ECON 481 NDSU Exam One
Resource Economics - Answer-Temporal Allocation of renewable and non-renewable resources. Deals
with private and common property regimes. NR QUANTITIES.
Environmental Economics Pt 1 - Answer-Cost-benefit framework for pollution control and resources
conservation. NR QUALITIES.
Environmental Economics Pt 2 - Answer-Concerned with the impact of the economy on the
environment, the efficient allocation of non-market environmental and natural resources, and the
regulation of economic activity to balance environmental, economic, and social goals.
Subset of Microeconomics - Answer-Natural Resources Economics
Principles of Economics - Answer-People face trade-offs
The cost of something is what you give up to get it
Rational people think at the margin
People respond to incentives
Trade can make everyone better off
Markets are usually a good way to organize economic activity
Governments can sometimes improve market outcomes
A country's standard of living depends on its ability to produce goods and services
Prices rise when the government prints too much money
Society faces a short-run tradeoff between Inflation and unemployment.
, Policy Issues - Answer-Timber v Endangered Species
Clean Air v Cheap Gasoline
Mining v Public Lands Recreation
Power v Recreation
What is a market? - Answer-An institution of bringing buyers and sellers together to trade goods,
services, or resources
Change Quantity Demanded - Answer-Change comes from a decrease or increase in the product price
we're interested in.
Change in demand - Answer-Come from the influence of non-price factors influencing purchases
Price Rationing - Answer-Allocates goods to those who are wiling to pay most and allocates supplies by
those who can sell most cheaply
In Perfect Competition: - Answer-Price equals marginal revenue
Competitive Supply - Answer-Price is equal to marginal cost and the competitive firm's supply curve is
it's MC curve.
As price increases, the firm responds by re-adjusting its profit maximizing output by moving to a higher
level on its marginal cost curve.
Trade - Answer-Good for the environment because trade leads to more efficient production with less
natural resource inputs.
More consumption = - Answer-Greater Utility
Resource Economics - Answer-Temporal Allocation of renewable and non-renewable resources. Deals
with private and common property regimes. NR QUANTITIES.
Environmental Economics Pt 1 - Answer-Cost-benefit framework for pollution control and resources
conservation. NR QUALITIES.
Environmental Economics Pt 2 - Answer-Concerned with the impact of the economy on the
environment, the efficient allocation of non-market environmental and natural resources, and the
regulation of economic activity to balance environmental, economic, and social goals.
Subset of Microeconomics - Answer-Natural Resources Economics
Principles of Economics - Answer-People face trade-offs
The cost of something is what you give up to get it
Rational people think at the margin
People respond to incentives
Trade can make everyone better off
Markets are usually a good way to organize economic activity
Governments can sometimes improve market outcomes
A country's standard of living depends on its ability to produce goods and services
Prices rise when the government prints too much money
Society faces a short-run tradeoff between Inflation and unemployment.
, Policy Issues - Answer-Timber v Endangered Species
Clean Air v Cheap Gasoline
Mining v Public Lands Recreation
Power v Recreation
What is a market? - Answer-An institution of bringing buyers and sellers together to trade goods,
services, or resources
Change Quantity Demanded - Answer-Change comes from a decrease or increase in the product price
we're interested in.
Change in demand - Answer-Come from the influence of non-price factors influencing purchases
Price Rationing - Answer-Allocates goods to those who are wiling to pay most and allocates supplies by
those who can sell most cheaply
In Perfect Competition: - Answer-Price equals marginal revenue
Competitive Supply - Answer-Price is equal to marginal cost and the competitive firm's supply curve is
it's MC curve.
As price increases, the firm responds by re-adjusting its profit maximizing output by moving to a higher
level on its marginal cost curve.
Trade - Answer-Good for the environment because trade leads to more efficient production with less
natural resource inputs.
More consumption = - Answer-Greater Utility
