Define what is revenue, how is it generated, and what change in the allocation of society’s scarce resources would be created by an increase in revenue.

1. (A) If an increase in pollution abatement or environmental quality would increase social net benefit, what change in the allocation of society’s scarce resources between “other things” and the environment would be necessary to capture the increase in net benefits?

(B) Define what is revenue, how is it generated, and what change in the allocation of society’s scarce resources would be created by an increase in revenue.

(C) What is cost, how is it generated, and what change in the allocation of society’s scarce resources would be create by an increase in the cost of an input.

(D) Explain how a current user of land, to produce a private good such as agriculture or timber, would become a producer of a public good such as wildlife, biodiversity or carbon sequestering.

(E) Explain why having no price required to be paid for using or consuming environment services results in underproduction of environmental services.