Harvesting wood from the forest damages the quality of the


You have moved to a small village in a developing country. The people in this village rely on the nearby forest for the wood they use for cooking. The forest officially is a park and should not be harvested, but there are very few park rangers, and most of them have family reliant on wood products from the forest.

If people in the village work closely together on forest management, in what condition do you expect to find the forest? Why?

Harvesting wood from the forest damages the quality of the water that people in the village drink. If people in the village work closely together, do you expect them to manage the water quality problem well? Explain.

You observe that, in fact, the forest is being rapidly depleted. Why might this problem arise?

If the forest is being rapidly depleted, do you expect the water quality problem to be managed better or not as well as in (b)? Why?

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Microeconomics: Harvesting wood from the forest damages the quality of the
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