ANSWER:
Social discount rate = pure rate of time prefrence + elasticity of marginal utility of consumption * growth rate = 1% + 2 * 4% = 1% + 8% = 9%
so the correct answer is option d.
QUESTION 27 If the pure rate of time preference is 1%, the elasticity of the marginal...
If the pure rate of time preference is 1%, the elasticity of the marginal utility of consumption is 2, and economic growth 4%, what is the social discount rate? O 1% 2% 7% 9%
SULOTION If the pure rate of time preference is 1%, the elasticity of the marginal utility of consumption is 2, and economic growth 4%, what is the social discount rate? 01% ООО QUESTION 28 In the context of long-term environmental change, are capital markets perfect? Yes, they reflect preferences for investment now versus investment later O Yes, they are based on many persons decisions about savings and investment O No, interest rates in capital markets are lower than individual interest...
QUESTION 19 What is the pure rate of time preference? O The value placed on consumption The social discount rate O The value placed on each generation The discounted value of economic growth
2 points QUESTION 25 Which would you prefer? Option X: $200 in five years time if the discount rate is 2%; or Option Y: $100 in five years time if the discount rate is 2%. They are both worth $100 in five years time Option X Option Y It depends on the market interest rate 2 points s QUESTION 26 What is a generally accepted value for the social discount rate? 3% 20% 2.00% 0.20% 0% 2 points sa QUESTION...
Completion Status QUESTION 19 What is the pure rate of time preference? The value placed on consumption The social discount rate The value placed on each generation The discounted value of economic growth QUESTION 20 With a lower value for the discount rate, that means the incentive to address climate change problems will: Rise- the future is worth more Fall à the future is worth less and climate change is in the future Stay the same Rise - the future...
QUESTION 10 What is the elasticity of the marginal utility of consumption? O A measure of future uncertainty O A measure of how much richer people value extra consumption A measure of the social discount rate O A measure of present value consumption
Question Completion Status: QUESTION 10 What is the elasticity of the marginal utility of consumption? OA measure of future uncertainty A measure of how much richer people value extra consumption A measure of the social discount rate A measure of present value consumption QUESTION 11 Why might gamma discounting make sense? People do not discount at constant rates People do discount at constant rates People do not like the future as much as the present People like the future more...
D | Question 2 1 pts In the "Ramsey Rule" for deriving a social discount rate, the parameter 8 (i.e. the pure rate of time preference) reflects our innate preference for the present over the future. Where does this preference come from? O Our sense of morbidity O Our sense of impatience. O Our sense of mortality e All of the above.
D | Question 2 1 pts In the "Ramsey Rule" for deriving a social discount rate, the parameter...
Question 14 1 pts If the price elasticity of supply was calculated as 0.40 for a product and the price increases by 12%, what would happen to the quantity supplied? O Quantity supplied would increase by 8%. O Quantity supplied would increase by 6.3%. O Quantity supplied would increase by 4.8%. Question 15 1 pts As we move along a typical negatively sloping, linear demand curve O the elasticity is constant. it results in elasticity and slope being the same....
The social rate of discount depends on all of the following factors except A. the extent of risk aversion for society as a whole. B. the rate of dissipation. C. the expected rate of real economic growth. D. the "rate of pure time preference" for society as a whole.