Introduction to envirmental economics and natural resource economics

Question 1

What is Enviromental Economics?

Answer 1

Field of economics that focuses on the effects on enviromental policies and regulations and its effect on the enviroment. It fopcuses on the pollution problems, how can policy change that and what are the costs and benefits involved.

Question 2

What is Natural resource Economics?

Answer 2

Field of economics that focused on the demand, supply and allocation of earths natural resources. This field focuses on understanding how they are extracted, used and how their explotaition affects economy, enviroment and the society as a whole. This is traditionally related to the governing of resources of the common-pool natural resources

Question 3

What is ecological economy?

Answer 3

Science centerd economic system that take into account the impact of human activities on the enviroment. It aims to promote sustainability and protect natural resources while still allowing for economic growth and development. It focuses on the study of natural capital and the ecosystem godds and services that flow from it.

Question 4

What is natural capital?

Answer 4

It is the stock of natural resources together with the components and structural relations ike decomposition and mineralization) serve as the foundations of life on earth. From the stock of natural capital results the harvest of natural resources and ecosystem services.

Question 5

What does Sustainability mean in the economics sense?

Answer 5

It refers to the communities control and prudent use of natural, human, constructed and cultural capital so that it fosters economic security, social and political democracy and ecological integrity.

Question 6

Define Economics

Answer 6

The study of how scarce resources, goods and services are allocated among competing uses.

Question 7

Define Scarcity

Answer 7

It is the concept of not having enough i.e, havinf limited resources and infinite wishes. This means that not all wishes can be attained at the same time.

Question 8

Define Opportunity cost

Answer 8

When a scarce resource, good or service is allocated, the net value of the next best choice is forgone or passed. This value is measured in monetary terms. This can be a purchase decision, and investment decision etc.

Question 9

Rational Choice

Answer 9

it is one of the dominant microeconomic theory. a Choice is consider rational if its aligned with the objecties and preferences of the individual. This is dependant upon constraints such as price income and information. A choice is considered to be rational when the net benefit is higher than the opportunity cost.

Question 10

Economic Rationality

Answer 10

just as a rational choice, it occurs when the benefits of the choice taken yield a benefit that exceed the opportunity cost.

Question 11

Production of possibles frontier and Law of increasing Opportunity Cost

Answer 11

Production of possibles frontier refers to the maximum production output and economy is able to get given a set of reosurces (land, labour and capital) this inward curving shape compares the outputs of the production of goods or services given the choices made. When a missuse of resources exists like discrimination or low investments from low bankability, the production output is inside of the curve instead of on it. The Law of increasing opportunity costs refers to the increased opportunity cost of each additional unit in comparison with the preceding unit. this occcurs as a result of an increasingly speccialized society.