-control measures

Political policy environment

Environmental policy decisions come out of the political process


A collection of technological, legal, and social arrangements through which individuals in society seek to increase their material and spiritual well-being


Refers to all those activities that determine the quantity of goods and services that are produced and the technological and managerial means by which this production is carried out


The way in which goods and services are divided up, or distributed, among the individuals and groups that make up society


The final utilization of goods and services

Natural assets

Economies make use of these. The natural world provides these and energy inputs without which production and consumption would be impossible

Laws of nature

Processes and changes of the natural world are governed by these

Natural resource economics

The study of nature in its role as provider of raw materials

Environmental economics

The study of residuals flow and its resultant impacts in the natural world

Renewable resources

Living resources, such as fisheries and timber; they grow in time according to biological processes

Nonrenewable resources

Those for which there are no processes of replenishment—once used they are gone forever

Assimilative capacity

The ability of the natural system to accept certain pollutants and render them benign or inoffensive

Biological diversity

A resource that resides not in any one substance but in a collection of elements

Ambient quality

The quantity of pollutants in the environment, for example, the concentration of SO2 in the air over a city or the concentration of a particular chemical in the waters of a lake

Environmental quality

A term used to refer broadly to the state of the natural environment. This includes the notion of ambient quality and such things as the visual and aesthetic quality of the environment


Material that is left over after something has been produced


The portion of production or consumption residuals that is placed in the environment, sometimes directly, sometimes after treatment


The process of returning some or all of the production or consumption residuals to be used again in production or consumption


A substance, energy form, or action that, when introduced into the natural environment, results in damages from a lowering of the ambient quality level


Sometimes ______ is used to talk about water pollutants, and emissions to refer to air pollutants, but in this book these two words are used interchangeably


Some people might say that ______ results when any amount, no matter how small, of a residual has been introduced into the environment. Others hold that ______ is something that happens only when the ambient quality of the environment has been degraded enough to cause some damage


The negative impacts produced by environmental pollution on people in the form of health effects, visual degradation, and so on, and on elements of the ecosystem through disruption of ecological linkages, habitat destruction, species extinctions, and so forth

Environmental medium

Broad dimensions of the natural world that collectively constitute the environment, usually classified as land, water, and air


The location at which emissions occur, such as a factory, an automobile, or a leaking landfill