Final Exam ECON 2505ID In her guest lecture, “Behavioral Economists’ Perspective on Climate Change, Intertemporal Choice,” Prof

Final Exam ECON 2505ID

1. In her guest lecture, “Behavioral Economists’ Perspective on Climate Change,

Intertemporal Choice,” Prof. Bayaz Ozturk discusses some of the leading theories about when it is best to fight climate change.

1. 1. 1. What assumptions about human behavior do these models make?
      2. In what ways are these models not based on actual human behavior?
2. The reading, "The Elephant in the Boardroom: Why Unchecked Consumption is not an Option in Tomorrow's Markets, " (del Pino, et. al.) argues that most business growth models depend upon an ever-increasing level of consumer spending on their products.

Identify three reasons that this model is not sustainable from an economic and an environmental perspective. Please provide clear, detailed explanations for your reasons.

3. The article, “Moving Beyond GDP: How to Factor Natural Capital into Economic Decision Making” argues that GDP is an incomplete and insufficient measure of the value of economic resources and output.
   1. Why is GDP an inadequate measure of the economy’s resources and output?
   2. Explain what natural capital is and why it is argued that a value should be placed on natural capital.
   3. How specifically do the readings suggest natural capital should be measured?
   4. Describe one example from the reading of what one economy is doing to account for the value of its natural capital.