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Question1. Evaluate whether the following statements are true, false, or uncertain. Use specific models to support your answer where possible. .
a. The theory of environmental regulation that involves endogenous politics is an example of a positive theory of regulation
b. Although tradable permits and emission taxes both yield a cost-effective allocation of emission reductions, emission taxes are costlier to the economy because of tax interaction effects.
c. With a dominant firm in a market for pollution permits, it does not matter (for efficiency) how permits are initially distributed
d. Firms are less likely to exaggerate their potential abatement costs if the proposed policy is an emissions standard, rather than a tax.
Question2. Explain at least three important distributional challenges associated with global climate change policy.
Question3. Explain four of the advantages of global price approaches to climate change advocated by Nordhaus (2007b).
Determine what does the Stolper-Samuelson theorem suggest in case of a country being opened to international trade?
Based on your reading, which market structure is more applicable for the market for building commercial aircrafts, when there are two major manufacturers of the commercial airplanes and little possibility of entry by new firms:
Discuss how do government bureaus differ from private firms and explain why is there good reason to believe that bureaucrats will seek to supply more than efficient level of their output in any year?
Suppose a scenario where you are an entrepreneur considering to increase your production of kitchen gadgets. You need to pay back a loan of $5,000,000 over 5-years.
Determine the role would technology play if there was a move to harmonization of accounting standards across countries? Explain your reasoning.
Questions based on International Business
Argyle is a huge, vertically integrated company that produces sweaters from a rare type of wool manufactured on its sheep farms. Argyle has adopted a approach of selling wool to firms that compete against it in the market for sweaters.
Consider two Countries that share the same technology, South Africa and the UK, and two goods, Diamonds and Tea
One year ago, a United State investor converted dollars to yen and purchased one hundred shares of stock in a Japanese company at a price of 3,150 yen a share.
Suppose last year's real GDP was $7,000 billion, this years nominal GDP is $8,820 billion, and GDP-deflator for this year is 120. Determine the growth rate of real GDP?
Select a United State multinational corporation. In terms of currency denomination, how the firm prices its revenues and costs.
A Corporation stock is trading at $120 per share. The firm plans to declare a 3 for 2 stock split. The stock split is expected to raise the companys market capitalization by 5%.
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