Understanding Capital and Ecosystem Services

The video tutorial explains the concept of capital, including manufactured, human, and natural capital. It highlights the importance of natural capital and ecosystems, particularly in Scotland, and the various goods and services they provide, known as ecosystem services. The tutorial discusses the challenges of valuing these services and the role of governments in incorporating natural capital into decision-making. It emphasizes the need to understand the monetary value of ecosystem services to appreciate their importance and the cost of losing them.

What is the primary role of capital in economics?

• To consume resources

• To enable the production of more resources

• To deplete natural resources

• To increase government spending

Which of the following is NOT a form of capital?

• Human capital

• Digital capital

• Natural capital

• Manufactured capital

What does natural capital include?

• Only manufactured goods

• Human skills and education

• Land, soil, air, water, and living organisms

• Financial assets

Which country is used as an example to illustrate the importance of ecosystems?

• England

• Scotland

• Wales

• Ireland

What are ecosystem services?

• Financial services

• Services provided by the government

• Manufactured goods

• Goods and services provided by ecosystems

Why are ecosystem services often undervalued?

• Because they are easily replaceable

• Because they are expensive

• Because they are provided for free by nature

• Because they are not useful

What is the purpose of assigning a monetary value to ecosystem services?

• To reduce their usage

• To understand their importance and replacement cost

• To increase taxes

• To make them more expensive

What makes it difficult to determine the monetary value of habitats?

• Their simplicity

• Their constant evolution and complexity

• Their abundance

• Their lack of resources

What are organizations and governments doing to better incorporate natural capital?

• Selling it to private companies

• Reducing its importance

• Incorporating it into decision-making

• Ignoring it

In land use planning, what are some of the options considered for land use?

• Woodland, parkland, farming, or housing

• Only industrial development

• Only residential housing

• Only commercial buildings