Name Amaya Barber
Class 2A
Date nov 5 ,2021
2.1 Economics
Key Concepts
Supply and demand and cost-benefit analysis are two economic concepts that greatly
contribute to decision making.
All economies depend on the environment for resources and for management of wastes,
but these connections are often overlooked.
A new trend in economics is the recognition that suppliers of goods and services need
to consider how to conserve resources and reduce harm to the environment.
Vocabulary Preview
Define each vocabulary term in your own words. Then, write yourself a quick note on
how you will remember each. One term has been done for you.
Term
Economics
Supply
Demand
Cost-benefit
analysis
Ecological
economics
Environmental
economics
Non-market
value
Definition
1. the branch of knowledge
How I Remember
thinking of the important economics
concerned with the production, of the economy
consumption, and transfer of
wealth.
something needed or wanted
The amount of a product people will
buy at a given price if free to do so.
the things people in order to survive
and to live on
to remember the important things
that are on a supply list
When people demand something,
they want it and are willing to pay
for it.
a systematic process that businesses look up the definition
use to analyze which decisions to make
and which to forgo
an interdisciplinary field defined
by a set of concrete problems or
challenges related to governing
economic activity
study of the economics of
ecological and environmental
issues.
look up the definition
think about the issues of the
environment and the issues there are
that cause the situation
Most environmental goods and
think about fish and things like that
services, such as clean air and
water, and healthy fish and wildlife
populations, are not traded in
markets.
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Name
Class
Term
Market failure
Ecolabeling
Definition
Date
How I Remember
the inefficient distribution of
goods and services in the free
market.
think about marketing and goods and
food
voluntary method of
environmental performance
certification and labelling that is
practised around the world.
look up the definition
What Is Economics?
Match each type of economy with the statement that best describes it.
b
1. centrally planned economy
a
c
2. free market economy
3. mixed economy
a. The government decides what is made, how
it
is made, and who gets what.
b. Both government and individuals play roles
in
economic decision making.
c. Individuals decide what is made, how it is
made,
and how much is made.
4. Is economics only about money? Explain your answer.
me personally i dont think that economics is about money i think economis is all about production
products, and things like that.
5. Compare and contrast goods and services.
Goods are the material items that the customers are ready to purchase for a price. Services
are the amenities, benefits or facilities provided by the other persons. Goods are tangible
items i.e. they can be seen or touched whereas services are intangible items.
6. Explain how supply and demand works.
supply and demand, in economics, relationship between the quantity of a
commodity that producers wish to sell at various prices and the quantity that
consumers wish to buy. ... In equilibrium the quantity of a good supplied by
producers equals the quantity demanded by consumers.
7. On the surface, cost-benefit analysis seems straightforward. What can make this
decision-making method both complicated and controversial?
It can be difficult to identify or define the cost and benefits of a specific action
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Name
Class
Date
Economics and the Environment
8. Briefly define natural resources.
Natural resources are resources that exist without any actions of humankind.
9. What kinds of “services” do ecological systems provide?
Ecosystems underpin all human life and activities. The goods and services they provide are vital
to sustaining well-being, and to future economic and social development. The benefits
ecosystems provide include food, water, timber, air purification, soil formation and pollination.
10.
Fill in the diagram with short descriptions of economic
assumptions that have harmed the environment.
Economics and Sustainability
11. Complete the following paragraph with terms from the word bank.
Many economists in
argue that economies must be stable to be
sustainable. But economists in
think growing economies can
become sustainable if they address environmental problems. In particular, these economists are
developing ways to include the
of ecosystem services in prices. They are
also finding ways to avoid
by acknowledging the positive effects of the
environment on economies and the negative effects of economic activities on the environment
and people.
helps consumers push companies toward sustainability.
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Name
Class
Date
12. How do companies benefit by offering sustainable products and services?
Organize Information
13. Complete the tables below to show how the quantity produced and the quantity purchased
change in a typical market. On the lines below the tables, describe what might happen if
consumers were willing to pay a high price for a new sustainable product, such as a very
energy and water efficient yet expensive washing machine.
Demand
Price
Low
Supply
Price
Quantity Produced
Low
Quantity Purchased
High
Low
EXTENSION Identify a product that consumers are likely willing to pay high prices for.
Then draw a supply and demand graph comparing price to quantity purchased.
Answer the questions to test your knowledge of lesson concepts. You can check your
work using the answers on the bottom of the page.
14. Which kind of economy do most nations have today? Explain your answer.
15. What are external costs, and how do they relate to market failure?
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