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Unformatted text preview: 1 ECON/FRE 374 – Makeup Midterm Midterm, October 20, 2004 Total Points: 100 Student Name:______________________________ Student Number____________________ Instructions: 1) Write your name, and student number on the exam, and on the answer booklet. 2) Keep a picture ID out on your desk. Someone will verify your identity. 3) Please write all answers on your answer booklets. 4) You have 50 minutes to complete your exam so budget your time accordingly. 5) Hand in both this exam and answer sheet together at the end of the exam. Questions (points in brackets): 1. Essay Question (please be brief) a. Provide the definition of ‘User Cost’ as discussed in class. Please describe user cost intuitively and using the conditions provided in your notes. (15 points) b. What are non-accumulative resources? Are there user costs for such resources? (15 points) 2. The government wants to introduce a policy which reduces the amount of Sulphur Dioxide (SO2) emissions in the air. SO2 is a key air pollutant, generated primarily by coal burning power plants. emissions in the air....
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- Spring '10
- Externality, TSB, intertemporally efficient reduction