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1) Compute the discount factor 1/(1+r)^t for r=1, 5, or 10 perent interest rates and t=30 and 50 years. remember that 1 percent is .01. based on your computation, is teh choice of discount factor important for deciding whether to do somehtinga bout global warming today? why or why not?
2) (a) why might there be a negative relationshp between gross domestic product (GDP) and environmental quality for a country? why might there be a positive relationship between GDP and environmental quality?
(b) do you expect all pollutants for one coutnry to have the same shape of the environmental kuznets curve? if so, what shpae do you expect? if not, does the EKC always imply that a country can grow its way out of polluting?
(c) if increased GNP is associated with miproved environmental quality, does this relationship mean that a cleaner environment comes at no cost - acutally at postivie benefit - to GNP? if so, why is environmental regulation so often opposed? if not, what explanation exists for this relationship?
suppose a single firm produces all of the output in a contestable market. The market inverse demand function is P=100 -Q, and the firm cost's function is C(Q) = 2Q. Determin
(Case Study: Reforming Social Security and Medicare) Why are the Social Security and Medicare programs headed for trouble? When will the trouble begin? What possible solutio
A certain area has 7500 workers who are willing to work at any salary. The area has two places of employment, A and B. At A, the value of the marginal production of the worker
Describe the argument of yardstick competition to control policy-makers. What are the main difficulties if yardstick competition is to be applied in practice to control perf
Fit the Poisson regression model of section 10.3 by using the poisson, nl, and glm commands. In each case, report default standard errors and robust standard errors. Use the
The bank now sells $5000 in securities to the Federal Reserve Bank in its district, receiving a $5000 increase in reserves in return. What level of excess reserves does the
An aluminum cable of 6 mm diameter is suspended from a high-altitude balloon. The density of aluminum is 2700 kg/m3, and its breaking stress is 390 MPa. Determine the largest
Suppose a competitive firm can sell its output for $9 per unit. The following table gives the firm's short run production function. Labor Output 0 0 1 8 2 20 3 35 4 44 5 51
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