ECON 391 Lecture Notes - Lecture 2: Kyoto Protocol, Pay As You Throw, Global Issue
19 Apr 2018
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Document Summary
Economics is the study of how and why individuals and groups make de- cisions about the use and distribution of valuable human and nonhuman resources. It is not solely the study of profit-making businesses making decisions in a capitalist economy. It is much broader than this; it provides a set of analyti- cal tools that can be used to study any situation in which the scarcity of means requires the balancing of competing objectives. It includes, for example, impor- tant questions in the behavior of nonprofit organizations, government agencies, and consumers. Environmental economics is the application of the principles of econom- ics to the study of how environmental resources are managed. Economics is divided into microeconomics, the study of the behavior of individuals and small groups, and macroeconomics, the study of the economic per- formance of economies as a whole. Environmental economics draws from both sides, although more from microeconomics than from macroeconom- ics.
