Midterm_2011_Final

Midterm_2011_Final - EEP 162 Spring 2011 Midterm March 14,...

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EEP 162 Spring 2011 Midterm March 14, 2011 43 points True / False - 2 points each - (no explanation needed) 1. If you own land next to a lake, your riparian right may be sold to a non-riparian neighbor as long as his property is next to yours. 2. In times of shortage, a riparian diverter must cut back their water diversions based on the amounts that other appropriators are using. 3. All else equal, land irrigated with a relatively senior appropriative right is more valuable than land irrigated with a relatively junior appropriative right. 4. Consider a farmer using water from an abundant source for irrigation of his crops. The farmer will stop irrigating when his net marginal benefit of doing so is zero. 5. It is always efficient to require residential water users to install water meters so water agencies can price based on consumption. 6. Water utilities should never set price below long-run marginal cost M u l t i p l e C h o i c e Q u e s t i o n s - 2 points each - (no explanation necessary) 7.) Why do economists advocate marginal cost pricing for water? A) When water is priced below marginal cost, farmers use it irrationally. B)
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This note was uploaded on 06/06/2011 for the course EEP 162 taught by Professor Bickett during the Spring '11 term at Berkeley.

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Midterm_2011_Final - EEP 162 Spring 2011 Midterm March 14,...

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