Study guide envir test

Study guide envir test - Externalities externality is an...

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Externalities - externality is an effect from one activity which has consequences for another activity but is not reflected in market prices. Externalities can be either positive, when an external benefit is generated, or negative, when an external cost is generated from a market transaction. Public goods - a good that is non-rival . This means: consumption of the good by one individual does not reduce the amount of the good available for consumption by others. [1] Thus, if one individual eats a cake, there is no cake left for anyone else; but breathing air or drinking water from a stream does not significantly reduce the amount of air or water available to others. “Tragedy of the commons” The tragedy of the commons is a class of phenomena that involve a conflict for resources between individual interests and the common good . The term derives originally from a parable published by William Forster Lloyd in his 1833 book on population. It was then popularized and extended by Garrett Hardin in his 1968 Science essay "The Tragedy of the Commons". See also the enclosure of the commons , and its attendant social problems, which may have inspired the content of the parable. Benefit-cost analysis - Cost-benefit analysis is an important technique for project appraisal: the process of weighing the total expected costs against the total expected benefits of one or more actions in order to choose the best or most profitable option. Bubbles - An economic bubble (sometimes referred to as a "market bubble", a "financial bubble", or a "speculative mania") refers to a market condition in which the prices of commodities or asset classes increase to absurd or unsustainable levels (that no longer reflect utility of usage and purchasing power ). It occurs when speculation in the underlying asset causes the price to increase, thus encouraging even more speculation . The bubble is usually followed by a sudden drop in prices, known as a crash or a bubble burst . Both the boom and the bust phases of the bubble are examples of a positive feedback mechanism, in contrast to the negative feedback mechanism that determines the equilibrium price under normal market circumstances. Prices in an economic bubble can fluctuate chaotically , and become impossible to predict from supply and demand alone. 1. Emission offsets- Something that is emitted , especially the exhaust from a car. Marine reserves
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Clean air act - A Clean Air Act describes one of a number of pieces of legislation relating to the reduction of smog and atmospheric pollution in general. The United States Congress passed the Clean Air Act in 1963, the Clean Air Act Amendment in 1966, the Clean Air Act Extension in 1970, and Clean Air Act Amendments in 1977 and 1990. Numerous state governments and local governments have enacted similar legislation,
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Study guide envir test - Externalities externality is an...

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