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16 Cards in this Set
- Front
- Back
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Distinguish between nature goods and services.
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A good is a material object with the ability to provide a service. This service satisfies a particular human need.
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Give an example of a nature good and service.
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For instance, a tree as a good provides multiple services like shade, oxygen, wood, etc. The air provides services like oxygen for breathing, space for various emissions, etc.
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How are human needs perceived?
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Human needs are perceived individually.
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How can nature goods be used?
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Nature goods can be used by human beings as consumption goods (to satisfy individual needs) and they can also serve as production factors in an economy.
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What happens when the supply of a good becomes scarce?
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It becomes an economic good.
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Why might nature goods become scarce?
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a) high pressure from using the accessible supply for satisfying one kind of need
b) use of a given good for satisfying alternative needs that exclude each other |
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Explain conflict of interests (competition)
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Competing for the good or for how to use it.
e.g. fishermen wanting to fish a small pond or deciding how to use a certain piece of land (protected wildlife preserve, protected national park, agricultural area, waste disposal, etc) |
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How are nature goods often considered?
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They are considered as so-called public goods (opposite of private goods).
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What is the first division of goods?
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see page 25, don't get
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What are private (pure) goods.
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Goods excluded from consumption and people compete for them.
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What are public goods
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Not excluded from consumption, consumers don't compete for them
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What are externalities?
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A relation between two or more economic subjects, where one subject with their production or consumption activity affects production or consumption of another subject.
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What are the two types of externalities?
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Negative - subject causes side effects and does not bare the costs of the action
Positive - the subject causes side effects and does not get the benefits of the action while others do |
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What is control costs on environmental degradation?
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Money spent to prevent or restrict the development of environmental factors and to restrict the chance of negative impacts on the relevant environmental elements.
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What is the environmental burden on economy?
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The sum of economic damage from environmental degradation and control costs.
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What do property rights define?
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They define rules for owning a good and for authorization to use it.
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