Global economic challenges
Vocabulary
Pollution permits- federal permit allowing a public utility to release pollutants into the air.
Biomass- wood and wood waste, peat, municipal solid waste, straw, corn, tires, landfill gasses, fish oils, and other waste.
Modified free enterprise economy-free enterprise system with some government involvement.
Glut- substantial oversupply of a product.
Acid rain- pollution in form of rain water mixed with sulfur dioxide, a mild form of sulfuric acid.
Pollution- contamination of air, water, or soil by the discharge of a poisonous or noxious substance.
Aquifer- underground water-bearing rock formation.
Embargo- prohibition on the export or import of a product.
Gasohol- mixture of 90 percent unleaded gasoline and 10 percent grain alcohol.
Subsistence- state in which a society produces barely enough to support itself.
Pollution permits- federal permit allowing a public utility to release pollutants into the air.
Biomass- wood and wood waste, peat, municipal solid waste, straw, corn, tires, landfill gasses, fish oils, and other waste.
Modified free enterprise economy-free enterprise system with some government involvement.
Glut- substantial oversupply of a product.
Acid rain- pollution in form of rain water mixed with sulfur dioxide, a mild form of sulfuric acid.
Pollution- contamination of air, water, or soil by the discharge of a poisonous or noxious substance.
Aquifer- underground water-bearing rock formation.
Embargo- prohibition on the export or import of a product.
Gasohol- mixture of 90 percent unleaded gasoline and 10 percent grain alcohol.
Subsistence- state in which a society produces barely enough to support itself.
Section 1- The Global Demand for Resources
The population growth of Earth makes the planet seem smaller and smaller each year. The population is growing quicker than the ability to produce enough food to feed all of the population. Another problem is the decreasing supply of nonrenewable resources. Oil has had embargos placed on it because of the shrinking supply. This then rose the prices for gas from $5 to $35 per barrel. The estimated amount of years that coal will last in the future is about 200 years. With nuclear energy the problems are costs and the disposal of the harmful byproducts. We have some resources that will be more reliable on the other hand. Renewable energy resources are expensive to create and maintain but they don't create harmful byproducts and will not run out. Many countries are having issues finding clean and safe water. Also land is starting to run out especially for farming to produce food for the growing population.
The population growth of Earth makes the planet seem smaller and smaller each year. The population is growing quicker than the ability to produce enough food to feed all of the population. Another problem is the decreasing supply of nonrenewable resources. Oil has had embargos placed on it because of the shrinking supply. This then rose the prices for gas from $5 to $35 per barrel. The estimated amount of years that coal will last in the future is about 200 years. With nuclear energy the problems are costs and the disposal of the harmful byproducts. We have some resources that will be more reliable on the other hand. Renewable energy resources are expensive to create and maintain but they don't create harmful byproducts and will not run out. Many countries are having issues finding clean and safe water. Also land is starting to run out especially for farming to produce food for the growing population.
Section 2- Economic Incentives and Resources
When the oil prices suddenly started rising countries immediately began to try and find an easier way to produce energy. Pollution only happens because people have the incentive to do it, it doesn't happen on its own. The idea of pollution doesn't sound so bad to economists, but it does effect the economy because of acid rain. Acid rain can destroy many ecosystems greatly. The government bills big industries according to the amount of pollution they produce. Industries also need pollution permits to release pollution in the air.
When the oil prices suddenly started rising countries immediately began to try and find an easier way to produce energy. Pollution only happens because people have the incentive to do it, it doesn't happen on its own. The idea of pollution doesn't sound so bad to economists, but it does effect the economy because of acid rain. Acid rain can destroy many ecosystems greatly. The government bills big industries according to the amount of pollution they produce. Industries also need pollution permits to release pollution in the air.
Section 3- Applying the Economic Way of Thinking
The National council on Economic Education has a series of 5 steps to help with economic decision making.
-state the problem
-determine social goals to be attained
-consider the principal alternative means of achieving the goals
-select the economic concepts needed to understand the problem and use hem to appraise the merits of each alternative
-decide which alterative best leads to the attainment of the most goals or the most important goals
There are many tools used for decision-making; production possibilities curves, supply and demand curves, production functions, and even the National Income and Product Accounts. Cost-benefit analysis is used to make economic goal choices. The U.S.'s economy, capitalism, is now the dominant economic force in the world. There are some disadvantages to capitalism but it adjusts through time for the better.
The National council on Economic Education has a series of 5 steps to help with economic decision making.
-state the problem
-determine social goals to be attained
-consider the principal alternative means of achieving the goals
-select the economic concepts needed to understand the problem and use hem to appraise the merits of each alternative
-decide which alterative best leads to the attainment of the most goals or the most important goals
There are many tools used for decision-making; production possibilities curves, supply and demand curves, production functions, and even the National Income and Product Accounts. Cost-benefit analysis is used to make economic goal choices. The U.S.'s economy, capitalism, is now the dominant economic force in the world. There are some disadvantages to capitalism but it adjusts through time for the better.