GEF

Unit 7  |  The Economics of Sustainability 162 3. Which statement best explains an important feature of capitalism? a. Property and the means of production are owned by governments with no means of investment or financial returns. b. Investors seek to maximize financial returns by moving financial assets from slow-growing to fast-growing investments. c. Prices for goods and services are set by the state. d. The balance of supply and demand does not set prices for goods and services. 4. Which statement best expresses how sustainability advocates look at Gross Domestic Product (GDP)? a. GDP is an incomplete and flawed measure of economic health. b. GDP accurately measures economic, environmental, and social health. c. Rapid GDP growth is important in order to ensure social and economic equality. d. GDP is a reliable tool for assessing gross national happiness. 5. The Green Revolution in agriculture in the developing world doubled crop yields in just a few decades by: a. Using sustainable methods b. Integrating ecosystem services c. Introducing technological developments d. Employing “green” techniques 6. Which of the following is an example of a market failure? a. A factory produces cars that do not sell well because demand predictions were overestimated. b. A factory does not reduce water pollution because there is no market signal to do so. c. Consumers choose to buy goods that are produced inexpensively. d. A large company purchases a smaller company in order to capture a larger market share.