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Problem-
a) Using examples explain what is meant by:
i. negative externalities
ii. positive externalities
b) Explain what is meant by:
i. an isotim
ii. surrogate market prices
iii. political economy
c) What do you understand by the phrase, "any positive discount rate is the enemy of a one hundred-year-old tree"?
Additional Information-
These problems related to Economics, mainly macroeconomics. The problems are explores about externalities, both positive and negative, political economy, isotim, surrogate market prices and about the phrase, "any positive discount rate is the enemy of a one hundred-year-old tree". Externality is an economic agent which will not affect firms, but can affect the society either positively or negatively. Isotim is a map where manufactures can locate suppliers of raw materials. The answer has the answers to all of the questions in detail.
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