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Resource Curse
Policy Discussion Questions
Submit your answers by Friday (2.5 points each).
1. From your perspective, how would suggest managing resources to limit the effects of the resource curse?
2. If you were to conduct a Cost-Benefit Analysis of an open pit mine, other than accounting costs (construction, labor, operations and maintenance), what other costs would you include?
Note: there is no right or wrong answer here.
Compute how many acres, hectares each person wold occupy if all U.S. residents.
Edmund has the utility function U(x, y) = 2xy + 1. The prices of x and y are both $1 and Edmund has an income of $20. How much of each good will he demand? A tax is placed on x so that it now costs Edmund $2 while his income and the price of y stay t..
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Graphically show and verbally argue that a Walrasian equiblirium in an economy is Pareto efficient as long as preferences are locally non-satiated. How about convexity? ?s it important for this theorem to hold ?
Suppose that in a year an American worker can produce 100 shirts or 20 computers and a Chinese worker can produce 100 shirts or 10 computers. Explain at what price of computers (in terms of shirts) the two countries might trade.
A monopolist faces demand given through: P=100-4Q and has marginal costs given through: MC=10+2Q Create the demand, marginal revenue and marginal cost curves. Compute and demonstrate how much this firm will sell and what it will charge.
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