Evaluate a policy aimed at limitingthe use of a pesticide
Microeconomics
1. Suppose a dose-response function has been estimated to beR= -0.2 +
1.6D,whereD is emissions of sulfur dioxide in parts per million (ppm), andR is
theresponse measured as percent of agricultural crop decline. Determine if
there is athreshold, and if so, what is the threshold? If there is none,
explain how you know.
2. Suppose you are using risk-benefit analysis to evaluate a policy aimed at
limitingthe use of a pesticide applied to grain crops. Describe the risks and
benefits thatwould have to be estimated to conduct this analysis properly.
