GEF

Unit 7  |  The Economics of Sustainability 161 ASSESS YOUR UNDERSTANDING Select the best answer from the choices provided. 1. Why is the current global economic system unsustainable? a. It prioritizes environmental health and social equality over monetary return on investments and economic growth. b. It prioritizes monetary return on investments and economic growth over social equality and environmental health. c. It is growing too slowly to meet human needs. d. It incorporates the triple bottom line. 2. Ecosystem services are: a. All the services provided to the rain forest b. Natural resources and processes that make human life possible c. Greenhouse gases d. Fish and wildlife sustainability CHECK YOUR UNDERSTANDING 1. What does GDP measure? In what ways is GDP limited as a measurement of quality of life? 2. How do traditional capitalist markets work?What are the types of market failure that are of concern to sustainability?Why are these types of market failure concerning? 3. In what ways are traditional market economics and ecological economics different? What is one challenge of ecological economics? 4. What is true cost accounting? What are the benefits of using true cost accounting as a tool to measure our economic activity? 5. Why does sustainability require new approaches to managing the global economy? What are some of these new approaches?