Question 1

The textbook explains several indexes that improve on GDP as measures of welfare and progress.
a. Identify one category of goods that is included in GDP but not in these indexes? ___________________
b. Provide an example of a good in the category identified in part (a). ______________________________
c. What type of production do the alternative indexes include that is not part of GDP? _________________
d. Provide an example of that type of production. ______________________________________________
e. Identify an example of one of these alternative indexes. _______________________________________

Accepted Answer

The answer of The textbook explains several indexes that improve...

Question 2

Suppose a small island economy uses its resources to produce mangos and national parks for tourism. What shape would you expect this economy's production possibilities curve to have? _________________ Explain why.
If this economy is producing on its production possibilities frontier, but it is not producing the socially optimal combination of goods:
a) What type of efficiency is this economy definitely achieving? _____________________
b) What type of efficiency is this economy definitely not achieving? ____________________

Accepted Answer

The answer of Suppose a small island economy uses its...

Question 3

Suppose Econarctica penguins live for two periods. In the first period of their life the penguins are young and they reproduce with a total fertility rate of 1. In the second period of their life they are old and they do not reproduce. The old penguins die and the young penguins' eggs hatch in between one period and the next. Assume half of each generation is female. In Period 1 there are 4 young penguins and 8 old penguins. How many penguins will be alive two periods later, in Period 3? _____
Please show your work.

Accepted Answer

The answer of Suppose Econarctica penguins live for two periods....

Question 4

According to which model is social welfare maximized when assistance is pri?oritized for species that provide the greatest additional benefit per dollar spent on protection.

Accepted Answer

A)  Zingerman model 
B)  Natural Monopoly model 
C)  Weak Sustainability model 
D)  Hard Path model 
E)  Noah's Ark model

Question 5

Identify the fuel that matches the description.
-It can power combustion engines and fuel-cell electric vehicles. Electricity generated from the reaction of it and oxygen from the air provides fuel cells with clean, quiet power. The only emis?sions are pure water and heat. ________________

Accepted Answer

The answer of Identify the fuel that matches the description.
-It...

Question 6

In the absence of externalities, which of the following will produce the efficient quantity for society?

Accepted Answer

A)  A monopoly 
B)  A natural monopoly 
C)  A monopoly selling organic vitamins 
D)  A monopoly that practices perfect price discrimination 
E)  A monopoly run by an ethical egoist

Question 7

Identify the fuel that matches the description.
-It is made from renewable plant oils or animal fats and can run in current diesel engines. ____________________

Accepted Answer

The answer of Identify the fuel that matches the description.
-It...

Question 8

Identify the fuel that matches the description.
-Like coal and oil, it has its origins in the swamps of past geologic periods, but it is relatively clean burning and abundant. ___________________

Accepted Answer

The answer of Identify the fuel that matches the description.
-Like...

Question 9

Draw the environmental Kuznets curve. Be sure to label everything. Explain how the Kuznets relationship helps to justify an agenda of economic growth.

Accepted Answer

The answer of Draw the environmental Kuznets curve. Be sure...

Question 10

Suppose the LNG Inc. company wants to build three pipelines that would carry fuels under your city. The pipelines pose risks of groundwater contamination and explosion. For each pipeline the table below shows the marginal benefit to LNG Inc. and the marginal cost of expected damages to residents (in millions of dollars).
 $$\begin{array} { c c c c c } 
\text { Pipelines } & \begin{array} { c } 
\text { Total Profits } \
\text { for LNG Inc. }
\end{array} & \begin{array} { c } 
\text { Total Damage to } \
\text { Residents }
\end{array} & \begin{array} { c } 
\text { Marginal Benefit } \
\text { (added profits) }
\end{array} & \begin{array} { c } 
\text { Marginal Cost } \
\text { (added damages) }
\end{array} \
\hline \hline 0 & 0 & 0 & 0 & 0 \
1 & - & - &120 & 55 \
2 & - & - & 80 & 75 \
3 & - & -& 70 & 125
\end{array}$$ a. Fill in the blanks in the table.
b. What is the efficient number of pipelines? _____________
c. Suppose that LNG Inc. is entitled under the injunctive remedy. What is the range of offers (in millions of dollars) that the residents might make and LNG Inc. might accept to eliminate the third pipeline? Between __________ and ___________.
d. If residents are entitled under the damages remedy, at the level of output selected by LNG Inc., what is the total amount of compensation LNG Inc. will provide to the residents? _____________

Accepted Answer

The answer of Suppose the LNG Inc. company wants to...

Question 11

According to Hotelling's rule,

Accepted Answer

A)  one should treat others as one likes to be treated. 
B)  marginal social cost equals marginal social benefit. 
C)  you should never mix your liquors. 
D)  net marginal benefit rises at the rate of the in situ value 
E)  marginal rent rises at the discount rate

Exam 1: Environmental Economics and Natural Resource Management

According to which model is social welfare maximized when assistance is pri?oritized for species that provide the greatest additional benefit per dollar spent on protection.

Identify the fuel that matches the description. -It can power combustion engines and fuel-cell electric vehicles. Electricity generated from the reaction of it and oxygen from the air provides fuel cells with clean, quiet power. The only emis?sions are pure water and heat. ________________

In the absence of externalities, which of the following will produce the efficient quantity for society?

Identify the fuel that matches the description. -It is made from renewable plant oils or animal fats and can run in current diesel engines. ____________________

Identify the fuel that matches the description. -Like coal and oil, it has its origins in the swamps of past geologic periods, but it is relatively clean burning and abundant. ___________________

Draw the environmental Kuznets curve. Be sure to label everything. Explain how the Kuznets relationship helps to justify an agenda of economic growth.

According to Hotelling's rule,