Classical Economics
What is the main theory in classical economics?
Market is a largely self-regulating system.
Which school of thought believes the government should step in during recessions to help the economy recover?
Keynesian economics.
What is one goal of macroeconomics?
ex. Economic growth; Low unemployment; Low inflation; Sustainable trade deficits.
What is one factor of a good environmental policy?
Achievable; Economic; Durable; Market Based
How did early environmentalism begin?
Through newspapers and magazines in the 1800's.
Does a classical economic view consider negative externalities such as pollution?
No, classical economics pushes for maximizing profits and total economic surplus.
Which economic approach strongly supports free markets, individual freedom, and limited government intervention?
Neoliberalism
What are some missed goals of macroeconomics?
Leisure, Homelessness, pollution.
What is a tool used in microecnomic policy?
Carrot-and-Stick
What is one influential figure in Early Environmentalism?
ex. John Muir; Gifford Pinchot; Rachel Carson
What forces help determine the price of goods in a market economy?
Supply and Demand.
Which economist is known for "creative destruction"?
Joseph Schumpeter
What does prioritizing short term optimization cause?
"Race to the Bottom"
How does pluralism influence policy?
Through competing interest groups.
What caused the early environmental movement to begin in the 1960's?
Concerns about the environment to human health link.
Do classical economists believe free trade will lead to an ineffecient market?
No. Classical economists are under the beliefs that free trade is crucial to a market behaving efficiently.
Which economic model emphasizes rational expectations and real business cyle theory?
Neoclassical economics.
What causes the relegation of national interest?
Are environmentalists good or bad at pluralism? Why?
They are exceptionally bad because there is a battle for perfectionism.
What did John Muir advocate for?
What is a major flaw with GDP?
It does not take into account negative effects on environment or other externalities.
Which economic model did Alexander Hamilton favor?
State-Guided Industrial Transformation
Is the environment a part of economy and society's bubble?
Yes! Environment may allot valuable resources - but those resources are finite and should be used sustainably.
How does corporate governance model harm environmental policy making?
It ignores externalities, grants elite groups huge influence over policy making, and leads to path dependencies.
Did Gifford Pinchot advocate for conservation regulations, or products given to us by the land?
Both! Gifford Pinchot believed we can gather valuable resources from the land, but must be conservative while doing so.