Chapter 7
1. What is meant by the term the tragedy of the commons?
*The tragedy of the commons is the depletion of a shared resource by individuals, acting
independently and rationally according to each one's self-interest, despite their understanding that depleting the common resource is contrary to the
group's long-term best interests
*Which of the following are the result of this tragedy?
*(a) The fate of the California condor*
(b) The fate of the gray whale
(c) The high price of walnut wood used in furniture
2. What is meant by risk-benefit analysis?
*The comparison of the risk to its related benefits. Exposure to personal risk is recognized as a
normal aspect of everyday life. We accept a certain level of risk in our lives as necessary to achieve certain goals.
3.)Cherry and walnut are valuable woods used to
make fine furniture. Basing your decision on the
information in the following table, which would you invest in?
*(a) A cherry plantation*
(b) A walnut plantation
(c) A mixed stand of both species
(d) An unmanaged woodland where you
see some cherry and walnut growing
4.) Bird flu is spread in part by migrating wild birds.
How would you put a price on...
(a) the continued existence of
one species of these wild birds;
*$10,000
(b) domestic chickens important for food but also a major source of the disease;
*$6,000
(c) control of the disease for human health?
*$15,000
5.)Which of the following are intangible resources?
(a) The view of Mount Wilson in California
(b) A road to the top of Mount Wilson
(c) Porpoises in the ocean
(d) Tuna in the ocean
(e) Clean air
6.)What kind of future value is implied by the
statement “Extinction is forever”? Discuss how we might approach providing an economic analysis for extinction.
*The statement "extinction is forever" is that once a species is extinct, it will remain forever gone. That these species will not be around anymore, hence causing a ripple effect on the food chain, and their role in the respected habitats. We may be able to approach an economic analysis for these species by enforcing higher taxes to the public, also to enlighten the public of the consequences that go along with the species.
7.)Which of the following can be thought of as
commons in the sense meant by Garrett Hardin?
(a) Tuna fisheries in the open ocean
(b) Catfish in artificial freshwater ponds
(c) Grizzly bears in Yellowstone National Park
(d) A view of Central Park in New York City
(e) Air over Central Park in New York City
Key Terms-
*Commons
A land owned publicly, with area access for private uses.
*Direct Costs
Those borne by the producer in obtaining, processing, and distributing a product passed directly on to the user or purchaser.
*Environmental economics
How to persuade people, organizations and soiety at large to act in a way that benefits the environment, keeping it as free as possible of pollution and other damage, keeping our resources sustainable and accomplishing these goals within a domestic framework.
*Externality
Costs or benefits that don't show up in the price tag.
*Indirect Cost
Same definition as externality.
*Intangible factor
One you cant directly touch, but you can value it as with the beauty of the slope before the mudslide.
*Natural capital
Ecological systems that provide public service functions.
*Policy instruments
What we do, what we can do, and how we do it.
*Public-service functions
Functions performed by ecosystems that benefit other forms of life in other ecosystems.
Examples include the cleansing of the air by trees and removal of pollutants from water by infiltration through
the soil.
*Risk-benefit analysis
Riskiness of a present action in terms of its possible outcomes is weighed against the benefit, or value, of the action.
*Tangible factor
one you can touch, buy, or sell
*The tragedy of the commons is the depletion of a shared resource by individuals, acting
independently and rationally according to each one's self-interest, despite their understanding that depleting the common resource is contrary to the
group's long-term best interests
*Which of the following are the result of this tragedy?
*(a) The fate of the California condor*
(b) The fate of the gray whale
(c) The high price of walnut wood used in furniture
2. What is meant by risk-benefit analysis?
*The comparison of the risk to its related benefits. Exposure to personal risk is recognized as a
normal aspect of everyday life. We accept a certain level of risk in our lives as necessary to achieve certain goals.
3.)Cherry and walnut are valuable woods used to
make fine furniture. Basing your decision on the
information in the following table, which would you invest in?
*(a) A cherry plantation*
(b) A walnut plantation
(c) A mixed stand of both species
(d) An unmanaged woodland where you
see some cherry and walnut growing
4.) Bird flu is spread in part by migrating wild birds.
How would you put a price on...
(a) the continued existence of
one species of these wild birds;
*$10,000
(b) domestic chickens important for food but also a major source of the disease;
*$6,000
(c) control of the disease for human health?
*$15,000
5.)Which of the following are intangible resources?
(a) The view of Mount Wilson in California
(b) A road to the top of Mount Wilson
(c) Porpoises in the ocean
(d) Tuna in the ocean
(e) Clean air
6.)What kind of future value is implied by the
statement “Extinction is forever”? Discuss how we might approach providing an economic analysis for extinction.
*The statement "extinction is forever" is that once a species is extinct, it will remain forever gone. That these species will not be around anymore, hence causing a ripple effect on the food chain, and their role in the respected habitats. We may be able to approach an economic analysis for these species by enforcing higher taxes to the public, also to enlighten the public of the consequences that go along with the species.
7.)Which of the following can be thought of as
commons in the sense meant by Garrett Hardin?
(a) Tuna fisheries in the open ocean
(b) Catfish in artificial freshwater ponds
(c) Grizzly bears in Yellowstone National Park
(d) A view of Central Park in New York City
(e) Air over Central Park in New York City
Key Terms-
*Commons
A land owned publicly, with area access for private uses.
*Direct Costs
Those borne by the producer in obtaining, processing, and distributing a product passed directly on to the user or purchaser.
*Environmental economics
How to persuade people, organizations and soiety at large to act in a way that benefits the environment, keeping it as free as possible of pollution and other damage, keeping our resources sustainable and accomplishing these goals within a domestic framework.
*Externality
Costs or benefits that don't show up in the price tag.
*Indirect Cost
Same definition as externality.
*Intangible factor
One you cant directly touch, but you can value it as with the beauty of the slope before the mudslide.
*Natural capital
Ecological systems that provide public service functions.
*Policy instruments
What we do, what we can do, and how we do it.
*Public-service functions
Functions performed by ecosystems that benefit other forms of life in other ecosystems.
Examples include the cleansing of the air by trees and removal of pollutants from water by infiltration through
the soil.
*Risk-benefit analysis
Riskiness of a present action in terms of its possible outcomes is weighed against the benefit, or value, of the action.
*Tangible factor
one you can touch, buy, or sell