Intermediate Microeconomics · free preview
Common Resources, Exhaustible Resources, and Course Summary
Open access overuses common pools, each fisher ignoring the crowding she imposes, property rights and quotas restoring the margin, exhaustible resources follow Hotelling's rule with price growing at the interest rate, 10 to 10.8 at 8 percent, the scarcity rent compounding, and the course closes from budget lines to market failure in eighty lessons.
1. The commons
The commons
2. Exhaustibility
Exhaustibility
3. The course closed
The course closed
4. Module closed
Module closed
5. The tragedy's logic
Why does open access overuse the common pool?
6. The quota repair
How do individual transferable quotas fix the commons?
7. Hotelling's rule
What does the Hotelling rule say about the resource price path?
8. The course's one method
What single instrument has run through all eighty lessons?
9. The next-period price
Compute the next-period price, 10 times 1.08, and write the number.
10. Two periods out
Compute the price two periods ahead, 10.8 times 1.08, and write the number to two decimals.
11. The path's growth
The price path runs 10, 10.8, 11.66. What is the pattern?
12. Hold or pump
The price is 10, interest is 8 percent, extraction cost is negligible. When does the owner pump?
13. The quota's arithmetic
How do individual transferable quotas repair the over-fished commons?
14. The course's one instrument
What single tool has run through all eighty lessons from demand curves to Hotelling paths?
15. The first period's price rise
From an initial price of 10, compute the rise to the next period's price, 10.8 minus 10, and write the number.
16. The third period's price
With the price at 11.66 after two periods, compute the third period's price as 11.66 times 1.08, and write the number to two decimals.
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