Question

The historical growth of a steady-state economy would appear on a graph as...

1. Linear growth

2. Logistic growth

3. Exponential growth

4. Exponential decline

5. Logistic decline

13. The concept of a steady-state economy would involve all of the following except…

1. Limits on material consumption

2. Meeting basic needs such as food, housing, and medical care

3. Growth in services, arts, communications, and education

4. Compulsory population control

5. Maintenance of ecosystem functions

Which one of the following statements about the Global Environmental Facility is false?

1. A principle of the GEF is that the incremental costs of environmental protection should be borne by the global community

2. The GEF provides grants rather than loans

3. Pairing GEF grants with World Bank loans can risk increasing resource exploitation

4. GEF funding includes projects related to climate change and biodiversity loss

5. The GEF is administered by the U.S. Environmental Protection Agency

Answer 1

Brief Answers

1. The historical growth of a steady-state economy would appear on a graph as Exponential growth

2. The concept of a steady-state economy would involve all of the following except Growth in services, arts, communications, and education

3. Which one of the following statements about the Global Environmental Facility is false? The GEF is administered by the U.S. Environmental Protection Agency

Detailed Answers

Q1

In steady state growth all variables, such as output, population, capital stock, saving, investment, and technical progress, either grow at constant exponential rate.

Q2

Definition
a "steady state" economy is an economy a roughly constant output of goods and services, or

A steady state economy is "a sustainable economy with stabilized population and consumption."

Characteristics
"A steady state economy requires adherence to four basic rules or system principles:

1. Maintain the health of ecosystems and the life-support services they provide.
2. Extract renewable resources like fish and timber at a rate no faster than they can be regenerated.
3. Consume non-renewable resources like fossil fuels and minerals at a rate no faster than they can be replaced by the discovery of renewable substitutes.
4. Deposit wastes in the environment at a rate no faster than they can be safely assimilated."

Herman 'Toward a Steady-State Economy' policies

• Use cap-auction-trade systems for basic resources
• Institute ecological tax reform—shift
• Limit the range of inequality in income—set a minimum income and a maximum income.
• Free up the length of the working day, week, and year
• Re-regulate international commerce
• Reduce and amend the authority of the IMF-WB-WTO
• Move to 100% reserve requirements instead of fractional reserve banking
• Move all remaining publicly-owned natural capital (the 'commonwealth' of land and resources) to public trusts 'priced' at their true value
• Stabilize population
• Reform how we measure and manage national well-being—separate GDP into a cost account and a benefits account.

Q3

The World Bank serves as the GEF Trustee, administering the GEF Trust Fund . The Trustee helps mobilize GEF resources; disburses funds to GEF Agencies; prepares financial reports on investments and use of resources; and monitors application of budgetary and project funds. The Trustee creates periodic reports that contain an array of fund-specific financial in formation.