Economics 435
Spring 2012
Answers to Third Problem Set
I. Suppose that the total stock, S0, of a nonrenewable resource is 15 units. The quantity
demanded of the resource in each year is given by the equation Qt = 10 - Pt. The marginal cost
of extraction i
Economics 435
Spring 2012
First Problem Set
Due April 3
I.
A. What is the definition of economic efficiency? (A one-sentence answer is
sufficient for this part of the question.)
B. Briefly explain why being inefficient is considered undesirable. Does this
Economics 435
Third Problem Set
Due April 17
I.
Suppose that the total stock, S0, of a nonrenewable resource is 15 units. The quantity
demanded of the resource in each year is given by the equation Qt = 10 - Pt. The marginal cost
of extraction is zero. Th
Economics 435
Spring 2012
Answers to Fourth Problem Set
I. Consider a nonrenewable natural resource for which the costs of extraction are equal to zero.
The elasticity of demand for the resource is increasing over time
A. If the resource is owned by a mon
Economics 435
Spring 2012
Answers to Eighth Problem Set
I.
Sustainability is an issue that has received a lot of attention in recent years.
A. What is the definition of sustainability? Is sustainable development always
preferable to non-sustainable develo
Economics 435
Problem Set #5
1. Dynamic Efficiency
What is the definition of dynamic efficiency? Why is it the appropriate notion of
economic efficiency when considering the allocation of renewable or nonrenewable
natural resources?
2. Exhaustible Resourc
Economics 435
Spring 2012
Answers to Fifth Problem Set
Suppose that the growth function for some type of trees is given by the logistic equation,
ft = 50/(1+20e-.35t), t 3,
where f t is the volume of timber at the beginning of year t (prior to the beginni
Economics 435
Spring 2012
Answers to First Problem Set
I.
A. What is the definition of economic efficiency? (A one-sentence answer is
sufficient for this part of the question.)
Economic efficiency is attained if it is not possible to make anyone better of
ECONOMICS 435
SECOND EXAM
SPRING 2015
EACH OF THE THREE QUESTIONS WILL RECEIVE EQUAL WEIGHT
I.
A. Briefly define each of the following terms:
1. Externality,
2. Technological externality,
3. Coase theorem.
4. Pigouvian tax
B. Consider some type of polluti
Economics 435
Final Exam
Winter 2009
Please answer all 4 questions.
1. Dynamic Efficiency (20 points)
What is the definition of dynamic efficiency? Why is it the appropriate notion of
economic efficiency when considering the allocation of renewable or non
ECONOMICS 435
SECOND EXAM
SPRING 2011
EACH OF THE THREE QUESTIONS WILL RECEIVE EQUAL WEIGHT
I.
A. Briefly define each of the following terms:
1. Pecuniary externality,
2. Technological externality,
3. Coase theorem.
B. Consider some type of pollution for
ECONOMICS 435
SPRING 2015
ANSWERS TO MED-TERM EXAM
l.
20 A. "EconOmic efficiency is clearly a good thing. Therefore an allocation of
resources that is efficient is preferable to one that is not." Discuss.
Economic efﬁciency is a good thing because it is d
Economics 435
Spring 2012
Supplement to Seventh Problem Set
Suppose that the sustainable harvest function for some type of fish is H 5E 0.15E 2 , where
H is the sustainable harvest measured in pounds of fish and E is the level of fishing effort. The
price
Economics 435
Spring 2012
Second Problem Set
Due April 10
I.
A. What is the definition of dynamic efficiency? (A one-sentence answer is sufficient
for this part of the question.)
B. Explain why perfectly competitive markets would result in dynamic efficie
Economics 435
Spring 2012
Answers to Second Problem Set
I.
A. What is the definition of dynamic efficiency? (A one-sentence answer is sufficient for this
part of the question.)
Dynamic efficiency is attained if no reallocation of consumption over time cou
Economics 435
Spring 2012
Sixth Problem Set
Due May 15
I.
Suppose a pulp mill has the right to discharge its wastes into a river. The wastes cause damage
to fish, and therefore to recreational anglers. The dollar value of marginal damages to anglers is gi
Economics 435
Autumn 2015
Answers to Third Problem Set
I. Suppose that the total stock, S0, of a nonrenewable resource is 15 units, the demand
equation in each year is Qt = 10 - Pt, the per unit cost of extraction is C = 0, and i = 10%.
A. If the resource
Economics 435
Third Problem Set
Due October 22
Compute all non-integer answers to two decimal places.
I. Suppose that the total stock, S0, of a nonrenewable resource is 15 units, the demand
equation in each year is Qt = 10 - Pt, the per unit extraction co
Economics 435
Spring 2012
Answers to Sixth Problem Set
I.
Suppose a pulp mill has the right to discharge its wastes into a river. The wastes cause damage
to fish, and therefore to recreational anglers. The dollar value of marginal damages to anglers is gi
ECONOMICS 435
SPRING 2015
MID-TERM EXAM
ALL THREE QUESTIONS WILL RECEIVE EQUAL WEIGHT
I.
A. "Economic efficiency is clearly a good thing. Therefore an allocation of resources that
is efficient is preferable to one that is not." Discuss.
B. One of the nece
Economics 435
Spring 2012
Fifth Problem Set
Due May 1
Suppose that the growth function for some type of trees is given by the logistic equation,
ft = 50/(1+20e-.35t), t 3,
where f t is the volume of timber at the beginning of year t (prior to the beginnin
Economics 435
Autumn 2015
Answers to Second Problem Set
I.
A. What is the definition of dynamic efficiency? (A one-sentence answer is
sufficient for this part of the question.)
Dynamic efficiency is attained if no reallocation of consumption over time cou
Economics 435
Autumn 2003
FINAL EXAMINATION
Professor Ellis
1. Irreversible Development (25 points)
Following Krutilla and Fisher (The Economics of Natural Environments), consider the
following problem confronting a risk-neutral planner. Let S(t) be the p
Economics 435
Professor Ellis
Problem Set #4
1. Renewable Resources: Fish
a) In a model in which fishing costs do not depend upon the level of the fish stock, describe the rule
that characterizes the dynamically efficient sustained yield level of the fish
ECONOMICS 435
SPRING 2011
MID-TERM EXAM
ALL FOUR QUESTIONS WILL RECEIVE EQUAL WEIGHT
I.
A. "Economic efficiency is clearly a good thing. Therefore an allocation of resources that is
efficient is preferable to one that is not." Discuss.
B. One of the neces
Economics 435
Spring 2012
Seventh Problem Set
Due May 22
Suppose that the sustainable harvest function for some type of fish is H 5E 0.15E 2 , where H
is the sustainable harvest measured in pounds of fish and E is the level of fishing effort. The
price of
Natural Resource Economics
Professor Ellis
Economics 435
Autumn 2015
Phone: 543-6145
Email: [email protected]
Office Hours: Savery 325, TuTh 7:15-8:15 AM, and by appointment
I. Course Synopsis and Goals
The central concern of economics is the allocat
Economics 435
Autumn 2015
Seventh Problem Set
Due December 1st
Suppose that the sustainable harvest function for some type of fish is, H = 5E 0.15E2, where H
is the sustainable harvest measured in pounds of fish and E is the level of fishing effort. The
p
ECON 435 AU15
4.1
Lecture 4
Non-renewable Resources
Review of condition for optimal extraction
Demonstrations that this condition is correct
Proof by contradiction
Arbitrage interpretation
Calculus proof
Diagrammatic demonstration
Review with solved probl
Economics 435
Autumn 2015
Answers to First Problem Set
I.
A. What is the definition of economic efficiency? (A one-sentence answer is
sufficient for this part of the question.)
Economic efficiency is attained if it is not possible to make anyone better of