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1) Explain the CAC approach to air pollution? Have these policies worked in terms of reducing pollution? Were these policies efficient? Discuss. (Use the handouts in forming your answer, but not on the exam.)

 

2) What new types of policies have been developed to address air pollution? Why is it envisioned these will be more efficient? Use a mathematical example to show how tradable permits can be more efficient than CAC.

 

3) What have we learned about the sustainable use of resources and the ability to maintain the ability to produce into the future? Reconsider the discussion of the political discussion in the Dogs paper. When society decides that regulations are necessary, what should be the role of the government? How should the regulations be implemented in order to be efficient? How do markets fit into the social decision process? Use examples for your explanation.

 

4) How does Tietenberg suggest we smoothly transition to a sustainable future and avoid losing per capita welfare for future generations?

 

5) According to Jacobs, how can methods on innovation in an ecosystem be applied to an economy? Use examples.

 

6) What are the factors that cause some cities to develop into vibrant economies and cause others to remain small?

 

7) Differentiate between positive and negative feedback loops. Give examples of each with regard to natural resource utilization.  What is the importance of data collection and evaluation in understanding feedback loops?

 

8) Compare Tietenberg’s “menu of opportunities” with Jacobs’ vision of the conduit. What would Boulding think of this?

 

9) Imagine you are making a presentation to a group of high school students. How would you explain the importance of a regulated market economy? (Three words)  Select an example and describe how the system works. Keep in mind the goal of the system.

 

10) Imagine you are talking to a class of university freshman. They are concerned about what they should study. What challenges do you see in the future and how can those challenges be addressed by studying markets? Pick an example and explain how economics allows us to not only discover the challenge but also to find solutions. 

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