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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?
Coal prices moved in sympathy with oil prices, with the result that coal companies earned pure economic profits. Since coal is a homogeneous good and the market is competitive, what happend in this market.
The demand in the cake market is Qd =500 - 10p and unrestricted supply is Qs = 100 + 10p. Suppose the government imposes a baker's license that reduces cake supply to Q¢s =10p. Calculate the numerical values of the following:a. Price that cons..
Determine what should you do to maximize benefits with respect to values after you acquire a substitute product. Which values should you change more?
Based on the information for the U.S. for the period 1970 to 1983, the following regression results were obtained, GNPt = -787.4723 + 8.0863M1t r2 = 0.9912
Compute the opportunity cost in forgone tanks for each additional truck produced: Truck output 0 1 2 3 4 5 Tank output 5 4.5 3.8 3.0 2.0 ..
Calculate your total tax liability under the 2013 federal income tax structure, assuming your income is $75,000. Assume you are single and using the personal exemption of $3,900 and the standard deduction of $6,100. Calculate your effectiv..
Say that investment increases by 100 for each interest rate drop of 1 percent. Say also that the expenditures multiplier is 3. If the money multiplier is 5, and each 5-unit change in the money supply changes the interest rate by 1 percent, what op..
Suppose you have some information on a sample of investment bankers, and are interested in impacts of height and of seniority on their success.
Suppose that due to whatever reason, reserve demand changes and you forecast the reserve demand to now be Rd = 270 - 30 iff. In order to keep the federal funds rate at target, what must the open market desk do? Be specific and show this developmen..
TP TFC TVC 0 $45 $01 45 170 2 45 320 3 45 450 4 45 620 5 45 800 6 45 ..
The projects start to pay off in year 1 and continue to pay off all years thereafter. Interest is paid in perpetuity, in year 1 and every year thereafter. In addition, assume that if the projects are not done, then GDP=Q=C=$200 in all years, so th..
In a population Y=100 and Y=43. Use the central limit theorem to answer the following questions a. In a random sample of size n=100, find P(Y or = 98).
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