ES290 Lecture Notes - Lecture 2: Brundtland Commission, Soil Retrogression And Degradation, Economic Equilibrium
Document Summary
Economic system (mather and chapman): means used to decide how to produce and allocate/distribute goods and services 4 main economic systems: traditional production of goods is towards subsistence (only enough goods are produced for basic survival/ little surplus) Customs/traditions= major in uences on what is produced/distributed/used: market/commercial traditional systems have been replaced by market systems. Governed by interactions of demand, supply and price (micro s/d curve) Market equilibrium point will shift depending on demand (higher price=increased supply) ***problem with market systems: externalities or environmental side effects. **does not apply to all resources (i. e forests cant rapidly regrow: part of cost of production is shouldered by the neighbouring residents or by society, command/centrally planned decisions made by gov rather than market. Gov assumes all responsibility for decisions of what/how much to produce. Global pollution of atmosphere/oceans, fresh water pollution, soil degradation and erosion,
