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Suppose we are evaluating a program that reduces greenhouse gas emissions, and the marginal benefit of the program is larger than the marginal cost at the current time. How should we adjust this program to achieve a more optimal outcome with higher net benefits?
Scale back the program and allow for more greenhouse gas emissions
Increase the program activity in order to further reduce greenhouse gas emissions
The current level of emissions is optimal, and the program should not be changed
Illustrate what is the marginal income product of hiring one low-skilled worker to clear woodland for one month.
'The Theory of Individual Behavior', and much of the chapter is devoted to the use of indifference analysis to build a framework for demand theory. Indifference analysis goes to great lengths to explain consumer behavior and how consumers make choice..
Describe what a manufacturer of each product might do in the short run to raise production.
If a rise in incomes is the same proportion for both low-income and high-income workers.
Proposals for modifications of the law are formulated by committees. Under the closed rule, the legislature may either accept or reject a proposed modification, but may not propose an alternative.
What does the economy look like when the economy is in an unemployment gap? What type of unemployment rate is it compared to the Natural Rate of unemployment? What about inflation?
If an individual activity doesn't affect interstate commerce, but the aggregate of that activity does, federal commerce jurisdiction exist under the:
Consider an intertemporal model in which representative households choose consumption, c(subscript t+1) and two types of bonds b(subscript 1,t+1) and b(subscript 2,t+1) to maximize their utility over time, prices are perfectly flexible, and all marke..
An economy is initially at the natural level of output. There is an increase in government spending. Use the ISLM model to illustrate both the short-run and long-run impact of this policy change. Be sure to label: i. the axes; ii. the curves; iii. th..
A stock is projected to pay a dividend of $3 in 1 month. A three month at-the-money European put option on the stock has a premium that is $2.751 higher than the premium for a three-month-at-the-money European call option on the stock. The continuous..
At the end of the life of the project, the equipment can be sold for a profit with salvage value of 11,000. The MARR is 6.0 percent. Calculate the present worth.
Two countries, Haiti and the Dominican Republic, produce fruits and timber. Each island has a labor force of 1200 and the monthly productivity of each worker is as follow Basket of fruit Board feet of timber Haiti 10 5 Dominican Republic 30 10 a. Whi..
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