1. Rational people thinks at the margin in 150 words.

Rational people think at the margin means that they make decisions by considering the incremental
costs and benefits of an action. Marginal cost is the cost of producing one additional unit of a good
or service, while marginal benefit is the benefit received from consuming one additional unit of a
good or service. Rational people weigh the marginal costs and marginal benefits of an action to
determine whether or not it is worth taking. If the marginal benefit of an action exceeds the marginal
cost, the action is considered worthwhile. If the marginal cost exceeds the marginal benefit, the
action is not considered worthwhile.

This approach to decision-making is based on the assumption that people are rational and seek to
maximize their own well-being. By considering the incremental costs and benefits of an action,
rational people are able to make informed decisions that are most likely to lead to the best possible
outcomes.

For example, consider a farmer who is deciding whether or not to plant an additional acre of corn.
The farmer might consider the marginal cost of planting the additional acre, which might include the
cost of the seeds, fertilizer, and labor, as well as the marginal benefit, which might include the
expected revenue from selling the additional corn. If the marginal benefit exceeds the marginal cost,
the farmer will decide to plant the additional acre. If the marginal cost exceeds the marginal benefit,
the farmer will not plant the additional acre.

In this way, thinking at the margin helps rational people to make decisions that are most likely to
lead to the best possible outcomes.
2. people response to incentive discuss this statement in 150 words
People respond to incentives means that they are motivated by the rewards or consequences
associated with certain actions. Incentives can be positive or negative and can take many forms,
including financial rewards, praise or recognition, social status, and punishment or consequences.

When people are presented with an incentive, they weigh the potential rewards or consequences of
taking a particular action in order to determine whether or not it is worth their time and effort. If the
incentive is perceived as valuable and the effort required to achieve it is reasonable, people are more
likely to take the action. If the incentive is not perceived as valuable or the effort required is too high,
people are less likely to take the action.

For example, consider a student who is deciding whether or not to study for an exam. If the student
is offered a financial reward for getting a good grade on the exam, they may be more motivated to
study. On the other hand, if the student is threatened with punishment for getting a poor grade on
the exam, they may also be motivated to study in order to avoid the consequence. In both cases, the
student is responding to the incentives presented to them in order to make a decision about how to
allocate their time and effort.

Overall, the concept of people responding to incentives is an important one in economics and is
used to explain a wide range of behaviors and decisions. It is based on the idea that people are
motivated by the rewards and consequences associated with their actions and that they use this
information to make informed decisions.

3. role of liner programming in bullets in 70 words. Convert following into dual:

Maximize: 3x + 4y
Subject to: x + y ≤ 10 x - y ≥ 5 x, y ≥ 0

Linear programming is a mathematical optimization technique used to find the maximum or

minimum value of a linear objective function subject to a set of linear constraints. Some key
roles of linear programming include:
Solving problems involving the allocation of resources
Finding the optimal solution to problems with multiple conflicting objectives
Modeling and analyzing complex systems with many variables and constraints
Making decisions under uncertainty
Identifying the most efficient or cost-effective way to achieve a particular goal
Linear programming is used in a wide range of fields, including economics, business,
engineering, and operations research, and it is a powerful tool for solving complex problems that
involve the optimization of resources.

The resulting dual problem would be:

Minimize: 10z + 5w

Subject to: 3z + w ≥

5.find the net present value of the forestry project whose initial cost is $..find irr if the cost of the
project at the begining $..and return in 1 year is $...
To find the net present value (NPV) of a forestry project, you need to consider the initial cost of the
project, the expected returns from the project, and the time value of money. The time value of
money refers to the fact that money has value over time and that the value of money changes over
time due to factors such as inflation and interest rates.

To calculate the NPV of a forestry project, you can use the following formula:

NPV = (return in year 1 / (1 + discount rate)) - initial cost

In this formula, the "return in year 1" is the amount of money that the project is expected to
generate in the first year, and the "discount rate" is a measure of the time value of money. The
discount rate is typically expressed as a percentage and represents the rate at which the value of
money is expected to decline over time.
For example, if the initial cost of a forestry project is $100,000 and the expected return in the first
year is $150,000, and the discount rate is 10%, the NPV of the project would be calculated as follows:

NPV = ($150,000 / (1 + 0.10)) - $100,000 = $136,364 - $100,000 = $36,364

This means that the net present value of the forestry project is $36,364.

To find the internal rate of return (IRR) of the forestry project, you can use a similar approach. The
IRR is the discount rate at which the NPV of the project is equal to zero. In other words, it is the rate
at which the initial investment in the project is expected to be paid back.

To calculate the IRR of a forestry project, you can use the following formula:

IRR = (return in year 1 - initial cost) / initial cost

Using the same example as before, the IRR of the forestry project would be calculated as follows:

IRR = ($150,000 - $100,000) / $100,000 = 50%

This means that the internal rate of return for the forestry project is 50%. This indicates that the
project is expected to generate a return on investment of 50% over the course of the first year.
6. what is public good. How can it be seperated from other good discuss in 150 words
A public good is a type of economic good that is characterized by two key features: non-
excludability and non-rivalry. Non-excludability means that it is not possible to prevent someone
from consuming the good. For example, if a streetlight is a public good, it is not possible to
prevent someone from seeing the light. Non-rivalry means that one person's consumption of the
good does not reduce the amount of the good available for others to consume. For example, if a
park is a public good, one person's use of the park does not prevent others from also using the
park.
Here are a few key points to consider when differentiating between public goods and other
goods, including private goods, club goods, and common goods:
Non-excludability: Public goods are non-excludable, which means that it is not possible to
prevent certain individuals or groups from using the good. In contrast, private goods are
excludable, which means that it is possible to prevent certain individuals or groups from using
the good. Club goods are excludable, but the exclusion is only effective if the cost of exclusion is
not too high. Common goods are rival in consumption but non-excludable.
Non-rivalry: Public goods are non-rival in consumption, which means that one person's use of
the good does not reduce the availability or quantity of the good for others. Private goods, club
goods, and common goods are all rival in consumption, which means that one person's use of the
good reduces the availability or quantity of the good for others.
Provision: Public goods are typically provided by the government, while private goods are
typically provided by the market through a system of private ownership and exchange. Club
goods and common goods may be provided by either the government or the market, depending
on the specific circumstances.
Consumption: Public goods are typically consumed jointly by society, while private goods, club
goods, and common goods are consumed separately by individuals.
These points can help to differentiate between the different types of goods and understand the
unique characteristics of each type.