Question 1: With your economic knowledge of inefficiencies in markets, explain why poverty reduction programs by the government can be justified.
Question 2: The government of Tanzania is proposing a new national park and would like to use the Travel cost approach to evaluate the potential benefits. Describe the Travel Cost approach and briefly explain the processes involved. What are some of the problems with the approach?
Question 3: You have been asked to conduct cost benefit analysis of a government program. There are uncertainties associated with the values of the variables used in the cost benefit analysis. Briefly describe two sensitivity analysis approaches you would use to deal with the uncertainties.