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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).
Provide arguments in favor of trade restrictions, and what are the counterarguments? According to most economists, do any of these arguments really justify trade restrictions?
Suppose If factor-intensity reversals were indeed prevalent in the real world, how might this fact be used to describe the Leontief paradox?
The US presently has a current account deficit with Japan. Determinje what would happen to the dollar or yen spot exchange rate and the current account deficit if there were a decrease in Japanese investment in the U.S.?
Determine the government's role be with respect to regulating accounting companies in the wake of mismanagement and accounting irregularities?
Assume there is a decrease in British (United Kingdom) demand for French products like cheese, wine, perfume etc., with all else remaining unchanged we expect
Suppose that the inflation rate in the United State and japan are 4 percent and 2 percent, respectively and that the current spot rate is $.0083333 per Japanese yen or 120 Japanesse yen per one percent dollar.
ohn Dolan, CFA, is an international fund manager with Borderless Fund. Dolan is planning an investment in nation of Kenya. He is concerned with inflationary environment in Kenya,
You are between jobs and have decided to relocate to a city west of the Mississippi River, but you are unsure of what size or type of city you and your family can afford to live in.
On Friday, New York foreign currency market closed with a quote of $1.0900 per Euro. To stimulate economic activity the Federal Reserve hints that interest rates will be lowered by fifty basis points
Dubya make a decision to deposit $5,000 of his cash holdings in Wachovia. The required reserve ratio is set at 10 percent or .10 and the bank does not hold any excess reserves.
Discuss and post your responses to statement regarding best solution for preventing someone from making illegal copies of music datas.
Determine the disadvantages of forming corporate joint ventures between multinational corporations in the home and host country? Describe the theory of optimum currency areas, for example, the European economic community.
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