ENVIRO ECONOMICS - LECTURE 1

  • Created by: ENee97
  • Created on: 25-09-18 19:00
WHAT IS ECONOMICS?
STUDY OF HOW SOCIETY MANAGES SCARCE RESOURCES
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WHAT IS SCARCITY?
HEN A RESOURCE IS LIMITED SO THAT AL DEMANDS FOR IT CANNOT BE SATISFIED
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WHAT IS MICROECONOMICS?
STUDY OF HOW INDIVIDUALS, HOSUEHOLDS ND FIRMS MAKE DECISIONS AND INTERACCT IN MARKTS
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WHAT IS MACROEONOMICS?
THE STUDY OF THE ECONOMY AS A WHOLE, INCLUDING INFLATION, UNEMPLOYMEN AND ECONOMIC GROWTH
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WHAT IS WELFARE ECONOMICS?
THE STIDY OF HOW THE ALLOCATION OF RESOURCES AFFECTS ECONOMIC WELL BEING
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WHAT IS POSITIVE ANALYSIS?
THE STUDY OF WHAT IS. IT SEEKS TO UNDERSTAND HOW AN ECONOMIC SYSTEM ACTUALLY OPERATES BY LOOKING AT THE WAY PEOPLE MAKE DECISIONS IN DIFFERNET TYPES OF CIRCUMSTANCES.
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AN EXAMPLE OF POSITIVE ANALYSIS?
HOW THE HOSUING AMRKET REACTS TO CHANGES IN INTEREST RATES OR HOW ELECTRIC UTILTES WOULD RESPOND TO A NEW TA ON SULPHUR EMISSIONS
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WHAT IS NORMATIVE ANALYSIS?
THE STUDY OF WHAT IT OUGHT TO BE. INVOLVES VALUE JUDGEMENTS
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AN EXAMPLE OF NORMATIVE ANALYSIS?
IN RELATION TO THE TAX ON SULPHUR EMISSIONS EXAMPLE, A STUDY TO DETERMINE WHAT KIND OF REGULATION WE OUGHT TO USE FOR A PARTICULAR ENVIRO PORBLEM.
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HOW IS POSITIVE ANALYSIS USED N MICROECOMICS?
IT IS USED BASED ON UTILITY MAXIMISATION AND EQUILLIBRIUM ANALYSIS.
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HOW IS NORMATIVE ANALYSIS USED IN MICRECONOMICS?
IS IT THE CRITIERIA OF ECONOMIC EFFICIENCY AND COST EFFECTIVNESS
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WHAT ARE TRADE-OFFS?
THEY ARE WHAT HAS TO BE GIVEN UP IN ORDER TO GET SOMETHING E.G. MORE RESOURCES TO NATIONAL DEFENSE EANS LESS FOR ENVIRO PROTECTION PLANS, OR MORE FUNDING FOR ENDANGERED SPECIES PROTECTIONS BUT LESS FOR SUPERFUND CLEAN UP
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WHAT IS A NECCESSARY CONDITION FOR TRADE-OFFS?
SCARCITY
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Card 2

Front

WHAT IS SCARCITY?

Back

HEN A RESOURCE IS LIMITED SO THAT AL DEMANDS FOR IT CANNOT BE SATISFIED

Card 3

Front

WHAT IS MICROECONOMICS?

Back

Preview of the front of card 3

Card 4

Front

WHAT IS MACROEONOMICS?

Back

Preview of the front of card 4

Card 5

Front

WHAT IS WELFARE ECONOMICS?

Back

Preview of the front of card 5
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