1. Carefully review the following economic concepts and make sure you have a clear understanding of them: neoclassical economics, absolute scarcity, relative scarcity, nathouseholds human-made capital, factors substitution, technical advance, an economy households, a firm, product and factor markets, utility, environmental amenities, eco-
system services, and intrinsic value.

2. Economists view environmental resources or the natural environment, in general, as a scarce resource. In what specific way is the natural environment regarded as a scarce resource?

3. Economics is said to be the study of choices that implies trade-offs. Viewed broadly, what is the specific trade-off involved when the environment is the focus of an eco-
nomic study?