Missing the Mark
What term describes a cost imposed on a third party not involved in a transaction?
Negative externality
What energy source do governments often subsidize to encourage transition away from fossil fuels?
Renewable Energy
What is the mistake in the following sentence?: John Maynard Keynes was an English economist, whose ideas have affected government policies globally and have changed the way many people engage with the study of macroeconomic theory.
the "e" in English should be capitalized
Which term refers to the total amount of greenhouse gases emitted by an individual, organization, or product?
Carbon Footprint
What economic principle suggests that people give up some rights in exchange for protection and order?
Social Contract
What is a situation where resources are overused because individuals act in self-interest?
Tragedy of the Commons
What makes the shift to renewable energy challenging?
High initial costs, Updating infrastructure, Intermittency and reliability, Dependence on fossil fuels
What are the three branches of government represented at the US capitol in Washington DC?
Executive, Legislative, Judicial
What form of renewable energy utilizes the chemical compound formed from combining hydrogen and oxygen?
Hydropower
What area of study deals with large-scale economic factors like national production and inflation?
Macroeconomics
What is it called when markets fail to distribute resources efficiently?
Market failure
What type of economy prioritizes sustainability by minimizing waste and reusing materials?
Circular Economy
What economic system is based on private ownership and profit?
Capitalism
Increased oxygen levels in the atmosphere is a positive externality that occurs when individuals or businesses plant trees. What is another resulting positive externality?
improved air quality, reduced urban heat island effect, erosion protection, habitat creation
What concept refers to the idea that people are free and equal in the absence of society and governments?
State of Nature
What economic system sets limits on emissions and allows trading of pollution allowances?
Cap-and-trade
What is the term for evaluating the advantages and disadvantages of an economic decision?
Cost-benefit analysis
In the context of economics, what do a forest, a coral reef, and an oil reservoir have in common?
They are all natural capital
Elements like lithium, nickel, and cobalt are necessary for in the production of electric vehicles. While a switch to EVs is beneficial for the environment, what is one downside of this transition?
Environmental damage from mining, water pollution, resource depletion, recycling challenges (linear economy), and reliance on nonrenewable resources
What type of government intervention prevents monopolies and ensures competition?
Antitrust legislation
What are two examples of financial incentives to encourage environmental responsibility?
Offering tax credits for energy-efficient appliances, providing subsidies for solar panels, offering rebates for electric vehicles, reducing corporate taxes for sustainable practices, providing grants for green technologies
What are three groups most at risk from climate change?
Low-income communities, Developing nations, Indigenous communities, Coastal and small nations, Future generations
What does the acronym ESG stand for?
Environmental, Social, and Governance
Which industry/sector would win the gold medal for greatest greenhouse gas emissions?
Energy/Transportation
What major historical event influenced John Maynard Keynes's economic theories?
The Great Depression