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Econ Exam 3
Terms in this set (12)
Five globally aggregated variables
2. Industrial Production
What's wrong with the globally aggregated variables?
1. Too much aggregation
2. Ignoring market forces (increased R&D and substitution)
3. Running low on resources
Rare Earth Elements and their main use
1. Yttrium - superconductors
2. Neodymium - magnets (turbines)
3. Holmium - lasers
4. Lanthanum - batteries
Goodstein - Environment problems of poor problems (LDCs)
1. Major environmental problems
2. Can't afford to clean up
3. High population growth
4. Rich Demand, better environment.
5. Environment is a luxury good.
When two or more species reciprocally affect each other's evolution. Ex. a bee and a flower.
Income Elasticity of Demand
% change in quantity demanded / % change in income. As your budget goes up, you buy more, but a smaller % of your budget goes towards something.
< 0 = inferior good
< 1 = normal, income inelastic
> 1 = income elastic, luxury good
Bruntland Commission on Sustainable Development
1. Slow population growth
2. Help food production ("food security")
3. Improved technology (appropriate technology)
4. Resource conservation
5. Help poor people
Within a society, higher income people are happier. In a society over time, higher income does not lead to more happiness.
How to model sustainable development?
Wide spread common element, consumption to decline.
Trade & the environment World Trade Organization
Law of competitive advantage gains (more subsidies, less tariffs) from trade outweigh loss (cost to clean up pollution, purify products).
Free trade vs. environment
- Nets used for fishing vs protection of dolphins
- Health and safety loopholes
- GMOs banned by the ED
International Environmental Agreements
Whaling Treaty, Montreal Accord, Paris Agreement