Mock Exam
9 important questions on Mock Exam
In the absence of negotiations between farmers and the waterworks company, how much would you expect that farmers pollute?
What is the maximum willingness-to-pay of the waterworks company to have farmers reduce their level of pollution to Q?
Name three potential problems that may be encountered that make it difficult to achieve an efficient outcome from the aforementioned negotiations?
2. Asymmetric information.
3. Property rights are not well-defined so we don't know the starting point for negotiations.
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How can a CBA be used in the making of a decision?
What is the benefit-cost radio?
How does Traditional Supply Management work?
What are two primary problems with Traditional Supply Management?
2. Little attention to environmental and social impacts.
What is a main difference between Traditional and Integrated River Basin Management?
What are two advantages of increasing block rate structure over uniform rate structures?
2. More economically efficient by directing water use from low to high value uses.
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