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Commons: land that belongs to the public, not to individuals. Historically as part of old English and New England towns where all the farmers could graze their cattle. Direct costs: costs borne by the producer in obtaining, processing, and distributing a product Environmental economics: economic effects of the environment and how economic processes affect that environment, including its living resources Externality: in economics, an effect not normally accounted for in the cost-revenue analysis Indirect cost: externality Intangible factor: in economics, one you cant touch directly, but you can value it Natural capital: ecological systems that provide public service benefits Policy instruments: to implement a societys policies Public-service functions: functions performed by ecosystems that benefit other forms of life in other ecosystems Risk-benefit analysis: in environmental economics, weighing the riskiness of the future against the value we place on things in the present Tangible factor: in economics, something you can touch, buy and sell.

1.) What is meant by the term the tragedy of the common? Which of the following are the result of this tragedy? The tragedy of the commons occurs when nature resources are being overexploited and it affects organisms around it. People do this without knowing the consequences of overexploiting natural resources for their own benefits. (a) The fate of the California condor (b) The fate of the gray whale (c) The high price of walnut wood used in furniture 2.) What is meant by risk-benefit analysis? When people weigh the riskiness of the future against the value placed on things in the present. 3.) Cherry and walnut are valuable woods used to make find furniture. Basing your decision on the information in the following table, which would you invest in? (Hint: Refer to the discussion of whales in this chapter.) (a) A cherry plantation (b) A walnut plantation (c) A mixed stand of both species (d) An unmanaged woodland where you see some cherry and walnut growing

4.) Bird flu is spread in part by migrating wild birds. How would you put a value on (a) the continued existence of one species of these wild birds; (b) domestic chickens important for food but also a major source of the disease; (c) control of the disease for human health? What relative value would you place on each (that is, which is most important and which least)? To what extent would an economic analysis enter into your valuation? (a) I would base the value on its benefits in that environment, and its popularity because if its popularity is more, then more people would like to see it and that would increase tourism, which will also increase the economy. (b) Since domestic chickens are a major source of diseases, then I would base its value on the amount of people that are willing to consume it while knowing its risks. (c) There are many diseases in the world, so I would base its value on how deadly that disease is, how much people are affected by it, and the rate that it spreads. 5.) (a) (b) (c) (d) (e) Which of the following are intangible resources? Which are tangible? The view of Mount Wilson in California intangible A road to the top of Mount Wilson tangible Porpoises in the ocean tangible Tuna in the ocean tangible Clean air intangible

6.) What kind of future value is implied by the statement Extinction is forever? Discuss how we might approach providing an economic analysis for extinction. When an animal is extinct, then we wont be able to make profit from that animal anymore, and the other animals that depends on it will also be affect by its loss. Extinction is forever because once a species is gone, it is gone and will never be able to come back to help its environment. By basing it on the importance of the animals ecological service, their value can be determined. 7.) Which of the following can be thought of as commons in the sense meant by Garrett Hardin? Explain your choice. (a) Tuna fisheries in the open ocean the ocean is free to everyone; therefore it is okay to farm a bunch of tunas there, since it makes a lot of profit and does not cost a lot. (b) Catfish in artificial freshwater ponds (c) Grizzly bears in Yellowstone National Park (d) A view of Central Park in New York City (e) Air over Central Park in New York City