Midterm & Solution 03 - 2 - ECON/FRE 374: Land and...

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ECON/FRE 374: Land and Resource Economics Second Midterm, May 23rd, 2003. Total Points: 100 Student Name:______________________________ Student Number____________________ This is Exam Version: A (total pages for this exam version: 8) You have 60 minutes (1 Hour) to complete your exam so please budget your time accordingly. Please read all questions carefully. Answer each question in the space provided after the question. You can use the blank side of each sheet if you need extra space for an answer, or for rough work. Please point clearly to any answer written on a blank sheet. This will ensure that your grader does not miss the answer. Section 1: Multiple Choice Questions . Each question worth 3 points, total points: 42 1) A possible method to approximate active (use) benefits is a. Direct Market Price Analysis b. Indirect Market Price Analysis c. Contingent Valuation d. All of the above Answer:___________________________________ 2) A possible method to approximate passive (non-use) benefits is a. Travel Cost Analysis b. Direct Market Price Analysis c. Contingent Valuation d. All of the above Answer:___________________________________ 3) Let S be structural characteristics of the house, N be neighborhood characteristics, and Q be the environmental characteristic of interest, and P hi be the price of house i. In the estimating equation for the Hedonic property value model the parameter α 3 represents a. The marginal cost of environmental use b. Marginal Willingness to pay for the environmental characteristic c. Mad Cow Disease d. All of the above Answer:___________________________________ i i i i hi Q N S P ε α + + + + = 3 2 1 0
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Midterm Exam FRE 374 Set A 2 of 9 4) The following is included while calculating the cost of travel in the Travel Cost Method a. The cost of fuel b. The cost of lodging c. An estimate of the opportunity cost of time traveled d. All of the above Answer:___________________________________ 5) Assume that the natural resource is characterized by open access. At the harvested quantity of this resource a. Total benefit from harvesting equals total cost of harvesting b. Marginal benefit from harvesting equals marginal cost c. Total benefit from harvesting is less than total cost d. Total costs are infinite Answer:___________________________________ 6) Assume that external costs or benefits exist. A direct market price analysis for measuring the value of a natural resource will a. Give an accurate measure of social benefits b.
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This note was uploaded on 11/29/2010 for the course ECONOMICS 300-400 taught by Professor Varies during the Spring '10 term at Cornell University (Engineering School).

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Midterm & Solution 03 - 2 - ECON/FRE 374: Land and...

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