practice_final_2

practice_final_2 - Econ M134 UCLA Winter 2008 Prof. Kahn...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ M134 Name:_______________________ UCLA Winter 2008 Prof. Kahn SID#:___________________ Midterm Exam This is a 70 point, 75 minute exam. Plan to allocate one minute for each point. Please write your name and UCLA ID on your exam. Longer is not better, keep your answers brief and to the point. Read the entire question , and be sure to follow the directions. I. Short Answer 1. (10 points) Externalities and Social Cost -- There is a city where 100 identical people live. There is a power plant nearby that produces 1 unit of pollution. Assume that every location within the city experiences the same level of pollution from the plant. Discuss in 4 sentences or less an empirical strategy for measuring how much damage each person suffers from the ambient pollution. What data would need to be collected? 2. (10 points) Calculating Social Costs -- In the city with 100 identical people described above, now assume that the power plant’s pollution causes each person in the city to suffer 3 days of sickness. Each person values not being sick at $40 per day. Now assume there is a pollution scrubber that will reduce the plants pollution levels to 0. What is the maximum aggregate amount that the city’s residents would be willing to pay the plant to install the scrubber.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
3. Measuring Sustainability -- Use the following two graphs of different ESI indicators to answer the following questions. The unit of analysis is a nation. Carbon Dioxide emissions are measured per person. Real GDP stands for
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/12/2010 for the course ECON M134 taught by Professor Bresnock during the Spring '08 term at UCLA.

Page1 / 5

practice_final_2 - Econ M134 UCLA Winter 2008 Prof. Kahn...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online