- Total welfare:
a. Is measured by Gross National (or Domestic) Product.
b. Equals economic welfare plus noneconomic welfare.
c. In the U.S. has continued to track nearly identically with GNP as measured by the Index of Sustainable Economic Welfare.
d. Has nothing to do with the consumption of market goods and services. - A purely competitive market is typically defined by:
a. Many buyers and sellers.
b. Perfect information.
c. A homogeneous product.
d. Answers A and B.
e. All of the above. - Crop pollination from naturally occurring bee populations is an example of:
a. A negative externality.
b. An ecosystem service.
c. A stock-flow resource.
d. A rival and excludable service. - The term “race to the bottom” refers to:
a. The rapid extraction of natural resources caused by economic growth, particularly fossil fuels, metals and other important minerals.
b. Competition among industrialized nations in the global north, which seek to expand into the developing markets of the global south.
c. A phenomenon in which countries seeking to attract economic activity will deregulate businesses, leading to lower wages, worse working conditions and fewer environmental protections.
d. Competition among the world’s major fossil fuel companies for deepwater drilling technology that would allow for the extraction of offshore oil and gas.
II. Short Answer. Please answer the following questions concisely. (10 points each.)
- Describe how the goals of sustainable scale and just distribution are interrelated. (See chapter 1 of your book)
- What was the Glass-Steagall Act? When was it implemented and what was its purpose?
- Consider the natural resource of water. Is water a fund-service or stock-flow resource? In what context? Describe the physical and economic characteristics of water.
- How many separate indicators comprise the Genuine Progress Indicator? Describe three separate indicators of your choice, making clear whether it is a cost or a benefit. Are there indicators that you would either add or remove from the list? Why?
- What does it mean to tax bads rather than goods? Give examples.
III. Short Essays. Please elaborate on the following questions. (15 points each.)
- What are three policies that you believe would help move us towards a sustainable scale for our economy? Briefly describe how each of them would help with the issue of sustainable scale.
- What are three policies that you believe would help move us towards a more equitable society/economy? Briefly describe how each of them would help with the issue of just distribution.
Sample Solution
