ECON 421, Spring 2015, Exam Review Study Sheet:
Graphs: Know and be able to correctly draw and label all graphs in Ch’s DF 11, 12
and TL 5, 14
Problems: Review all problem sets, and in-class problems worked, including 2 and
3-firm cases (won’t test on n-firm scenarios). There will be some similar problems
on the exam.
Terms
Daly Ch. 11
Stock (depletion) vs. fund (depreciation)
Renewable vs. nonrenewable
Indestructible
Recyclable
Rival vs. nonrival
Excludable vs. nonexcludable
Fossil fuels, minerals, water, solar energy, Ricardian land, renewable resources,
ecosystem services, waste absorption capacity
Marginal extraction cost
Marginal external cost
Marginal user cost
Hotelling rule
Daly Ch. 12
Sustainable yield
Maximum sustainable yield
Per-unit effort curve
Total revenue and total cost curves for biotic resources
Maximization of net present value
Profit maximization of wild resource under open access regime
Exploiting wild vs. bred (farmed) populations
Natural dividend
Tietenberg Ch. 5
dynamic efficiency
environmental sustainability
Hartwick Rule
strong sustainability
weak sustainability
two-period model
Tietenberg Ch. 14
absorptive capacity
command-and-control (CAC) or regulation
cost-effective allocation (of uniformly mixed pollutants)
double dividend
efficient allocation of pollution
emission charges
cap-and-trade
emission standard
fund vs. stock pollutants
local vs. regional vs. global pollutant
market allocation of pollution
marginal cost of pollution control/ emission reduction
Tietenberg Ch. 8
Oil cartels
Fossil fuel prices
Transition to renewables
Tietenberg Ch. 16
Greenhouse gases
Adaptation
Mitigation
Issue linkage