GEF

Unit 7  |  The Economics of Sustainability 163 7. Which situation best represents the tragedy of the commons concept? a. Fishing fleets do not maximize their individual catches because they wish to preserve the fishing industry. b. Greenhouse gas emissions decrease because of the actions of concerned individuals. c. Loggers cut down as many trees as possible because they do not benefit from forest conservation. d. Fishermen go out of business because of an increase in the cost of fishing licenses. 8. How might an ecological economist think about the global economy? a. Resource conservation is a subset of global forest management. b. The environment is a subset of the global economic system. c. The global economic system is a subset of the global ecosystem. d. Local economies are a subset of the global economic system. 9. Which of the following is an example of true cost accounting? a. Consumers pay more for gasoline to account for its role in climate change. b. Consumers pay the market rate for clothing. c. Subsidies to oil companies increase. d. The price of crude oil rises with decreased supply. 10. An economic stimulus provided by government to encourage specific economic activities or sectors is known as a/an: a. Subsidy b. Regulation c. Externality d. Monopoly