SOC 220 Final Exam
With a 5% annual rate of discount, $110.25 two years from now is worth what amount today?
100 (with margin: 1)
With a 2% annual rate of discount, $12,989.186 four years from now is worth what amount one year from now?
12,240 (with margin: 100)
Consider an asset that you purchase for $52,949. Its nominal resale value after 4 years of ownership is $43,871. At that time you plan to sell it and invest the proceeds elsewhere. What is the net present cost to you of holding this asset if the nominal discount rate is 2%?
12,419
Consider an asset that you purchase for $56,672. Its nominal resale value after 4 years of ownership is $11,725. At that time you plan to sell it and invest the proceeds elsewhere. What is the net present cost to you of holding this asset if the nominal discount rate is 9%?
48,366
With a 6% annual rate of discount, $5,955.08 three years from now is worth what amount one year from now?
5,300 (with margin: 100)
Suppose I have computed the cost of carbon per mile for my car at 0.01 per mile. Assume that the interest rate is 4% and that I drive the car 15,000 miles per year. What is present value of the carbon expense for five years?
544.4843 (with margin: 0.1)
The three parts of the triple bottom line are as follows.
People, Planet, Profits
Match examples to each type of good or resource.
Private goods - pencils, sushi Common pool resources - irrigation systems Club Goods - DIRECTTV, move Pure Public goods - fire protection Mixed category - housing development
The use of a park such as Yellowstone or Arches may or may not be a rival good depending on the level of [con].
congestion
Nobel Prize winning economist Edmund Phelps opposes the idea of a Universal Basic Income (UBI) arguing that public revenue would be better directed toward increasing low-wage workers' income to a level enabling them to support themselves, which is essential for self-esteem. He further argues that a UBI would also draw (or keep) people and their children away from work, which is for many the only available avenue to personal fulfillment and to satisfying involvement in the world.
correct
In his original paper 1995 paper entitled "The Concept of Environmental Sustainability" Robert Goodland of The World Bank identified three types of sustainability. What are those three types?
environmental sustainability, economic sustainability, social sustainability
A sustainable future with far fewer jobs is consistent with human flourishing as long as people are able to obtain their basic and secondary needs from government programs and/or charitable giving
false
If people in a social-ecological system are flourishing, the system is sustainable.
false
Innovation is the spread of a technology through a society or industry.
false
One of the advantages of tradable permits is that a firm that has more licenses than it intends to use can buy even more
false
People on Easter Island were no longer able to hunt for porpoises, one of their main food staples, because they discharged too much raw sewage in the bay where the porpoises normally calved
false
Some say that a sustainable society is one that can persist over generations; in this course we consider a sustainable society to be one that can sustain human flourishing over generations.
true
The Second Principle of Justice states that: The Second Principle of Justice states that: 1) they are to be of the greatest benefit to the least-advantaged members of society, consistent with the just savings principle, and 2) offices and positions must be open to everyone under conditions of fair equality of opportunity
true
With a 4% annual rate of discount, $2,080 one year from now is worth what amount five years from now?
Between 2,400 and 2,450
Human sustainability and social sustainability are more or less the same thing.
False
Which of the following are examples of market failure?
- Climate change induced by human activities - Fishery communities near Mumbai, India - The condition of Guanabara Bay, the site of Olympic sailing events during the summer Olympics in Rio - The manufacture and sale of epi-pens - The person-to-person market for used cars
Which of the following statements are true:
- Decision making is the act of evaluating the desirability of the forecasted future and, when it falls short of our values and preferences, choosing appropriate interventions to ensure that the actual future is more desirable than the forecasted future. - Rawl's theory of justice would argue that one is not allowed to justify differences in income or organizational powers on the ground that the disadvantages of those in one position are outweighed by the greater advantages of those in another. - Immanuel Kant would argue that it would not have been morally permissible to require a small number of workers to return to the Fukushima nuclear plant after the earthquake to insure little radiation was released in order to save the lives of many people living within 20 miles of the plant. - Utilitarians would argue that pollution is unavoidable so that we must weigh the costs and benefits. They would look at the extent of pollution, ---- how many people/sentient beings are affected. They would also look at the duration --- how long the damage lasts and the certainty --- for example, what are the chances of an oil tanker spillage, and so on. - A utilitarian might argue that moving all nuclear waste to Yucca Mountain, Nevada (100 miles northwest of Las Vegas) would be morally permissible because the number of people potentially harmed is so small given the sparse population in the area.
Which of the following are examples of resilience?
- Missing few classes and making up work while having pneumonia during the winter in Iowa - Developing new skills and moving from one sector to another for work as the demand for products changes. - Adapting to climate change by planting crops that are more consistent with a warmer and drier climate.
Which of the following are examples of resilience?
- Missing little work and maintaining general health when exposed to the influenza virus - Developing new skills and moving from one sector to another for work as the demand for products changes. - Attracting new businesses in new sectors to a city or county as traditional industry moves plants overseas.
Which of the following are the characteristics of common pool resources?
- Non-excludable - Rival
Which of the following relate most prominently to intragenerational justice?
- Sacrifice of the fundamental needs of some for the sake of less central interests or mere 'wants' of others - Disproportionate distribution of benefits to the wealthy and powerful at the expense of the poor and weak - Exploitative social arrangements
Which of the following are good examples of market failures.
- The market for rural fire services in states where pay to spray contracts are illegal - Oil sales and consumption - Open access logging - The market for organic carrots with incomplete information - Climate change
The Coasean perspective does not define environmental problems in terms of externalities, but in terms of
- establishing property rights, bargaining over them, and enforcing them - ill-defined property rights
Jayson prefers $19.00 now to $20.00 one year from now but prefers $20.00 one year from now to $17.00 now. Which of the following provides the tightest correct bounds on her personal rate of discount, ?
0.05263 less than equal to ip less than equal to 0.17647
With a 2% annual rate of discount, $1,248.48 two years from now is worth what amount four periods from now?
1,298.9186 (with margin: 20)
With a 7% annual rate of discount, $1,966.1940 four years from now is worth what amount one year from now?
1,605 (with margin: 10)
Consider a piece of equipment for which the expenditure at the beginning of period 1 is $100,000. Given that this is a cost, consider it as a negative in a net revenue framework. The net revenue at the end of year 1 is $20,000 The net revenue at the end of year 2 is $30,000. The net revenue at the end of year 3 is $40,000 The net revenue at the end of year 4 is $35,000. This includes revenue from operations and sale of the used equipment. The interest rate is 4%. What is the net present value of this net revenue stream?
12,445.45665 (with margin: 100)
Consider an asset which has no initial cost but for which there is an expenditure of $10,000 at the end of the first year. The net cost at the end of year 2 is $15,000. The net cost at the end of year 3 is $20,000. With an interest rate of 6%, what is a levelized cost payment payable at the end of years 1, 2, and 3 which has the same present value as the actual cost stream at the end of period 0. The annuity factor with an interest rate of 6% and three payments is given by = 2.673
18,019.802 (with margin: 0.1)
With a 10% annual rate of discount, $266.20 three years from now is worth what amount now?
200 (with margin: 1)
Consider an asset that you purchase for $42,000. Its nominal resale value after five years of ownership is $9,000. At that time you plan to sell it and retire to a cabin on Strawberry Reservoir in Utah. What is the net present cost to you of holding this asset if the nominal discount rate is 7%
35,583.12 (with margin: 10)
With a 5% annual rate of discount, $60 three years from now is worth what amount two years ago?
47.012 (with margin: 1)
Suppose I have computed the cost of carbon per mile for my car at 0.01 per mile. Assume that the interest rate is 4% and that I drive the car 15,000 miles per year. What is present value of the carbon expense for five years? You will need to use the PV function in Excel or a financial calculator. In Excel the present value of a stream of monetary cash flows is given by -PV(rate,number of payments,payment amount) where rate is the interest rate. We enter the payment in Excel as a positive number.
544.4843 (with margin: 0.1)
Consider an asset that you purchase for $75,000. It's nomimal resale value after four years of ownership is $20,000. At that time you plan to sell it and move to an ashram in India. What is the net present value of the cost of holding this asset for the four years if the interest rate is 4%.
57,903.92 (with margin: 10)
Consider a piece of equipment for which the expenditure at the beginning of period 1 is $80,000. Given that this is a cost, consider it as a negative in a net revenue framework. The net revenue at the end of year 1 is $10,000. The net revenue at the end of year 2 is $20,000 The net revenue at the end of year 3 is $30,000. The net revenue at the end of year 4 is $40,000. This includes revenue from operations and sale of the used equipment. The interest rate is 5%. What is the net present value of this net revenue stream?
6,487.62 (with margin: 100)
Consider a piece of equipment for which the expenditure at the beginning of period 1 is $35,000 The net revenue at the end of year 1 is -$5,000. The net revenue at the end of year 2 is $20,000. The net revenue at the end of year 3 is $25,000. What is the levelized net revenue with three equal payments at the end of years 1 to 3 with an interest rate of 3%? The annuity factor with a 3% nominal discount rate and three payments is = 2.829
663.26 (with margin: 0.1)
Suppose I have computed the cost of carbon per mile for my car at 0.012 per mile. Assume that the interest rate is 4% and that I drive the car 22,000 miles per year. What is present value of the carbon expense for three years?
732.62 (with margin: 0.1)
Suppose I have computed the cost of carbon per mile for my car at 0.012 per mile. Assume that the interest rate is 4% and that I drive the car 22,000 miles per year. What is present value of the carbon expense for three years? You will need to use the PV function in Excel or a financial calculator. In Excel the present value of a stream of monetary cash flows is given by -PV(rate,number of payments,payment amount) where rate is the interest rate. We enter the payment in Excel as a positive number. You can also compute the carbon costs at the end of each year and then discount those three values back to the present.
732.62 (with margin: 0.1)
Allocate use permits that limit the amount that anyone can withdraw in a given period.
A fee on tailpipe emissions proportional to the damage done. - Pigovian Tax A fee on tailpipe emissions proportional to the damage done. - Qouta Hillary Clinton feels guilty about all the airline miles she is logging running for President and so she directs the Clinton Foundation to provide more start-up loans for small farmers in India to install biodigesters. - Carbon Offset You buy the right to release more nitrous oxide into the atmosphere from a person who previously bought that right at a government auction. - Tradeable You are tired off the run-down public parks in your town which are plagued by gang violence and noisy college students. You and some friends buy up a track of low-cost dilapidated housing and raze the buildings. - Cooperative organizing Your neighbor pays you $600 to be out of town for several weekends while he is showing his house for sale.- Somewhat well defined property rights Iowa State University buys flex fuel vehicles and uses E-85. - Subsidies to or outright purchases of "greener" processes The state of Iowa provides a tax credit for the installation of new windmills. - Subsidies to or outright purchases of "greener" processes
Deonotology
Act only according to that maxim by which you can at the same time will that it should become a universal law
Which of the following is likely to be most effective in reducing overfishing in a given area.
Allocate catch permits that limit the amount that anyone can land in a given time period.
Which of the following is likely to be most effective in reducing overuse of the Ogallala aquifer?
Allocate use permits that limit the amount that anyone can withdraw in a given period.
Consider an asset that you purchase for $55,000. Its nominal resale value after four years of ownership is $15,000. At that time you plan to sell it and move to a retirement community in Colorado Springs, CO. What is the levelized cost of holding the asset for the four year period if the annuity factor for four years at 4% is = 3.6928
Between 11,019.6 and 12,219.6
Consider an asset which has no initial cost but for which there is an expenditure of $10,400 at the end of the first year. The net cost at the end of year 2 is $20,000. With an interest rate of 4%, what is a levelized cost payment payable at the end of years 1 and 2, which has the same present value as the actual cost stream at the end of period 0. The annuity factor with an interest rate of 4% and two payments is given by = 1.886
Between 14,105.88235 and 16,105.88235
Consider an asset which has no initial cost but for which there is an expenditure of $20,000 at the end of the first year. The net cost at the end of year 2 is $15,000. With an interest rate of 3.5%, what is a levelized cost payment payable at the end of years 1 and 2, which has the same present value as the actual cost stream at the end of period 0. The annuity factor with an interest rate of 3.5% and two payments is given by = 1.9
Between 17,042.99754 and 18,042.99754
The following are examples of substitute pairs of inputs or products
Coal and natural gas Wind and solar energy Nitrogen fertilizer and manure Paper and plastic bags
Match the type of public policy for sustainability with appropriate examples.
Design Standards - regulations Subsidies - Economic Incentives Taxes - Economic Incentives Production quota - regulation Fines - economic incentives Permits that can be traded - economic incentives Effluent permits that are not tradable - regulation
Match the ways products are differentiated with examples or case
E-85 versus E-10 : Form Different usage rates on U-haul trucks depending on origin and destination of rental: place Storage of corn from harvest until later in the season when prices are higher: time Purchase of a building lot within the private unit development (PUD): possession Ownership of land that provides shares in an irrigation company - possession Organic carrots - form
Carbon dioxide released into the atmosphere as a result of human activity is a significant contributor to climate change. Climate change has both positive and negative effects on human welfare but consensus Carbon dioxide released into the atmosphere as a result of human activity is a significant contributor to climate change. Climate change has both positive and negative effects on human welfare but consensus or burned as fuel within the United States. This would reduce that source of CO2 and the overall level of CO2 emissions as consumers switch to fuels that are less carbon intensive and cut back to some degree on energy consumption.
Elimination of the production and consumption of coal as a fuel in the United States - would improve the human condition as long as the social cost of producing and consuming coal in the United States is higher than the social benefit prior the ban on its use - would not be a just solution for workers and investors in the coal industry unless some type of compensation were made for short term loses as they move to other investments and jobs - may not be an adpatable solution if a major breakthrough were made in clean coal technology several years after the ban was implemented given the long investment cycle in coal production and use as an energy source - is physically possible - is technologically feasible - would not cause a major decline in profits in the energy sector as other forms of energy would replace coal - is environmentally sound - is socially acceptable
In the three factor model of sustainability we seek to balance economic, social and environmental sustainability factors in harmony. Match the following lists of sustainability factors with their results.
Environmental and Economic Sustainability - viable Environmental, Social, and Economic Sustainability - sustainable Social and Economic Sustainability - equitable Environmental and Social Sustainability - bearable
A sustainable future with far fewer jobs is consistent with human flourishing as long as people are able to obtain their basic and secondary needs from government programs and/or charitable giving.
False
Human capital is the aggregate of the actual or potential resources which are linked to possession of a durable network of more or less institutionalized relationships of mutual acquaintance and recognition -- or in other words, to membership in a group.
False
If people in a social-ecological system are flourishing, the system is sustainable
False
Innovation is the spread of a technology through a society or industry
False
Inputs may be perfect substitutes in that they must be used in a fixed ratio as part of a production process
False
Social contracts are not worth the paper they are not written on.
False
Strong Environmental Sustainability is maintaining total capital intact without regard to the partitioning of that capital among the four kinds (Natural, Human, Human-made, Social). This would imply that the various kinds of capital are more or less substitutes, at least within the boundaries of current levels of economic activity and resource endowment.
False
The opportunity cost of moving firefighters from the Bald Mountain fire to the Pole Creek fire is the sum of all the cost of moving the crew and equipment from one fire fighting area to the other.
False
There has been increased discussion about the idea of providing a universal basic income (UBI) in which all permanent residents of a country receive a regular, liveable and unconditional sum of money from the government. Payment does not require the recipient to work or look for work, and is independent of any other income. UBI is consistent with the definitions of human flourishing we have discussed in this course.
False
We usually say that "solutions'' in sustainable economic systems must have a rate of return (either from profits or some other other source) that is at least 10% higher than the "market rate of return'' so that firms will have an incentive to enter the market.
False
What are the four categories by which goods are normally differentiated?
Form, place, time, possession
The following are examples of complementary pairs of inputs or products
Gallons of gasoline and fuel tank capacity Sewing machines and thread Computers and CAD/CAM software
A negative externality is an activity that imposes a negative effect on an unrelated third party, while a positive externality is the positive effect an activity imposes on an unrelated third party. Match the following with positive or negative externality.
Homeowner spending $7,500 in landscaping improvements to their property in hopes of increasing the market value of their home. - positive externalities Beekeeper who keeps bees for their honey while the bees pollinate surrounding crops. - positive Reducing the level of CO2 emissions in my country even if other countries do not do the same - positive Posting match by match results of a wrestling tournament to my Twitter account so wrestlers' parents can see them- positive Open pit mining where some tailings enter groundwater - negative Adding more cattle to the open savannah - negative Adding more nitrogen to my continuous corn crop (eschewing a soybean rotation) which results in nitrogen runoff - negative Driving home after five beers at the local pub - negative Installing scrubbers on a power plant smokestack even though the people in range pay nothing towards their cost - positive
Which of the following production processes exhibit feedback
In the female menstrual cycle the hypothalamus produces gonadotropin releasing hormone (GnRH). The GnRH signals the pituitary to produce follicle stimulating hormone (FSH). Corn and soybean rotation System of paper production Produce something, measure information on the production, and use that information to improve production
Social Contract Theory
Morality is the set of rules that rational people will agree to obey, for their mutual benefit, provided that other people will obey them as well.
Match the following resources with their types
Oil : Non-renewable Copper : Non-renewable A forest: Renewable natural An ocean fishery : renewable natural Building : produced physical capital Computer chip : produced physical Computer programming skill: human capital Investments and services that create the basic framework for society - social capital The improved dexterity of a workman - human capital Goodwill associated with a brand name such as KFC: other produced
Match the item with its description
Open System - interfaces Closed System - restricted interaction Isolated- does not exchange
Match each of five constraints on sustainability we have discussed with a definition or example.
Physical Possibility: satisfies laws of nature Technological feasibility : can be implemented at a commercial scale Economic Profitability: Return a level of p Environmentally Sound: actions should not release significant toxic materials to the air, land or water Socially Acceptable: reduces income inequality without making others worse off
Rawl's approach
Principles of social justice and moral behavior are chosen in an original agreement. . . . and these principles that free and rational persons concerned to further their own interests would accept in an initial position of equality . . . and these principles regulate all further agreements --- the kinds of social cooperation and forms of government that are permissible.
Consider the numerous individuals and groups who would like to have access to the Grand Canyon for a variety of activities. Which of the following are reasonable approaches to prevent damage/overuse and are also fair and just?
Set up up a quota system where entrance passes are allocated using a lottery. Require that all travel in the park be by foot or bicycle except for those who are physically challenged. For these individuals provide minimal cost transportation using solar powered fat tire golf carts.
Deonotology
So act that you treat humanity, whether in your own person, or in that of another, always as an end and never as a means only.
Suppose I want to design a hybrid car that weighs less than 3,200 pounds, gets 40 mpg and can be produced for less than $18,000. What is an appropriate constraint set?
The car must weigh less than 3,200 pounds, achieve at least 40 miles per gallon and have a production cost less than $18,000.
Suppose I want to design a hybrid car that weighs less than 3,200 pounds, gets 40 mpg and can be produced for less than $23,000. What is an appropriate constraint set?
The car must weigh less than 3,200 pounds, achieve at least 40 miles per gallon and have a production cost less than $23,000.
Suppose I want to design a hybrid car that weighs less than 3,200 pounds, gets 40 mpg and can be produced for less than $23,000. What is an appropriate constraint set?
The car must weigh less than 3,200 pounds, achieve at least 40 miles per gallon and have a production cost less than $23,000.
A market failure occurs when a competitive market fails to bring about an efficient allocation of resources.
True
An example of a Pigovian tax is an effluent fee.
True
Economics is the study of how individuals and societies choose to employ scarce resources.
True
Garrett Hardin has argued that mutual coercion, mutually agreed upon by the majority of the people affected is the most reasonable way to solve the tragedy of the commons.
True
If production of a product creates a negative externality, the social value of production is generally less than the private value.
True
If the pollution damage costs resulting from combustion of fossil fuels in cars and trucks were internalised into the price of these vehicles, hybrid and electric cars and trucks would be better able to compete and sales would increase.
True
In some sense sustainability is about distributional equity. It is about who gets what. It is about the sharing of well-being between present people and future people. . . .
True
Inputs may be substitutes in the sense that the quantity of one input can be decreased and another one increased without reducing output
True
One way to decrease atmospheric CO2 would be to raise the Federal gasoline tax and invest the income in research on hydrogen fuel cells as an energy source for transportation
True
Organic/sustainably produced standards are an attempt to prevent market failures due to asymmetric information between consumers who want to buy green" and producers of those products.
True
Robert Solow, a Nobel Prize winner in economics has argued, "You could say that our ancestors, who were considerably poorer than we are, whose standard of living was considerably less than our own, were probably excessively generous in providing for us. They cut down a lot of trees, but they saved a lot and they built a lot of railroad rights-of-way."
True
Sustainability and human flourishing are not mutually exclusive.
True
The Williams family and a few close friends have known about a small lake in the mountains in a remote part of Idaho for generations. An occasional hiker or hunter has come upon but in general it is ``hidden''. John Williams III is a student at Lewis-Clark State College. During his sophomore year he and a few friends decide to have a kegger at the lake. They use horses and ATVs to bring in the booze. Word soon spreads and ``Hidden Lake'' soon becomes the place to be on spring and fall weekends. This is an example of a negative network externality.
True
The government might discourage the use of a nonrenewable resource by providing a subsidy to those who produce or consume products using renewable resources, by not purchasing products manufactured using the non-renewable resource, and/or imposing a tax on products based on the percentage of value-added coming from the non-renewable resource.
True
We usually say that "solutions'' in sustainable economic systems must have a rate of return (either from profits or some other source) that is no less than the "market rate of return".
True
Weak environmental sustainability is maintaining total capital intact without regard to the partitioning of that capital among the four kinds. (natural human, human-made, social). This would imply that the various kinds of capital are more or less substitutes, at least within the boundaries of current levels of economic activity and resource endowment.
True
Which of the following are complex adaptive systems?
Twitter Helser Hall at Iowa State Traffic power grids in the United States
Utilitarianism
We should always do whatever will produce the greatest possible balance of happiness over unhappiness for everyone who will be affected by our action.
Which of the following are usually considered basic needs?
clothing, food, shelter, water
An adaptable solution "locks-in" existing concepts and technologies, is able to respond quickly to new challenges, and is resilient.
disagree
Received paradigms encourage us to think outside the box, to consider disruptive change to envision or design alternatives to current systems.
false
A system is resilient if its ___ is maintained when it is ___ or the elements needed to renew or ___ it can be ___ if a large perturbation radically alters its ___ and function
functionality disturbed reproduce maintain structure
In this course we have defined a paradigm as "A paradigm is a set of _____ that define a______, _____ of ______ or approach to _______ at any particular period of time.
practices discipline community thought problem solving
The opportunity cost throwing a soda pop can in the garbage is 5 cents minus the cost in terms of transportation and labor of taking it to the recycling center.
right
A negative externality is an activity that imposes a negative effect on an unrelated party.
true
An auction of permits for water use or the right to pollute will generally be efficient in allocating resources but may not be equitable if some bidders (rich, well connected)are able to buy permits in quantities that are not optimal for society because of wealth or power or other factors.
true
An example of an natural monopoly is an electric utility where there are economics of scale in production and distribution.
true
Diffusion is the spread of a technology through a society or industry.
true
Economic capital is typically calculated by determining the amount of capital that the firm needs to ensure that its realistic balance sheet stays solvent over a certain time period with a pre-specified probability.
true
Economic sustainability refers to the ability of an economic system to produce a constant or increasing standard of living over time. This is a goal or objective in which we are interested.
true
Human produced technology is one example of a process that can promote human flourishing much like a natural process such as the carbon cycle.
true
Inputs may be perfect complements in that they must be used in a fixed ratio as part of a production process
true
Inputs may be substitutes in the sense that the quantity of one input can be decreased and another one increased without reducing output
true
Inputs that are perfect complements must be used in a fixed ratio as part of a production process
true
People on Easter Island were no longer able to hunt for porpoises, one of their main food staples, because they cut down too many trees
true
Social capital requires maintenance and replenishment by shared values and equal rights, and by community, religious and cultural interactions
true
Social capital requires maintenance and replenishment by shared values and equal rights, and by community, religious and cultural interactions.
true
Some have argued that saving the Amazon, Earth's largest tropical jungle, could be a cheaper and faster way to avoid greenhouse gas emissions than replacing coal-fired power plants with renewable energy or switching to electric cars.
true
Some researchers have argued that excessive attention to tipping points tends to discount the humans' ability to mitigate global warming, i.e. to adapt to a changing environment so that we move away from perceived thresholds
true
Some researchers have argued that excessive attention to tipping points tends to discount the humans' ability to mitigate global warming, i.e. to adapt to a changing environment so that we move away from perceived thresholds.
true
The fact that firms must be profitable or return a level of profit no less than the "market rate" of return is a constraint on sustainable solutions
true
The fact that firms must be profitable or return a level of profit no less than the "market rate" of return is a constraint on sustainable solutions.
true
The government might discourage the use of a nonrenewable resource by providing a subsidy to those who produce or consume products using renewable resources, by not purchasing products manufactured using the non-renewable resource, and/or imposing a tax on products based on the percentage of value-added coming from the non-renewable resource.
true
The value of having access to a telephone increases as more people have access to a telephone. This is called a positive network externality.
true
Under a carbon offset program an electric utility in Pennsylvania might be allowed to continue to burn coal if they were to purchase rainforest land in Brazil and guarantee that it would not be harvested, or buy up the right to harvest the trees from that rainforest but then not exercise that right.
true
Resources are anything that can be used directly or indirectly to satisfy human
wants