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1: What does it mean that a factor is tangible? Intangible? Measurable, hard to quantify 2: What is tragedy of the commons?

When a resource is shared, an individuals personal share of profit from exploitation of the resource is usually greater than that individuals share of the resulting loss 3: What is a commons? Any resource owned publicly with public access for private uses 4: Explain how cow herding is an example of tragedy of the commons. Each user tries to maximize personal gain and must periodically consider whether to add more cattle to the herd on the commons 5: What are some examples of the commons? US forest, 38% are on publicly owned lands. Ocean fisheries away from coastlines Deep-ocean seabed, where valuable mineral deposits lie Antarctica The atmosphere Great Chagos Bank in the Indian Ocean

6: How does low growth rate of a resource contribute to its overexploitation? Cannot refresh itself quick enough, all disappears when used too much 7: What is an externality? Give an example. Also called an indirect cost, An effect not normally accounted for in the costrevenue analysis of producers. Not recognized by them as part of their costs and benefits. Costs or benefits that dont show up in the price tag.

Air and water pollution 8: What are public services of nature (ecosystem services)? How much are they worth? A service provided by a feature in nature that benefits all, public service functions have been estimated to provide between $3 trillion and $33 trillion per year

9: Why is it hard to value nature? Because we know we are mortal we tend to value personal wealth and goods more if they are available now than if they are promised in the future 10: How do we evaluate the acceptability of risk? The riskiness of a present action in terms of its possible outcomes is weighed against the benefit, or value, of the action 11: What is the U.S. Toxic Substances Control Act? US Toxic Substances Control Act No one may manufacture a new chemical substance w/o obtaining a clearance from the EPA. Act establishes procedures to estimate the hazard to the environment and to human health

12: How do we achieve environmental policy? Means to implement a societys policies are known among economists as policy instruments. Moral suasion - i.e., persuading people by talk, publicity, and social pressure) Direct controls, which include regulations Market processes, which affect the price of goods and include taxation of various kinds, subsidies, licenses, and deposits Government investments, which include research and education.

13: What are the 3 common methods of control of pollution? (1) setting maximum levels of pollution emission (2) requiring specific procedures and processes that reduce pollution (3) charging fees for pollution emission