module65REVIEW

710

In this module, we have seen that economic analysis is essential to achieving a sustainable existence. Market economics must be balanced with different measures of wealth, productivity, and other measures of the economic status of a country. Innovative techniques are sometimes needed to promote successful economic strategies along with successful protection of the environment. Environmental and ecological economics are subfields in economics that attempt to place value on benefits offered by the natural environment, some of which are hard to quantify. Cradle-to-grave and cradle-to-cradle systems analyses are tools used to merge sustainability with life-cycle analysis. In conjunction with applying economics to sustainability efforts, regulations are sometimes used as well. This is the focus of the first part of our next module.

Module 65 AP® Review Questions

Question 1

1. How might the inclusion of an externality affect the supply and demand of a product?

  1. It will increase price and decrease quantity demanded.

  2. It will increase price and increase quantity demanded.

  3. It will decrease price and increase quantity demanded.

  4. It will decrease price and decrease quantity demanded.

  5. Price will remain the same and quantity demanded will decrease.

Question 2

2. What is NOT included in the calculation of gross domestic product?

  1. Costs of health care

  2. Government spending

  3. Spending on durable goods

  4. Earnings from investments

  5. The costs of externalities

Question 3

3. The use of cell phones in the developing world is an example of

  1. the Kuznets curve.

  2. a positive externality.

  3. natural capital.

  4. leapfrogging.

  5. a negative externality.

Question 4

4. Human capital includes

  1. the goods that humans produce.

  2. services that humans provide.

  3. human knowledge and skills.

  4. assets directly related to human survival.

  5. services and processes that use manual labor.

Question 5

5. Which is NOT a goal of a sustainable economic system?

  1. Give priority to ecosystem health.

  2. Use nonrenewable resources.

  3. Place value on ecosystems.

  4. Rely on ecosystem services rather than resource extraction.

  5. Make manufacturers responsible for the disposal of products.