Question 1

Briefly define the following :
-option value

Accepted Answer

The answer of Briefly define the following :
-option value...

Question 2

Wild American ginseng roots can be sold legally if they are harvested from plants over 5 years old in appropriate places during a designated season. Poachers of American ginseng break these rules and threaten the species' existence. Possible policies to address the problem include:
A) a program that increases the supply of legal ginseng
B) a complete ban on ginseng production
C) a campaign to discourage ginseng purchases 
The graph below shows the illegal supply, the total (illegal plus legal) supply, and the demand for wild American ginseng. Assume that none of the policies affect the illegal supply curve.
How many thousands of pounds of illegal ginseng will be supplied per year if
a) none of the policies is implemented. _____ 
b) only plan (A) is implemented, and it increases the legal supply by 2 thousand pounds per year at each price but has no effect on the demand curve. _____
c) only plan (B) is implemented, which eliminates the legal supply of ginseng but has no effect on the demand curve. _____
Suppose only plan (C) is implemented. Draw the new demand curve such that the resulting quantity of illegal ginseng supplied is 2 thousand pounds per year.

Accepted Answer

The answer of Wild American ginseng roots can be sold...

Question 3

Which of the following is particularly vulnerable to starting-point bias?

Accepted Answer

A)  IPAT 
B)  TCM 
C)  CVM 
D)  IMF 
E)  WTO 
A)  IPAT 
B)  TCM 
C)  CVM 
D)  IMF 
E)  WTO

Question 4

The optimal level of pollution is

Accepted Answer

A)  zero. 
B)  found where the total cost of pollution equals the total benefit. 
C)  found where the marginal cost of pollution equals the marginal benefit. 
D)  found where the marginal benefit of pollution is maximized. 
E)  the level that has no effect on the environment. 
A)  zero. 
B)  found where the total cost of pollution equals the total benefit. 
C)  found where the marginal cost of pollution equals the marginal benefit. 
D)  found where the marginal benefit of pollution is maximized. 
E)  the level that has no effect on the environment.

Question 5

What is the optimal harvest condition for a tree? (Either version is fine.)
Explain why this equation makes sense in common sense terms

Accepted Answer

The answer of What is the optimal harvest condition for...

Question 6

The environmental Kuznets curve suggest that to reduce pollution we should

Accepted Answer

A)  increase population. 
B)  moderate income per capita. 
C)  make income per capita very high. 
D)  eat a European diet. 
E)  use more nuclear power. 
A)  increase population. 
B)  moderate income per capita. 
C)  make income per capita very high. 
D)  eat a European diet. 
E)  use more nuclear power.

Question 7

a. If someone doesn't care about future generations, does this makes their rate of time preference (discount rate) higher or lower (circle one)?
b. If you are willing to accept no less than $1200 in one year in exchange for providing a loan of $1000 now, what is your discount rate? ________
c. For someone with a discount rate of 15%, what is the present value of saving wildlife that would be worth $500 million in 120 years? ________ Show your work

Accepted Answer

The answer of a. If someone doesn't care about future...

Question 8

Briefly define the following :
-primary standards for air quality

Accepted Answer

The answer of Briefly define the following :
-primary standards for...

Question 9

Light, noise, and heat are provided in the reading as examples of what type of pollutant?

Accepted Answer

A)  stock 
B)  fund 
C)  flow 
D)  stationary source 
E)  mobile source 
A)  stock 
B)  fund 
C)  flow 
D)  stationary source 
E)  mobile source

Question 10

According to the textbook, shortages, such as the shortage of food that Thomas Malthus predicted would cause starvation, can be reduced or avoided by all of the following EXCEPT

Accepted Answer

A)  new discoveries 
B)  technological improvements 
C)  lower prices 
D)  the market mechanism 
E)  advancements in exploration for new supplies 
A)  new discoveries 
B)  technological improvements 
C)  lower prices 
D)  the market mechanism 
E)  advancements in exploration for new supplies

Question 11

Briefly define each of the following terms:
-Flow pollutant

Accepted Answer

The answer of Briefly define each of the following terms:
-Flow...

Question 12

Under the Gordon fisheries model, without intervention, fishers keep entering until … (you might want to draw the graph as a reminder)

Accepted Answer

A)  social marginal revenue equals average revenue 
B)  social marginal revenue equals marginal cost 
C)  marginal cost equals rent 
D)  marginal cost equals average revenue 
E)  average cost equals rent 
A)  social marginal revenue equals average revenue 
B)  social marginal revenue equals marginal cost 
C)  marginal cost equals rent 
D)  marginal cost equals average revenue 
E)  average cost equals rent

Question 13

The most efficient water use occurs under a _____ plan.

Accepted Answer

A)  Flat rate 
B)  Flat fee 
C)  Average cost 
D)  Decreasing block 
E)  Marginal cost 
A)  Flat rate 
B)  Flat fee 
C)  Average cost 
D)  Decreasing block 
E)  Marginal cost

Question 14

Market prices are more accurate measures of the value received from products when demand curves are

Accepted Answer

A)  upward sloping. 
B)  downward sloping. 
C)  actually curved. 
D)  vertical. 
E)  horizontal. 
A)  upward sloping. 
B)  downward sloping. 
C)  actually curved. 
D)  vertical. 
E)  horizontal.

Question 15

Briefly define the following :
-precautionary polluter pays principle

Accepted Answer

The answer of Briefly define the following :
-precautionary polluter pays...

Question 16

Briefly define each of the following terms:
-Front Page of the Newspaper Test

Accepted Answer

The answer of Briefly define each of the following terms:
-Front...

Question 17

Suppose each year of education a student receives provides $1000 worth of external benefits to society because students share their wisdom, support better policies, and serve as more productive workers. On the graph to the right, draw typical-looking curves for the private marginal benefit and the private marginal cost (just like the ones for beehives and airline flights among other goods in the textbook). Add the social marginal benefit curve as appropriate for this particular situation. Label the socially optimal quantity of years of education "Qs" and label the quantity that will actually be purchased (in the absence of government intervention) "Qp".
Using a specific number in your response, indicate one approach the government could take to achieve the socially optimal quantity of education.

Accepted Answer

The answer of Suppose each year of education a student...

Question 18

Suppose tourists spend $8 billion annually to visit wilderness areas in Utah. This information alone could be used to estimate the value of Utah's wilderness areas using what method?
Identify two types of value that this method fails to capture.

Accepted Answer

The answer of Suppose tourists spend $8 billion annually to...

Question 19

Suppose expanded use of nuclear power would involve a 5% chance of problems causing the release of enough radiation to kill 10 people and an additional 1% chance of the release of enough radiation to kill 500 people. Assume unidentified humans such as those who might die as the result of nuclear disasters are found to be worth $9 million each. If the discount rate is zero, what is the expected value of the human loss from nuclear expansion?
Suppose instead that the discount rate is 10% and the expanded use of nuclear power would certainly kill 100 people in 20 years. What is the present value of the human loss due to nuclear expansion?

Accepted Answer

The answer of Suppose expanded use of nuclear power would...

Question 20

A stated intent of energy deregulation was to

Accepted Answer

A)  increase competition among energy providers. 
B)  increase prices to allow energy providers to make fair profits. 
C)  allow larger regional energy providers to replace smaller local providers. 
D)  increase the use of biofuels. 
E)  increase the use of hydroelectricity. 
A)  increase competition among energy providers. 
B)  increase prices to allow energy providers to make fair profits. 
C)  allow larger regional energy providers to replace smaller local providers. 
D)  increase the use of biofuels. 
E)  increase the use of hydroelectricity.

Exam 1: Environmental Economics and Natural Resource Management

Briefly define the following : -option value

Which of the following is particularly vulnerable to starting-point bias?

The optimal level of pollution is

What is the optimal harvest condition for a tree? (Either version is fine.) Explain why this equation makes sense in common sense terms

The environmental Kuznets curve suggest that to reduce pollution we should

Briefly define the following : -primary standards for air quality

Light, noise, and heat are provided in the reading as examples of what type of pollutant?

According to the textbook, shortages, such as the shortage of food that Thomas Malthus predicted would cause starvation, can be reduced or avoided by all of the following EXCEPT

Briefly define each of the following terms: -Flow pollutant

Under the Gordon fisheries model, without intervention, fishers keep entering until … (you might want to draw the graph as a reminder)

The most efficient water use occurs under a _____ plan.

Market prices are more accurate measures of the value received from products when demand curves are

Briefly define the following : -precautionary polluter pays principle

Briefly define each of the following terms: -Front Page of the Newspaper Test

Suppose tourists spend $8 billion annually to visit wilderness areas in Utah. This information alone could be used to estimate the value of Utah's wilderness areas using what method? Identify two types of value that this method fails to capture.

A stated intent of energy deregulation was to

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