1. Formulation from an Economic Perspective An Exercise:

2. Economic Formulation Exercise Objective: The student will become familiar with some basic roles in plan formulation, including economic principles such as: Net economic benefits Benefit-to-cost ratio Incremental justification NED & NER benefits

4. Questions: 1. Which is the best plan to the economist? 2. Which might be best to the local sponsor? 3. Which would be the best plan for resource agencies? 4. Is going from 0.02 protection to 0.01 protection incrementally justified? How about 0.01 to 0.005? 5. Which would you select?