1. Demand (4 points) a. What is Willingness-to-Pay (WTP) and what are three(3) determinants of WTP? b. Consider a market that consists of 3 groups of individuals. The table below illustrates the marginal willingness to pay for each group of individuals:   Individual 1 Individual 2 Individual 3 WTP for first ton coal ($/ton) $60/ton $80/ ton $50/ ton WTP for second ton coal ($/ton) $52/ ton $70/ ton $35/ ton WTP for third ton coal ($/ton) $40/ ton $50/ ton $20/ ton WTP for fourth ton coal ($/ton) $20/ ton $35/ ton $18/ ton WTP for fifth ton coal ($/ton) $18/ ton $30/ ton $13/ ton WTP for sixth ton coal ($/ton) $16/ ton $20/ ton $9/ ton Using the table above, graph the market demand curve for coal at a market price of $20/ton, illustrating the quantity demanded.   c. Illustrate the change in demand if all individuals receive an increase in income. 2. Supply (3 points) a. What are two(2) determinants of supply? b. The table below gives the marginal costs for three(3) individual coal producers.   Individual 1 Individual 2 Individual 3 MC for first ton coal ($/ton) $18/ton $3/ton $1/ton MC for second ton coal ($/ton) $20/ton $5/ton $2/ton MC for third ton coal ($/ton) $24/ton $9/ton $4/ton MC for fourth ton coal ($/ton) $30/barrel $13/ton $7/ton MC for fifth ton coal ($/ton) $38/barrel $20/ton $12/ton MC for sixth ton coal ($/ton) $50/barrel $30/ton $20/barrel Using the table above, draw the market supply curve for the coal market given a market price of $20/ton, illustrating the quantity supplied.  b. Illustrate the change in supply for a policy implemented that requires increases the price of coal permits required for mining coal.   3. Coal Market (8 points) a. Using the information in questions (1) and (2), draw the market diagram for the coal market. b. Indicate the market equilibrium and the equilibrium condition. c. What is economic efficiency and what are three(3) of the required conditions for this equilibrium to be efficient?

  What are the economic characteristics of a common pool or open access resource? What is the difference between the two(2)? Using a graph, illustrate the equilibrium conditions and quantities for a private resource compared to an open access resource [NB: indicate where MB=MC and TB=TC and the corresponding Q* and QOA]. (3 points) Assume a market in which there is a subsidy to producers of a fossil fuel, such as oil.  Use a diagram to show how the removal of the subsidy can move the market to a new market equilibrium that represents an efficient allocation of price and quantity.  What will be the likely environmental impacts, if the result is less oil produced and consumed? (2 points) Define market failures as a general concept. Specifically, what are externalities and how do they cause markets to fail? (2 points) Even if all subsidies are removed, the market allocation for oil is not efficient if oil production and consumption still leads to an adverse externality, such as pollution.  Use a diagram to show how additional policies need to be adopted to internalize the marginal external costs (MEC) of pollution to achieve an efficient market outcome. (2 points) Using a diagram, show how the optimal level of polluting output can be alternatively reached by bargaining, regardless of whether the polluter or sufferer has the right to pollute. (2 points) What are two(2) limits to the Coase Bargaining solution? (2 points) Use a diagram to show that establishing a limit on the amount of polluting output can lead to an efficient market outcome, where compliance is mandatory and noncompliance leads to penalties.  What information is needed to apply such a standard? (2 points)

Explain in detail three(3) reasons it is so difficult to implement policies for a green economy.

Explain the relationship between economic welfare and environmental degradation as described by the Environmental Kuznets Curve. What are three(3) shortcomings of this theoretical relationship?

  Provide a definition for economics. (1 point) Define Boulding’s (1966) concept of the frontier versus spaceship economy. How does this relate to the linear and circular economy? (1 point) Define sustainability. What does this mean for economists? (1 point) Compare and contrast the pessimistic and the optimistic view of natural resource and environmental economics. (2 points) Compare and contrast weak sustainability and strong sustainability. (2 points)

a. The female ovaries and the male testes are a part of which body system? b. Can these organs be members of more than one organ system? Why or why not?

You may also download the exam and fill in answers. 1. World population is projected to increase to over 9 billion people by 2050. Income/capita is also expected to increase by 2050.  This has important implications for future food demand and availability. What are the options for increasing agricultural production to meet these needs and what are the constraints of meeting future food demand? (6pts) Explain five(5) market/policy failures and policy options you would propose to address this problem of land use. (12 pts)   Is economic scarcity of minerals and energy a myth or reality? State whether you side with “scarcity myth” or “scarcity reality”, and briefly explain why. (4 pts) What are some key policy issues that impact the scarcity of minerals and energy? (4pts)   Overfishing is leading to the collapse of many fish stocks across the globe. Explain how property rights or lack of property rights may determine the stock of fish. (4 pts) What policy options would you propose to address this, and why? (8 pts)   Tropical forest conversion continues at an alarming rate. Explain how competing land uses can explain the continued conversion of forest land. (6 pts) What policy options could we implement to address the loss of tropical forests? (8 pts)   Emissions of greenhouse gases are projected to exceed the “2oC global carbon budget” in the next 10-15 years. Describe the science behind ozone depletion. (5 pts) What are the underlying economic causes of ozone depletion? (7 pts) What proposals would you advocate to address ozone depletion and its economic impacts? (5 pts)   The United Nations Sustainable Development Goals (SDGs) provide targets to guide countries towards a more sustainable path. If you were attending the next UN Conference on the SDGs, discuss three policy options, their mechanisms and their environment impacts that you would put forward, and why? (6 pts)

Name three differences between carbohydrates and lipids both in their structure AND function(s). Use the following format: 1. Carbs ______, and lipids _________. (e.g. Dogs have four legs, and birds have two wings and two legs)  

Which layer of the epidermis is the outermost protective region that contains keratinized cells?

Cartilage belongs to which of the following tissue types?