1. a) Explain what the blue band in Figure 6-6 represents. Why is it important?   b) For each category of use, give a specific example (not any of the examples given in the text) of how water might be extracted and used, but not consumed.   c) For which category of use is in the blue band growing wider fastest? What does this mean? Why is this important?

Please summarize key concepts and vocabulary of natural resource economics—what are major natural resource sources, what methods are used for extraction, what influences production, and how does consumer demand shape consumptions and natural resource utilization?

8. Ann and Barbara are computer programmers in Nashville who are planning to move to Seattle. Each owns a house that has been appraised for $100,000. Ann's house is one of hundreds of highly similar houses in large well-known suburban development, and Barbara's is a one of a kind house built from her architects design. Who will benefit more by hiring a realtor to assist in selling her house?

Define and give an example of a common resource.  Without government intervention, will people use this good too much or too little?  Explain.

Externalities - Definition and examples An externality arises when a firm or person engages in an activity that affects the wellbeing of a third party, yet neither pays nor receives any compensation for that effect. If the impact on the third party is adverse, it is called a ___________ externality.   The following graph shows the demand and supply curves for a good with this type of externality. The dashed drop lines on the graph reflect the market equilibrium price and quantity for this good.

Problem 3: Agricultural Household Chantal lives with her husband and three children in the village of Gicymbi in Northern Rwanda. Her family is an agricultural household that produces beans for household consumption and if their production is more than what they consume, they sell the remaining in the local market of Gicumbi, If they produce less than they must consume, her household purchases beans from the local market. In this problem, we will answer how the welfare of Chantal's household gets affected when price of beans changes. (b) What happens to the well-being (utility) of Chantal's household, i.e., the total effect of a price change in beans is ambiguous. Explain in a few sentences using the concepts of price effect and profit effect. To complete the description of Chantal's household consumption, let us assume they consume two more items cassava and maize, which they do not produce. The following table provides the details of their production and consumption. Fill out the…

Match the good with it's best characterization.If it is a Public good, private good, club good, or open access resource 1. Poke Bowl 2. Clean air 3. Blue fin tuna 4. Private beach 5. Over-crowded public beach 6. Uncrowded public beach 7. Open-source software (liKe Python, R, an Linux) 8. Commercial software (lIke Microsoft Word) 9. Organic, free-range chicken