1. Read Chapter 2 (pages 6-14) of the 1997 paper "Cost-Benefit Analysis and Regulatory Reform: An Assessment of the Science and the Art" by Raymond Kopp, Alan Krupnick, and Michael Toman, available on the Resources for the Future web site.
   
   What are the three major strengths of CBA? Summarize the criticism of CBA based on equity. Summarize the critique of CBA presented by Mark Sagoff and Thomas Scanlon. Summarize the difference between a Pareto improvement and the Kaldor-Hicks criterion. Which one does CBA normally use as a decision rule? What are some of the criticism of this?
   
   
2. Locate the 2001 cost-benefit analysis conducted by the U.S. Environmental Protection Agency on the arsenic drinking water standard.
   
   Locate Table III.E-7. Based on this table, would you recommend a specific arsenic standard? Why or why not? If so, what standard would you propose? What do you consider to be the major limitation of this CBA?