ECO2301 TXState Environmental Economics And Ecological Economics Assignment I have added a file amongst the other file questions that states how to answer

ECO2301 TXState Environmental Economics And Ecological Economics Assignment I have added a file amongst the other file questions that states how to answer each questions. Potential questions and study guide for
exam 1
Very Important info about exams! Please Read This!
In order for you to be successful in this class, you will have to do
significant research.
I am only interested in your work, not the work of others.
Do not copy the work of others and send it to me included in
your answers. I will certainly figure out that it is not your work
and I will deduct points.
The best thing for you to do is Read, Think, Listen, Observe,
Discuss, and ask good questions of the material you are
studying. Paraphrase! Do not copy!
Any 6 of these questions could be on your exam!
Suggestions:
•
•
•
•
•
•
•
Use this document as your starting point.
As you work your way through each topic, look for information that will help you
answer a question.
When you complete each topic, start preparing answers.
Include discussion of the related concepts, facts, issues, etc.
In many cases some additional research will be necessary.
Consult with other students to get feedback as you work to fine-tune your
answers.
Make sure that you are using an open outline like format in the construction of
your answers.
To a great extent, Economics is about connecting the dots
(finding relationships between seemingly unrelated things).
a. Our behavior impacts our ecosystem and the
ecosystem services. Those impacted ecosystem
Creative Commons Attribution 4.0 License, CC BY Charles Hackner Houston Community
College unless otherwise noted.
services in turn have impacts on the people and
economies of the global north and global south.
i. Pick 5 ecosystem services from the list in slide 13.
ii. Explain how each of your 5 ecosystem services is
supposed to work.
iii. Thoroughly explain the human behavior that has
disrupted each of those services.
iv. Explain how those disruptions to each ecosystem
service impacts the two different parts of the
world (the global north and global south).
b. For each of the 5 ecosystem services, thoroughly
explain 3 things that we should start doing right now to
repair or at least stop the damage to the 5 ecosystem
services you selected. Be sure you provide and
explain 3 recommendations for EACH of the 5
ecosystem services you selected!
2. Planet Earth is our only home for the time being. As global
populations grow and our resources dwindle, we should
worry more about the issues of SCARCITY AND CHOICE
i. There are 17 Rare Earth Elements, Pick any 5 of
them, and for EACH of the 5, explain in detail why
they are so critical to us.
Include:
a. what it used for,
b. why are those things so critical?
c. Where in the world the resource is
located
d. And approximately how much is left.
Creative Commons Attribution 4.0 License, CC BY Charles Hackner Houston Community
College unless otherwise noted.
ii. For EACH of the 5, explain 3 things we need to
start doing today to avoid running out of that
resource. It is very important that you provide
thorough and complete explanations here.
b. The theory of rational behavior says that we humans
act in our own self-interest. Given our actual behavior
and the decisions we have made and are continuing
to make relative to the planet, please:
i. Explain how over-pumping aquifers around the
world is in our best interest.
Specifically:
1. What does over-pumping of aquifers really
mean?
2. Explain how the continued over-pumping of
aquifers in America, China, and India, could
impact our ability to survive on the planet.
This will require that you find out what these
3 nations have in common that has
something to do with aquifers.
3. Explain in detail 3 things we can do to stop
the over-pumping problem. Focus on the
top uses of water in the world.
c. Utility Concepts:
i. Explain the 3 concepts: Utility, Marginal Utility,
and Diminishing Marginal Utility.
ii. Explain how EACH of those 3 concepts relate to a
yes or no decision to implement the Keystone XL
Pipeline project.
d. The Theory of Consumer Behavior:
Creative Commons Attribution 4.0 License, CC BY Charles Hackner Houston Community
College unless otherwise noted.
i. Explain EACH of the key dimentions of the Theory
of Consumer Behavior and what the theory tells
us.
ii. Does the theory of consumer behavior reflect
reality? If yes, then why. If no, the why not.
e. Marginal analysis is a decision-making tool.
i. Please define Marginal Cost and Marginal
Benefit,
ii. Explain these 3 cases in terms of what you should
do regarding an activity.
1. MB>MC
2. MC>MB
3. MC=MB
iii. Explain 3 examples of MC and 3 examples of MB
related to the Keystone XL Pipeline question.
3. The Production Possibilities Model is one of the first Economic
Models students learn about.
a. Please explain what the model teaches us.
b. Please explain each of the 4 assumptions of the
model.
c. Please explain Productive Efficiency and how it relates
to the ppc.
d. For Allocative Efficiency
e. Please provide a thorough explanation of Allocative
Efficiency.
Creative Commons Attribution 4.0 License, CC BY Charles Hackner Houston Community
College unless otherwise noted.
f. Please provide a thorough explanation of the 2-step
process for finding the point of allocative efficiency on
the PPC.
g. On the topic of Economic growth: need to see some
detail here.
i. What does it mean?
ii. How can it be graphically represented?
iii. What are the prerequisites to Economic growth?
iv. Why is Economic growth important to you and
your country?
v. Please provide thorough explanation of 3 factors
that would tend to limit economic growth. Be
sure you explain how those factors would
actually limit economic growth.
h. The Presentville – Futureville case:
1. Explain what motivated each group to
make the decisions they made.
2. Explain the impact of those decisions on the
future of each group.
3. Which group is most like America, and why?
4. What does this case teach you?
i. Law of increasing opportunity cost:
1. Explain it.
2. What does it teach us?
3. How could it be explained graphically?
j. Explain how you could use the Production Possibility
Model to represent the US Economy during 2008 –
2010.
Creative Commons Attribution 4.0 License, CC BY Charles Hackner Houston Community
College unless otherwise noted.
4. Every country has its own unique type of Economic System.
Ours is called Capitalism.
a. Please list and explain 5 “good” things Capitalism has
produced for us over the years. Make sure you provide
thorough explanations of why you believe these are
“good” things.
This is harder than it looks! Think carefully and be
objective. Nothing is 100% good or bad, so you
will need to be very thorough in your work.
b. Please list and explain 5 “bad” things Capitalism has
produced for us over the years. Make sure you provide
thorough explanations of why you believe these are
“bad” things.
c. Please explain in detail what would happen to our
capitalist system when confronted with limited global
resources and limited global markets.
5. The Circular Flow Model with Government is another
important model for students to understand.
a. Please explain what the model shows us.
b. List and explain the characteristics of each component
– be very thorough and provide plenty of detail!
You should have at least 4 characteristics for each of
the components of the cfm!
i. Government sector – list and explain the
characteristics
ii. Household sector – list and explain the
characteristics
Creative Commons Attribution 4.0 License, CC BY Charles Hackner Houston Community
College unless otherwise noted.
iii. Business sector – list and explain the
characteristics
iv. Product market – list and explain the
characteristics
v. Resource market – list and explain the
characteristics
c. Thoroughly explain how each component of the
model interacts with the other components – be
thorough – this requires lots of detail!
i. Explain how all of the sectors and markets
interact with each other. You can do this as part
of your answer to part ( c) if you like but
understand that this will require significant detail!
6. Demand, Supply, Market Equilibrium
a. Demand:
i. Please Thoroughly and completely define
demand.
ii. Please state the law of demand.
iii. List and thoroughly explain the 3 factors that
support the law of demand. Be sure you explain
how each actually supports the law of demand.
1. Don’t just copy from the slides, explain what
they actually mean and how they support
the law of demand.
iv. List and explain the determinants of demand and
how each can either cause an increase in
demand and a decrease in demand.
1. List and explain each of the 5 determinants
and how they impact demand.
Creative Commons Attribution 4.0 License, CC BY Charles Hackner Houston Community
College unless otherwise noted.
v. Thoroughly and completely explain the
differences between a change in demand and a
change in quantity demanded along with the
causes of those changes.
1. Be sure you include the causes of the
changes.
b. Supply
i. Define supply.
ii. State the law of supply.
iii. List and explain the determinants of supply and
how each can either cause an increase in
supply and a decrease in supply.
1. There are 6 determinants of supply listed in
the slide set. You should be able to list
and explain how each shifts the supply
curve to the left or right.
iv. Thoroughly and completely explain the
differences between a change in supply and a
change in quantity supplied and the causes of
those changes.
1. Be sure you include the causes of the
changes!
c. Market equilibrium.
i. Please thoroughly and completely explain what
market clearing equilibrium means.
1. Don’t just copy stuff, explain what this really
means. Please be thorough.
Creative Commons Attribution 4.0 License, CC BY Charles Hackner Houston Community
College unless otherwise noted.
ii. Thoroughly and in detail, explain what happens
when a price is above the equilibrium price, and
why those things happen!!! Detail!
iii. Thoroughly and in detail, explain what happens
when a price is below the equilibrium price, and
why those things happen!!! Detail!
iv. Thoroughly and completely explain the two
government intervention cases, price floors and
price ceilings and give examples.
7. In the discussion of the Market System we talked about the
characteristics of the Market system and 4 Fundamental
Questions that every economic system must answer.
a. List and thoroughly and completely explain those 4
fundamental questions and how they are answered.
i. What will be produced?
1. The following information should be
included in your explanation of this first
question.
a. products that generate profits and why
Creative Commons Attribution 4.0 License, CC BY Charles Hackner Houston Community
College unless otherwise noted.
b. explain economic profits
c. explain economic costs
d. relate normal profit to economic profit
and explain who gets the economic
profit.
e. define expanding industry and give an
example.
f. define declining industry and give an
example.
g. Consumer sovereignty – explain, what
it really means and how it works to
influence what gets produced?
b. How will the goods and services be produced?
1. The following information should be
included in your explanation of this second
question a. Why must firms try to employ the most
economically efficient production
techniques?
2. For each of the following issues, please
explain why they are important to a firm and
how a firm might address each one:
a. Optimal plant location
b. Resource Prices
c. Resource Productivity
d. Transportation Costs
c. Who will get the goods and services?
d. How will the system accommodate change?
The following information should be
included in your explanation of this fourth
question. Again, do not just copy stuff.
a. start with the system in equilibrium
Creative Commons Attribution 4.0 License, CC BY Charles Hackner Houston Community
College unless otherwise noted.
b. shock the system into a disequilibrium
condition
c. Use a change in one of the
determinants of demand.
d. Explain in detail, how the system
adjusts to the change.
a. Explain how the system completes the
adjustment process and returns to
equilibrium, and what indicates a
return to equilibrium.
e. Characteristics of the Market system.
i. Select any 5 of the characteristics of the Market
system that we covered, and explain each of
them. Be thorough!
ii. Explain how each characteristic you selected
impacts the 1% versus the 99%.
8. Public goods vs. Private goods.
a. Please thoroughly and completely explain the
difference between public goods and private goods
and give 2 examples of each, including why those
examples best fit your definition.
i. You should include the following:
1. private goods
a. Definition
b. Characteristics
c. 2 examples of private goods and why
they are good examples.
2. Public goods
a. Definition
b. Characteristics
c. 2 examples of public goods and why
they are good examples.
Creative Commons Attribution 4.0 License, CC BY Charles Hackner Houston Community
College unless otherwise noted.
b. Please thoroughly and completely explain the free
rider problem, give two examples and explain why
they are good examples.
i. You should be able to explain the Free Rider
problem including what creates the Free Rider
problem.
c. Please thoroughly and completely explain the
presence of quasi-public goods.
i. You should explain what a quasi-public good is
and give 2 examples, explaining why they are
good examples.
ii. Explain how quasi-public goods are used by the
1% versus the 99%.
9. Depreciation and Appreciation of currency.
a. Please thoroughly and completely explain how the US
dollar might depreciate relative to another currency.
b. Please thoroughly and completely explain how the US
dollar might appreciate relative to another currency.
The notes should be sufficient to help you answer
parts (a) and (b).
c. Please thoroughly and completely explain how the
depreciation of the dollar relative to a foreign currency
impacts U.S. GDP.
Start with an Increase in U.S. demand for another
country’s products. Explain how this could lead
to the depreciation of the U.S. Dollar – and
specifically state which direction U.S. GDP would
go.
Creative Commons Attribution 4.0 License, CC BY Charles Hackner Houston Community
College unless otherwise noted.
d. Please thoroughly and completely explain how the
appreciation of the dollar relative to a foreign currency
impacts U.S. GDP.
Start with An increased foreign demand for U.S.
goods. Explain how this could lead to the
appreciation of the U.S. Dollar – and specifically
state which direction U.S. GDP would go.
10. Market Failure.
a. State the definition of a market failure,
b. List and explain the 4 causes of market failure included
in the slides, including how they actually lead to
market failure. Don’t miss this part! Must be specific.
c. Spillover costs
d. State the definition of spillovers costs
e. Give two examples of a spillover cost situation and
explain why your examples are correct.
f. Explain in detail, the economic effects of spillover
costs. Provide specifics starting with the firm avoiding
costs (how and why that happens) and conclude by
explaining the nature of the market failure and what it
really means.
g. Explain in detail, how spillover costs are corrected and
how those solutions would actually work to solve the
problem. Be specific. Details!
Creative Commons Attribution 4.0 License, CC BY Charles Hackner Houston Community
College unless otherwise noted.
h. Spillover benefits
i. State the definition of spillover benefits.
j. Give two examples of a spillover benefit situation and
explain why your examples are correct. Be specific.
k. Explain in detail, the economic effects of spillover
benefits.
Explain why the market demand curve understates
true demand and what happens next leading to the
market failure. Explain the nature of the market failure.
l. Thoroughly and completely explain how spillover
benefits are corrected and the economic implications
of the corrections.
Explain the two approaches used to solve the spillover
benefit problem and how they work to solve the problem.
11. Throughout the ages countries have implemented
impediments to trade.
a. What is a tariff?
b. Why would the U.S. impose steep tariffs on Chinese
solar panels?
i. Explain how this would work to accomplish the
U.S. objective.
c. Given the current trade war with China and other
nations, please explain which industries are being hurt
by higher tariffs against America, and explain how the
customers of those industries are being impacted.
Please provide thorough explanations.
d. What is an import quota?
Creative Commons Attribution 4.0 License, CC BY Charles Hackner Houston Community
College unless otherwise noted.
e. Identify 3 cases where the U.S. has imposed import
quotas on another country and explain why they were
implemented
i. Google can help you.
f. What are non-tariff barriers (don’t use embargos or
import quotas)?
g. Identify 3 examples of non-tariff barriers imposed by
the U.S., why they were implemented, and their impact
on the U.S. and other countries.
i. Google can help you.
h. What could happen to the domestic economy of a
country when trade barriers are eliminated and why?
i. Explain what would happen to GDP,
employment, and national income, and why.
Creative Commons Attribution 4.0 License, CC BY Charles Hackner Houston Community
College unless otherwise noted.
Macroeconomics 2301
Potential questions and study guide for
Exam 2
Any 6 of these questions could be on your exam!
1. GDP is a key concept in Macroeconomics.
a. What is the definition of GDP?
b. List and explain in detail, the 3 different approaches to
calculating GDP and explain how they are different.
i.
List and explain the approaches and how you would use each to
calculate GDP.
c. List and explain 3 types of transactions that would not be
included in GDP and why they should be omitted.
i.
Look in the notes and find 3 types of transactions that are
excluded from the computation of GDP and write them down
along with the explanation of each and why they are not
included.
d. Thoroughly explain the components of GDP and relate
those components to the Circular Flow model with
government and international trade.
i.
ii.
List and explain the 4 components of GDP
Relate each of them to the components of the complete circular
flow model that you studied in part 1 of the course.
e. Nominal versus real GDP.
i. Explain the difference between nominal and real
GDP,
ii.
Explain in detail, how to calculate real GDP,
including the factors used in the calculation.
1. Look in the notes to find this – very straight forward.
Creative Commons Attribution 4.0 License, CC BY Charles Hackner Houston Community
College unless otherwise noted.
2. You need to explain the CPI since it is used to make the
conversion.
iii.
Explain what you can do with real GDP that you
can’t do with nominal GDP and explain why not.
f. GDP and GDP per-capita.
i. Explain the difference between GDP and Per Capita
GDP;
ii.
explain how to calculate Per Capita GDP, and how
Per Capita GDP can be used.
1. Should be able to get this from the notes and a bit of
research.
2. Economic growth. Two key sources of economic growth have been
due to increases in resources and increases in productivity.
a. Please explain 5 factors that might contribute to falling U.S.
GDP growth rates.
b. Explain in detail, what we could do to avoid each of the 5
factors causing our GDP growth rates to fall.
c. Please explain 5 factors that might contribute to rising U.S.
GDP growth rates.
d. Explain in detail, what we could do to cause each of the 5
factors to happen and cause our GDP growth rate to
increase. .
3. The Business Cycle and Built in stabilizers.
a. What can the business cycle tell you about the status of our
economy today and into the future (please provide detail)?
b. Given what you have learned about the U.S. Business cycle
over the past 60 years, please explain 4 things you should do
Creative Common…
Purchase answer to see full
attachment