Environmental Policy
· Program where highly erosive cropland is planted for conservation & the government pays a farm subsidy.
CRP (Conservation Reserve Program)
· List two reasons for resource policy
Market failure, alter status quo
· Natural resource which exists in fixed quantity and which is depleted as used is called ______.
Exhaustible Resource
· 1969 federal law that requires an environmental impact assessment of any large federal project is:
National Environmental Protection Act
· What type of resource is not controlled by one user or source?
Common Property Resource
Miscellaneous
· One of the fastest recharging aquifers is the ______.
Edwards Aquifer
· Name two characteristics of a lending, less developed nation.
Import more finished products, export raw products, high debt
· What country owes the most in debt to other countries?
U.S.
· ______give the actual wealth to possessions owned by individuals.
Property Rights
· The state that passed the new welfare law, the law that states no more money for any additional children.
New Jersey
Property Rights
· The legal descrition system used by the Government in western United States after the Civil War was the ______system.
Rectangular Survey
· The U.S. constitution provides that private property cannot be taken without ______.
Due Process
· A land tenure system specifies the rights people have to ______, ______, and ______land.
Own, use, and control
· The _____ and ______system is the prevalent legal description system used in Texas.
Metes and bounds
· ______provides the state with the right to take private property for public use.
Eminent Domain
· ______provides the legal basis for the State of Texas to claim property for which there are no heirs.
Escheat
· The largest bundle of rights a private owner can hold in landed property is known as ownership in ______.
Fee Simple
· Property rights are granted to individuals by ______.
Society
Pollution
· Pollution in which its orientation is known is called ______.
Point Pollution
· ______is the federal agency that coordinates data gathering for water pollution nationwide.
Environmental Protection Agency (EPA)
· The gradual rise in atmospheric temperature due to increasing concentrations of CO2, CFC’s, Methane, and other gases is called ______.
The greenhouse effect
· The Montreal Agreement is an international accord to reduce CFC emissions to protect the earth’s ______.
Ozone Layer
· Which species of livestock generates the largest volume of waste on an annual basis nationwide?
Dairy Cattle
· According to the Journal of Animal Science, the utilization of livestock waste as a fertilizer source for crop production is limited due to the limited amount of ______and ______contained in the manure.
Nitrates and sodium
· The ______provisions of the 1990 Farm Bill provide research dollars for the agricultural waste management.
Sustainable agriculture
Theory/Laws
· An allocation of a resource which maximizes the net benefit from the use of the resource satisfies the criterion of what?
Static efficiency
· An allocation of resources across n time periods that maximizes the present value of the net benefits from the use of resource satisfies the criterion of what?
Dynamic efficiency
· This criterion suggests that, at a minimum, future generations should be left not worse off than current generations.
Sustainable Criterion
· When there exists no rearrangement of an allocation of resources that would benefit some people without hurting one person.
Pareto Optimality
· A system in which no inputs are received from outside of the system and no outputs are transferred outside of the system.
Closed system
· Type of economic analysis that describes what is, what was, or what will be.
Positive economics
· Type of economic analysis that deals with what ought to be.
Normative economics
· Producer’s surplus which persists in long run competitive equilibrium is known as what?
Scarcity rent
· This occurs whenever transactions between two parties confer a benefit or cost on a third party which is not taken into account in the deliberations of the first two parties.
Externality
· This theorem suggests that as long as negotiation costs are negligible and affected consumers can negotiate freely with each other, the court can allocate the entitlement to either party and an efficient allocation will result.
Coase Theorem
Terms/Resource Types
· The natural occurrence of resources in the earth’s crust is called what?
Resource endowment
· Known resources that can profitably be extracted at current prices.
Current reserves
· A resource which is currently being used for a particular purpose, and exists in a form allowing its mass to be recovered once that purpose is no longer necessary or desirable.
Recyclable resource
· A resource whose rate of replenishment is so low that is does not offer a potential for augmenting the stock in any reasonable time frame.
Depletable resource
· A resource whose natural replenishment augments the flow of this resource at a non-negligible rate.
Renewable resource
· Commodities which are consumed without rivalry up until some threshold at which rivalry in consumption begins are called?
Congestible goods
· A natural resource which is available for use in specific quantities per unit of time and which, if not used, is unavailable for use.
Flow resource
· A ______population refers to one in which fertility rates yield a birth rate which is constant and equal to the death rate.
Stationary
· ______prohibits fragile grass lands brought into production after January 1 from receiving farm program benefits.
Sodbuster
· The average amount of output produced per unit used is referred to as ______.
Average Physical Product
· Resources are divided into two groups. They are ______and ______.
Renewable and Nonrenewable
· A resource which comes into the system in specific quantities per unit of time and which has been stored for future use.
Fund resource
Resource economics
· List the four characteristics of an efficient structure of property rights.
Clearly specified, exclusivity, transferability, and enforceability
· List the two potential sources of value to an owner of a resource in the ground.
A use value when it is sold and an asset value when it remains in the ground.
· Air pollution control costs are financed primarily by ______while water pollution control costs are chiefly financed through ______.
Higher product prices and the tax system
· What is meant by “average physical product”?
It is the average amount of output per unit of input.
· The inputs of production have been broadly classified into four general groups. What are they?
Land, labor, capital, management
· A curve that reflects any combination of two inputs which results in a particular level of output is known as what?
An isoquant curve.
· In regard to ultimate use of non-renewable resources, maximizing the present value of annual net returns will not lead to the depletion of these resources. Why?
Scarcity and substitutes. As price of non-renewable resources rise due to scarcity, demand will fall as further use will be uneconomical.
· What is the popular name for atmospheric deposition of acidic substances.
Acid rain
· What are the two types of water pollution sources?
Point and non-point sources.
· As long as social and private discount rates are the same and price expectations are accurate, which forest rotation schedule will maximize net benefits?
The profit maximizing one.
· List and define the two main costs associated with scarce resources.
Private costs: cost incurred by individuals using scarce resources. Social costs: cost incurred by society when a scarce resource is used.
· The difference between potential supply and commercial demand at prevailing acceptable prices, higher than market-clearing prices is called?
Excess capacity
· What are the two different types of natural resources?
Renewable and non-renewable
· What is the CRP?
Conservation Reserve Program. A program where highly erosive cropland is planted for a conservation use and the government pays the farmer subsidy.
· What program was established to remove 45 million acres of highly erosive land from production for a ten year period?
The conservation reserve program
· What program prohibits fragile grasslands brought into production after Jan. 1, 1986 from receiving farm program benefits?
Sod buster
· Optimal timing of the use of resources given existing and expected technology and preferences is considered ______.
Conservation of resources
· The cost that occurs when one is trying to establish and enforce property rights are:
Transaction costs
· When a landowner surrenders part of his property for development, this agreement is considered a ______.
Development easement
· A program to make land productive or more productive by changing its character like reclaiming land from the sea or swamp drainage is called ______.
Land reclamation
· Water rights associated with owners of land along the banks of rivers or lakes are called ______.
Riparian Rights
· Which federal agency makes and enforces regulations involving chemicals and other materials it deems as hazardous to resources?
Environmental Protection Agency
· List two reasons for resource policy.
Market failure, to alter the status quo
· What is the standard that prohibits any chemical residue on food or feed?
Zero Tolerance
· What term is used to describe the difference between supply and demand at prevailing acceptable prices which are higher than market clearing price?
Excess Capacity
· What is the term for the policy that required that all highly erosive land have an approved conservation plan to reduce erosion by January 1, 1990?
Soil Conservation cross compliance
· A cost incurred by society when a scarce resource is used is known as a ______.
Social Cost
· What is the term for the concept that total output can be increased if each region specializes in producing those commodities for which it has the greatest advantage or least disadvantage?
Comparative advantage
· Pollution in which its orientation is known is called ______.
Point Pollution
· Pollution in which its source is unknown or broad is called ______.
Non-point pollution
· Erosion that occurs much faster than naturally occurring or geological erosion is called ______erosion.
Accelerated
· Tilled or untilled cropland that is allowed to be idle is known as ______.
Fallow land
· Resource economics arises because of a/an ______competitive market.
Imperfectly
· Everything that has a price or value is considered a ______.
Resource
· A resource that is not being regenerated or replenished by nature is called ______.
Nonrenewable resource or exhaustible
· Those resources provided by nature are called ______.
Natural Resources
· The characteristic of property rights that allow rights to be exchanged from one economic agent to another is known as ______.
Transferability
· The characteristic of property rights that allow one to ban another economic agent from the use of a good is known as ______.
Exclusion
· The characteristic of property right that allows one to use rules, regulations and the law to see that the right is regulated and control is ______.
Enforceability
· The characteristic of property rights that states the right as known is called ______.
Clearly specified
· The holding or owning of land and all the legal rights with that arrangement is known as ______.
Land Tenure
· Property rights may not be well defined because of the ______involved.
Costs
· An economic condition in which wants exceed available resources.
Scarcity
· Any approach which puts a value on a good that is not sold on the market is called ______.
Non-market valuation technique
· Any one’s farm share of the national acreage needed to produce adequate amounts of a certain crop is called ______.
Acreage allotment
· An ______occurs whenever transactions between two parties confer a benefit or cost on a third party which is not taken into account in the deliberations of the first two parties.
Externality
· A cost in which no cash payment is required or for which there is no cash outlay at the time the commodity is being produced.
Implicit cost
· Well-developed discipline dealing with the management or husbandry of range and pasture resources is called ______.
Range management
· An ______is a rock layer that will yield enough water to serve as a water supply for some use.
Aquifer
· A market failure occurs whenever at least on of two conditions occur. What are the two conditions?
Social costs do not equal private costs; social benefits do not equal private benefits.
· An area of economics concerned with the analysis of situations in which for some reason the state of the economy which would result from a perfectly competitive equilibrium cannot be achieved is called?
The theory of second best
· Goods which must be supplied communally because they cannot be withheld from one individual without withholding them from all are called _____.
Public goods
· In welfare economics, a change that makes at least one member of a community better off and makes none worse off is a ______.
Pareto Improvement
· In welfare economics, there is a long tradition of considering social welfare as having (at least) two dimensions those of ______and _____.
Economic efficiency, distributional justice
· Commodities, such as national defense, which have the characteristic of being both nonviral in consumption and nonexclusive in provision are called ______?
Public goods
· Commodities which are consumed without rivalry up until some threshold at which rivalry in consumption begins are called?
Congestible goods
· An external diseconomy is defined as:
A negatively valued impact of someone else’s consumption (individual or firm) over which an affected individual (or affected firm) has no choice.
· An external economy is defined as:
A positive valued impact of someone else’s consumption (individual or firm) over which an affected individual (or affected firm) has no choice.
· A Pareto-relevant externality is defined as:
An externality (economy or diseconomy) for which, given the existing set of property rights, an alteration in its level of esistence would result in gains from trade.
· A Pareto-irrelevant externality is defined as:
An externality (economy or diseconomy) for which, given the existing set of property rights, no alteration in its level of esistence would result in gains from trade.