1. Capitalist market systems operate according to neoclassical economics: supply/demand. Explain how the assumptions of neoclassical economics contribute to environmental degradation. (2 pts)
2.State the difference between GDP and GPI? Which one accounts for the true cost? (1 pt.)
3. Define environmental policy and discuss the contributions of science, ethics, and economics towards formulating environmental policy. (3 pts)
4. Describe the three major approaches to environmental policy. (2)
5. A. If Canada has stricter laws for environmental protection than Mexico, and if these laws limit Mexico’s ability to export its goods to Canada, then by WTO policy Canada’s laws could be overruled in the name of free trade. Do you think this is fair? (1 pt)
B. Now consider that Canada is wealthier than Mexico and that Mexico could use an economic boost. Does this affect how you would respond?