Section 1
Explains how individuals make choices about allocating scarce resources to satisfy unlimited wants
What is Economics?
Measures efficiency based on opportunity costs
What is comparative advantage?
Measures the ease of converting an asset into the medium of exchange
What is liquidity?
The shared atmospheric environment required to maintain a stable climate on Earth
What are Climate Commons?
Making provable statements about phenomena (cause and effect model)
What is Positive Economics?
Measures the sensitivity of quantity demand to changes in price
What is Price Elasticity of Demand?
Third-party group that include banks and mutual funds which connect groups participating in financial transaction.
What are Financial Intermediaries?
Created incentives to use more renewable energy and described as the most significant climate legislation in history
What is the Inflation Reduction Act?
Exists if no one benefits without hurting someone else in terms of economic disribution
What is Pareto Efficiency?
Effectively allocating resources to maximize benefits for both suppliers and buyers... Scarce goods and services are produced by those who can produce it most cheap, going to those who value the good the most
What are Characteristics of Competitive Market Equilibrium?
Direct government spending allowing for economic intervention/activity
What is Fiscal Policy?
Created in the 1960s to regulate smog in Los Angeles by responding to electric vehicle adoption
What is the The California Air Resources Board (CARB)