Suppose you are using risk-benefit analysis to evaluate a


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.

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Microeconomics: Suppose you are using risk-benefit analysis to evaluate a
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