Resource economics UE Past Papers Questions.


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(2472) Question Category: Short answers

Congratulations! you have won a cash prize from Tatu Mzuka that you can use to invest in any natural resource project in Tanzania. You have two payment options

  1. Receive 50 million now or
  2. Receive 50 million after three years.

As an economist which option will you choose? Give reason(s) for your choice.

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(2473) Question Category: Mathematical Calculation

Assume that you were given the running costs for the power tiller for each year as follows.

Item 2013 2014 2015 2016 2017
Fuel oil and services 100 105 110 110 110
Maintenance and insurance 40 70 110 160 220
Working days per year 320 300 280 260 240

What is the daily cost (including depreciation) for the power tiller for each of the five years by the declining balance method.

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(2474) Question Category: Short answers

When evaluating a resource such as forest, one may either use income value approach or cost based approach. Discuss the meaning of the two methodologies.

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(2475) Question Category: Short answers

    What is the purpose of calculating depreciation?
    

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(2476) Question Category: Mathematical Calculation

A power tiller was purchased in 2013 for TZS 900,000/=, its anticipated life time is 5 years and the estimated scrap value in TZS 100,000/=. What is the yearly depreciation by straight-line method(33.5%).

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