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Cost-based Methods - Restoration Cost
The restoration cost technique takes into account the cost of recreating the ecosystem. For example, degradation of forests results in a reduced flow of forest products and other functions. In order to restore the flow government intervention (in terms of policy implementation and afforestation) is required.
According to the restoration cost method, the value of forest functions is its restoration or recreation cost.
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A change in the legal statute may be able to force an equilibrium if it leads to a new equilibrium which implies some revised belief which sustains the equilibrium. Tirole (1996)
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Question 1: i) Describe the concept of circular flow of income. ii) Comment on the view that ‘GDP is the best measure to evaluate economic growth and standard of living'. iii)
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Ask quedoes privatisation decentralise economic power stion #Minimum 100 words accepted#
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