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You are a policymaker tasked with tasked with deciding whether to adopt a carbon tax policy today in order to prevent possible future damages from climate change. (Assume for this problem only the policies in your country matter for climate-related economic damages.) Implementing this carbon tax is estimated to cost the economy $10 billion dollars, but the benefit from avoided climate damages is estimated to be $1 trillion dollars in 100 years time.
What would the discount rate have to be to justify this as a sound investment (you can round the discount rate to the nearest tenth of a percent)?
What about if the benefits from avoided climate change arrived in 50 years?
What about if the benefits only arrived in 200 years?
How do each of these discount rates compare to today’s risk-free real interest rate? Why does this matter?
consider the following problem there are two generators in this system and there is a load of 1000mw. there is only one
What is the difference between elastic and inelastic demand. Please be precise. If a restaurant increases its price of coffee from $ 1.00 to $ 1.20 and quantity demanded falls from 100 cups to 80 cups. How can I compute the price elasticity of dema..
Explain what is meant by the hedonic wage function for a job characteristiv such as the probability of an injury. Go on and explain how the function can be deruved from worker prefernces and production technologies.
If the actual real wage rate is above the equilibrium real wage rate there will be
In the middle of the decade , the party was over, and coffee wholesale prices started increasing because of some shortages caused by weather and the rising overall market prices again. Where is the new equilibrium price?
The night before an economic exam, you decide to go to the movies instead of staying home and working your MyEconLab study plan. You get 50 percent on your exam compared with the 70 percent that you normally score.
What is the key assumption needed to show how one can construct a numerical utility function out of just a preference ordering? Don't just draw a picture; explain what the assumption means and apply it to show how to construct that numerical util..
Given that two projects have the same rate of return of 12 percent each. The incremental rate of return is 15 percent. If MARR is 15 percent, decide which alternative should be chosen.
a) What is the socially efficient level of security?
the demand for a product can change due to many factors. Distinguish between a chang in demand and change in quantity demand. What are the determiniants of demand What are the determinants of suppy
Describe the industry and explain the general pattern of change of the particular market model and hypothesize the basic short-run and long-run behaviors of the model in the industry you have chosen in a "market economy."
Presume that the representative consumer’s preferences change, in that his/her marginal rate of substitution of leisure for consumption increases for any quantities of leisure and consumption. Describe what this change in preferences means in more in..
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