The essential difference between natural capital and human

Question 1

1. The essential difference between natural capital and human-made capital is
   

   	a.	Human-made capital is much more expensive to produce
   	b.	Natural capital is much more expensive to produce
   	c.	Natural capital can not be produced by human activity
   	d.	Human-made capital is being used up at an unsustainable rate
   	e.	Human-made capital consumes fewer natural resources than natural capital

5 points

Question 2

1. Both of our two texts – Natural Capitalism and The Playbook – argue that we must reduce greenhouse gases and combat global warming because

   	a.	They are a serious health threat to the entire population of the world
   	b.	They are threatening rare species of plants and animals that add rich diversity making our life more enjoyable
   	c.	The United Nations has imposed an international law requiring all nations to reduce GHG emission to below 1990 levels.
   	d.	Although it may inhibit economic growth it simply must be done to protect the beauty of our planet
   	e.	It should be done because in makes business sense and often represents a profit opportunity.

5 points

Question 3

1. In Chapter 1 of the Playbook, “sustainability” is defined as having two (2) dimensions. These two dimensions are:

   	1.	Economic
   	2.	Social
   	3.	Political
   	4.	Environmental
   	5.	Financial

5 points

Question 4

1. “One of nature’s most critcal cycles is the continual exchange of carbon dioxide and oxygen among plants and animals.” p. 4 of the text of Natural Capitalism. According to the text, “the capacity of the natural system to recycle Blank 1 has been exceeded.”

5 points

Question 5

1. Chapter Three of Natural Capitalism concludes by explaining that the business opportunity of the future lies in finding ways to .

   	1.	use more natural capital and squeeze greater productivity out of human capital.
   	2.	use more and more human capital and leave the current supply of natural capital untouched and protected.
   	3.	use more and more natural capital and leave the current supply of human capital untouched and protected.
   	4.	use an equal amount of natural and human capital to protect the supply of both.
   	5.	use more human capital and squeeze greater productivity out of natural capital.

5 points

Question 6

1. Central thesis of the “Blunder” book is summarized in the preface with the statement:

   “That natural [ ]variations cause temperature variations, which give the illusion that the climate system is very sensitive to humanity’s greenhouse gas emissions.”

5 points

Question 7

1. In Chapter 4 of the Playbook, esp. in Fig. 4.1, the four ways in which your organization can realize concrete benefits from seeking Eco-Advantage are listed and explained. Two of these benefits are 1) growing revenues and 2) build brand & intangible value. Which of the following are the two other benefits possible from achieving Eco-Advantage?

   	1.	Earn handsome tax credits.
   	2.	Reduce workforce and save on labor costs.
   	3.	Reduce risk.
   	4.	Gain dominant market share.
   	5.	Cut costs (mainly by reducing outlays for energy)

5 points

Question 8

1. According to Chapter 12 of Natural Capitalism, global warming is being caused by
   

   	a.	A very slight but enormously significant increase in trace gases, mainly carbon dioxide, in our atmosphere. These gases are trapping the heat of the sun and increase the average temperature of the earth.
   	b.	The urbanization of our population, creating giant cities with thousands of square miles of buildings and pavement which absorb and retain the heat of the sun, increasing the average temperatures of our globe.
   	c.	An enormous increase in all the gases that envelop our planet, polluting our air and reversing the cleansing effects of the forests of the world which give us our oxygen.
   	d.	The burning of the tropical rainforests in South America and Africa causing a cloud of smoke to spread over the face of the earth and warm its surface
   	e.	Elimination of most of the gases that make up our atmosphere allowing more of the rays of the sun to penetrate through to the earth and warm its surface.

5 points

Question 9

1. In the modern world, society plays a critical role in defining your priorities. Employees, banks, and investors, for example, can be a heavy, unavoidable influence on your operations. All of these must be taken into account in your strategy formulation. These actors are known as [ ].

5 points

Question 10

1. According to Natural Capital, there are four resources employed in an economy. These include all of the following EXCEPT

   	a.	Human capital
   	b.	Technological capital
   	c.	Financial capital
   	d.	Manufactured capital
   	e.	Natural capital

5 points

Question 11

1. Living ecosystems provide us with a long list of invaluable services. These include all of the following EXCEPT
   

   	a.	Production of oxygen by forests and other living plants
   	b.	Purification of water by the soil, forests, and wetlands
   	c.	Decomposition of wastes in the natural cycle of organic material
   	d.	Control of soil erosion by wetlands, riparian ecologies, coastal marine ecologies, etc.
   	e.	All of the above. No exceptions.

5 points

Question 12

1. The basic principle of the “service & flow” economy is that the business should
   

   	1.	always provide excellent customer service on the products it sells
   	2.	never charge for customer service
   	3.	not mix the sale of product and services
   	4.	retain the product and sell only the service it provides
   	5.	always provide excellent customer service by maintaining adequate inventory of product so that the flow of product to the customer is assured.

5 points

Question 13

1. Natural Captalism rejects the notion of free markets as advocated by Adam Smith.

   True

   False

5 points

Question 14

1. In the Playbook, Chapter 3, the authors construct the game plan around “Top 10 Action Items.” These ten items are introduced and briefly explained in this chapter. They are then described and illustrated in detail in the subsequent chapters. Which one of the following items are NOT part of the “Top 10 Action Items?”

   	1.	Issue spotting
   	2.	Benchmarking & Prioritization
   	3.	Swat Analysis
   	4.	Eco-Advantage Strategy
   	5.	Employee mobilization

5 points

Question 15

1. Through the process of photosynthesis, plants absorb carbon dioxide and expel (emit) [ ].

5 points

Question 16

1. According to Natural Capitalism, the key criticism of free market capitalism as it is practiced today is that

   	a.	It relies on cleverly marketing unnecessary goods and services to gullible consumers
   	b.	Natural capital is given no value in the current system
   	c.	The free market is not really free; it is dominated by monopolies and monopsonies that exploit the consumer.
   	d.	It leads to excess production and requires government to stimulate demand to avoid massive unemployment
   	e.	It leads to inadequate demand (Keynesian theory) and requires government to stimulate demand to restart economic growth.

5 points

Question 17

1. The main message of Chapter Five is that no organization or company can ignore environment and [ ] issues in their operations. These issues must be included as an integral part of your strategy!

5 points

Question 18

1. Chapter 6 of Natural Capitalism explains how traditional cost barriers can be overcome. The key to breaking through these cost barriers is
   

   	1.	Employing recycling at every stage of production
   	2.	Replacing costly human labor with more efficient capital equipment
   	3.	Using whole system engineering, i.e., redesigning the entire system to obtain extraordinary savings.
   	4.	Reducing energy use by employing renewalbe sources
   	5.	Reduce the use of natural capital

5 points

Question 19

1. Roy Spencer, the author of “Blunder” explains global warming as follows. “In the case of the Earth, global warming happens from an energy [ ] caused by either (1) and increase in absorbed solar radiation, or (2) a decrease in thermally emitted infrared radiation lost to outer space.”

5 points

Question 20

1. Chapter 6 of the Playbook discusses measuring the environmental impact of your activities (business, if that is the case). The impact is summed up in the concept of your “environmental footprint.” To measure your environmental footprint it is necessary to consider more than just carbon dioxide. Including carbon dioxide, how many greenhouse gases should be measured to get a comprehensive estimate of your footprint?

   	1.	seven
   	2.	ten
   	3.	twelve
   	4.	five
   	5.	three

5 points

Question 21

1. According to the argument in Natural Capitalism, Chp. 3, our current system of market capitalism

   	a.	Is the best system for combating unemployment because it has built-in incentives for labor intensive investment
   	b.	Encourages the use of people rather than greater employment of natural capital
   	c.	Is neutral when it comes to job creation
   	d.	Has built-in disincentives to employ more people and rewards more intensive use of natural capital
   	e.	Has built-in incentives to employ more people and rewards greater resource productivity

5 points

Question 22

1. Chapter 6 of the Playbook argues thag there is strong reason for measuring waste! “Waste in any form – whether solid, liquid, or gaseous, hazardous or not – means lost [ ].”

5 points

Question 23

1. The author of “Blunder” totally denies that global warming has ever occurred and insists that the data presented by Al Gore and others is being misinterpreted.

   True

   False

5 points

Question 24

1. Chapter 7 of the Playbook explains “benchmarking.” Benchmarking begins with a Basic Play: Conduct a Rapid Assessment of your company’s or organization’s current Eco-performance. Before you can begin comparing your operations to the competition or to “best practices,” you must assess your own operations. You must examine your strengths and weaknesses in four vital areas, each in the figures of the chapter. The four vital areas include all of the following EXCEPT:

   	1.	Eco-strategy
   	2.	Financial Performance
   	3.	Commitment, culture, & capacity
   	4.	Execution & Eco-achievements
   	5.	Communications & engagement

5 points

Question 25

1. The opening of “Blunder” Chapter 1 offers a concise summary of Spencer’s global warming (GW) theory. According to his theory, climate variability, “is due to known cycles such as El Nino, La Nina, and the [—— —— ——].” “ . . .(G)olbal warming (or cooling) can happen through natural cloud changes altering the amount of sunlight being absorb by the earth.”

5 points

Question 26

1. Answer one (only one!) of the following questions in essay form. Your answer will be worth up to 25 points. Your answer must not exceed 200 words!

   1) In your own words, define natural capital. Be sure to include both kinds of natural capital that the text describes on p. 2. Give examples of each. (maximum 200 words)

   2) The theme of the entire Playbook is to demonstrate how businesses and organizations can benefit from adopting environmentally friendly policies and practices, i.e., how they can achieve Eco-Advantage. The main steps in a strategy to gain Eco-Advantage are explained in Chapter 1 of the Playbook. List and explain the four basic principles of strategy (strategic values) that businesses should follow to achieve Eco-Advantage. (maximum 200 words)