Question 1

Weak sustainability requires the maintenance of

Accepted Answer

Weak sustainability is based on the principle that the total capital stock (including natural, human, and physical capital) should be maintained, allowing for substitution between different forms of capital.

Question 2

In the absence of externalities, which of the following will produce the efficient quantity for society?

Accepted Answer

A monopoly that practices perfect price discrimination will produce the efficient quantity for society because it charges each consumer their maximum willingness to pay and produces until marginal cost equals marginal revenue, which is the socially efficient output level. Without externalities, there is no market failure caused by market power, and a monopoly practicing perfect price discrimination will allocate resources efficiently.

Question 3

The most efficient water use occurs under a _____ plan.

Accepted Answer

Marginal cost pricing is considered the most efficient water use plan because it charges users based on the additional cost of supplying each additional unit of water, encouraging conservation and efficient use.

Question 4

Under the Gordon fisheries model, without intervention, fishers keep entering until … (you might want to draw the graph as a reminder)

Accepted Answer

Under the Gordon fisheries model, the equilibrium occurs when the social marginal cost equals the social marginal revenue. This implies that the marginal cost of extracting an additional unit of fish should be equal to the marginal revenue generated by the sale of that unit of fish. Therefore, the correct answer is D, which says that the fishers keep entering until the marginal cost equals average revenue.

Question 5

According to Hotelling's rule,

Accepted Answer

Hotelling's rule states that the net price or marginal rent of a non-renewable resource should rise at the rate of interest or discount rate over time, reflecting the increasing scarcity and opportunity cost of the resource.

Question 6

A problem with hydrogen as an alternative fuel is

Accepted Answer

Although hydrogen is a clean and efficient fuel source, it is difficult to store and distribute. It must either be compressed or liquefied, both of which require a lot of energy and specialized equipment. Additionally, hydrogen is not readily available in large quantities and must be produced from other sources, such as natural gas or water, which also requires significant energy inputs. These challenges make it difficult to create a reliable and robust infrastructure for hydrogen fuel.

Question 7

Greenhouse gases are

Accepted Answer

The answer of Greenhouse gases are
...

Question 8

-Consider a fishery with annual growth as shown by the curved line in the figure. For each of the five possible starting stock levels, indicate what the fish stock level would be in the long run (that is, after many periods) if there were a continued annual catch of Catch_A. S_A : , S_B : , S_C : , S_D : , S_E :

Accepted Answer

The answer of 
-Consider a fishery with annual growth as...

Question 9

Recently 695 residents filed a lawsuit against a nearby slaughterhouse that sprayed wastewater on fields, allegedly tainting wells and causing illness. Suppose that, if the lawsuit continues to trial, both sides expect the residents to receive a jury award of $2 million. The additional legal fees if the case proceeds to trial will be $300,000 for the residents (the plaintiffs) and $400,000 for the slaughterhouse (the defendant). On the number line below, label and specify the dollar amount of the expected jury award (J), each side's threat point (T_p and T_d), and the settlement range. Assume both sides are risk-neutral and seek to maximize their money. $$\longleftrightarrow$$ a. What is the bargaining rent in this case? ______ b. If the slaughterhouse can make a credible (non-Sincerity Rule) final offer, what should it be? ______ c. If the residents make a Sincerity Rule offer, what should it be? ______ d. Identify one alternative dispute resolution technique discussed in the textbook that involves a third party who makes a binding decision.

Accepted Answer

The answer of Recently 695 residents filed a lawsuit against...

Question 10

Suppose that goldfish in the local pond live for 2 years. At the end of their first year they reproduce with a TFR of 4; in their second year they just swim around, and then die when the period is over. There are equal numbers of males and females at each goldfish age level. Indicate the total number of fish after 1 and 2 years under the following scenarios:
a) In the beginning there are 2 fish in their first year of life and none in their second year of life.
after 1 yr. _____ after 2 yrs. _____
b) In the beginning there are 10 fish in their second year of life and no fish in their first year of life.
after 1 yr. _____ after 2 yrs. _____

Accepted Answer

The answer of Suppose that goldfish in the local pond...

Question 11

Wild American ginseng roots can be sold legally if they are harvested from plants over 5 years old in appropriate places during a designated season. Poachers of American ginseng break these rules and threaten the species' existence. Possible policies to address the problem include:
A) a program that increases the supply of legal ginseng
B) a complete ban on ginseng production
C) a campaign to discourage ginseng purchases 
The graph below shows the illegal supply, the total (illegal plus legal) supply, and the demand for wild American ginseng. Assume that none of the policies affect the illegal supply curve.
How many thousands of pounds of illegal ginseng will be supplied per year if
a) none of the policies is implemented. _____ 
b) only plan (A) is implemented, and it increases the legal supply by 2 thousand pounds per year at each price but has no effect on the demand curve. _____
c) only plan (B) is implemented, which eliminates the legal supply of ginseng but has no effect on the demand curve. _____
Suppose only plan (C) is implemented. Draw the new demand curve such that the resulting quantity of illegal ginseng supplied is 2 thousand pounds per year.

Accepted Answer

The answer of Wild American ginseng roots can be sold...

Quiz 1: Environmental Economics and Natural Resource Management