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Suppose two countries with domestic cap and trade policies are considering linking their two systems. country A has a cap of 30 tons of emissions, a domestic marginal cost of abatement of $12 and uncontrolled emissions level of 70 tons, while country B has a cap of 50 tons, a domestic marginal cost of abatement of $0.5a, where a is tons of emissions abatement, and an uncontrolled emissions level of 90 tons.
a. Before linkage what would be the prices in the two separate markets and how much abatement would each country choose?
b. If these two markets were linked by allowing each country to buy from and sell allowances to the other, what would be the prices in the two markets? How much would each country abate? Describe the transfer of allowances, if any, that would take place between the two countries.
On one hand, the WTO's role in international trade is becoming more significant. On the other hand, its verdict on the Brazil's Embraer versus Canada's Bombardier case did not seem to solve the problem.
If the price of a product decreases, we would expect: "Price" in the statement of the Law of Supply refers to: A decrease in demand and an increase in supply will: When producers (say, of roads) are not able to make all consumers pay for enjoying the..
Why did the federal government until recently put restrictions on interstate banking? Did those restrictions increase the stability of the banking system? What are some events that have changed the ability of the banks in U.S. to branch between state..
Calculate the after-tax nominal interest rate, then subtract off inflation to get the after-tax real interest rate for both cases.
Which of the following affects demand for money?
Pocoyo bakes cookies also Pato grows vegetables. In which of the subsequent cases is it impossible for both Pocoyo also Pato to benefit from trade.
Describe some forms of private spending that represent consumption and some forms that represent investment. The national income accounts include tuition as a part of consumer spending. In your opinion, are the resources you devote to your education ..
the original manufacturer is deciding whether they should continue production of the toy truck. If the estimated demand is $100,000 trucks, what is the breakeven price for the toy truck? Should you shut down?
The typical right wing/free market argument that leads to privatisation of government assets is that the government assets will be far more efficiently managed when in the hands of profit seeking capitalists, rather than being owned by the government..
q1. the simple is-lm model predicts which cutting the governments budget deficit will reduce output in the short-run.
What should you do with the outcomes that are not economic and may not be translated using monetary unit? (The answer can be more than one choice) Quantify the expected future results. Change the viewpoint of the problem.
Where Yp is potential GDP, Y is real GDP in billion of dollars and P is GDP deflator. By how much overall should the government expenditures change to achieve potential GDP level if MPC=0.8? Calculate the size of inflation/deflation associated with t..
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