Homework Answers
12.
Correct option: (D) I and II only
Reason: Statements I and II are correct
A Pigouvian tax is imposed in case of negative externality in order to reduce consumption and production while a subsidy is imposed in case of positive externality in order to increase consumption and production
Deadweight loss is created in both types of externalities
13.
Correct option: (D) it is a very flexible approach
Reason: The CAC policy is one of the most flexible approaches. It allows firms to flexibly control their emissions
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UB.8;4 C. 7:5 D.14; 10 QUESTION 12 Which of the following statements is TRUE? 1. A...
QUESTION 10 The regulatory approach for global waming that is the most efficient is by: price....
QUESTION 10 The regulatory approach for global waming that is the most efficient is by: price. subsidies. quantity taxing profits. QUESTION 11 One implication of the Coase Theorem (per class discussion) market failure is the primary cause of most externalities. "everyone is guilty and that at least some of the "blame for any of externality falls on all of the parties. a Pigouvian tax is usually the best approach to force internalization of externalities. the party that causes the externality...
Which of the following statements are true regarding externalities? (Check all thot apply.) OA. In the...
Which of the following statements are true regarding externalities? (Check all thot apply.) OA. In the case of an extemality, the free market wil maximize social surplus. occurs when an economic activity has a spillover cost to a bystander. C. Deadweight loss can be either a foregone benefit or the total cost of the externality to society. D. For compuing efficient outcomes, economic agente adjust the demand curve to account for negative extenalities In the case of the negative extemality,the...
Question 1 True or false? (2 points) A positive externality does not lead to a deadweight...
Question 1 True or false? (2 points) A positive externality does not lead to a deadweight loss because more of the a. good should be produced, not less. b. (2 points) Economies of scale and limited demand can form a natural barrier to entry that can create a natural oligopoly. (2 points) The Coase theorem implies that we never need to worry about regulating c. negative externalities as long as we only assign property rights to the polluter. d. (2...
Pum a Am Om Diese Question Completion Status: QUESTION 14 Which of the following statements is...
Pum a Am Om Diese Question Completion Status: QUESTION 14 Which of the following statements is TRUE? 1. The EPA's tradable allowances program for sulfur dioxide establishes property rights to pollute and helps reduce transaction costs by distributing allowances, maintaining databases, and monitoring emissions. II. One criticism of tradable allowances is that they prohibit nonbusinesses and environmental groups from purchasing the allowances. III. The tradable allowances for sulfur dioxide have performed poorly because electricity output has increased, causing a rise...
Question 1 (10 pts) Consider the following market. Demand is given by Qp 5-P where Qp...
Question 1 (10 pts) Consider the following market. Demand is given by Qp 5-P where Qp is the quantity demand and p is the price. Supply is given by Qs - F where Qs is the quantity supplied. a. What is the market equilibrium quantity and price? b. Calculate consumer, producer, and total surplus. Depict your answer in a graph. c. Suppose the government imposes a price floor of P- 4. Calculate the consumer surplus, producer surplus, and deadweight loss....
Question Completion Status: QUESTION 5 Which of the following statements about combustion reactions is/are correct? 1....
Question Completion Status: QUESTION 5 Which of the following statements about combustion reactions is/are correct? 1. they are characterized by the reaction of a substance with oxygen ii. they form one or more oxygen-containing compounds, often including water iii. they emit heat a. only b. i, ii, 111 c. 11 and ili d. i and ili QUESTION 6
Question 14 (1 point) A 4% 10% B 5% 12% с 7% D 6% 11% 12%...
Question 14 (1 point) A 4% 10% B 5% 12% с 7% D 6% 11% 12% Expected Return Standard Deviation Which of the following statements is true? B is a better investment than C. Cis a better investment than D. B is a better investment than D. A is a better investment than B.
D Question 1 1 pts Consider the market for raspberries in Australia. Which of the following...
D Question 1 1 pts Consider the market for raspberries in Australia. Which of the following would most likely lead to a decrease in demand O A decrease in the price of gooseberries, a substitute for raspberries. An increase in the price of blueberries, a complement for raspberries A decrease in income if raspberries are an inferior good. O A severe frost that destroys most of the Tasmanian raspberry crop. Both a and b are correct. DI Question 2 1...
QUESTION 18 Which of the following statements is CORRECT? 1. An investor can eliminate virtually all...
QUESTION 18
Which of the following statements is CORRECT?
1.
An investor can eliminate virtually all diversifiable risk if
he or she holds a very large, well-diversified portfolio of
stocks.
2.
Once a portfolio has about 40 stocks, adding additional stocks
will not reduce its risk by even a small amount.
3.
It is impossible to have a situation where the market risk of
a single stock is less than that of a portfolio that includes the
stock.
4.
An...
Question 13. Which of the following statements about debt capital is correct? (a) [1 mark] An...
Question 13. Which of the following statements about debt capital is correct? (a) [1 mark] An unsecured creditor only has rights in contract, whereas a secured creditor has rights under the Corporations Act 2001 (Cth) An unsecured creditor only has rights under the Corporations Act, whereas a secured creditor has rights in contract A secured loan is one in respect of which the company has given special rights over its property to a creditor that can be used by a...
QUESTION 10 The regulatory approach for global waming that is the most efficient is by: price. subsidies. quantity taxing profits. QUESTION 11 One implication of the Coase Theorem (per class discussion) market failure is the primary cause of most externalities. "everyone is guilty and that at least some of the "blame for any of externality falls on all of the parties. a Pigouvian tax is usually the best approach to force internalization of externalities. the party that causes the externality...
Which of the following statements are true regarding externalities? (Check all thot apply.) OA. In the case of an extemality, the free market wil maximize social surplus. occurs when an economic activity has a spillover cost to a bystander. C. Deadweight loss can be either a foregone benefit or the total cost of the externality to society. D. For compuing efficient outcomes, economic agente adjust the demand curve to account for negative extenalities In the case of the negative extemality,the...
Question 1 True or false? (2 points) A positive externality does not lead to a deadweight loss because more of the a. good should be produced, not less. b. (2 points) Economies of scale and limited demand can form a natural barrier to entry that can create a natural oligopoly. (2 points) The Coase theorem implies that we never need to worry about regulating c. negative externalities as long as we only assign property rights to the polluter. d. (2...
Pum a Am Om Diese Question Completion Status: QUESTION 14 Which of the following statements is TRUE? 1. The EPA's tradable allowances program for sulfur dioxide establishes property rights to pollute and helps reduce transaction costs by distributing allowances, maintaining databases, and monitoring emissions. II. One criticism of tradable allowances is that they prohibit nonbusinesses and environmental groups from purchasing the allowances. III. The tradable allowances for sulfur dioxide have performed poorly because electricity output has increased, causing a rise...
Question 1 (10 pts) Consider the following market. Demand is given by Qp 5-P where Qp is the quantity demand and p is the price. Supply is given by Qs - F where Qs is the quantity supplied. a. What is the market equilibrium quantity and price? b. Calculate consumer, producer, and total surplus. Depict your answer in a graph. c. Suppose the government imposes a price floor of P- 4. Calculate the consumer surplus, producer surplus, and deadweight loss....
Question Completion Status: QUESTION 5 Which of the following statements about combustion reactions is/are correct? 1. they are characterized by the reaction of a substance with oxygen ii. they form one or more oxygen-containing compounds, often including water iii. they emit heat a. only b. i, ii, 111 c. 11 and ili d. i and ili QUESTION 6
Question 14 (1 point) A 4% 10% B 5% 12% с 7% D 6% 11% 12% Expected Return Standard Deviation Which of the following statements is true? B is a better investment than C. Cis a better investment than D. B is a better investment than D. A is a better investment than B.
D Question 1 1 pts Consider the market for raspberries in Australia. Which of the following would most likely lead to a decrease in demand O A decrease in the price of gooseberries, a substitute for raspberries. An increase in the price of blueberries, a complement for raspberries A decrease in income if raspberries are an inferior good. O A severe frost that destroys most of the Tasmanian raspberry crop. Both a and b are correct. DI Question 2 1...
QUESTION 18
Which of the following statements is CORRECT?
1.
An investor can eliminate virtually all diversifiable risk if
he or she holds a very large, well-diversified portfolio of
stocks.
2.
Once a portfolio has about 40 stocks, adding additional stocks
will not reduce its risk by even a small amount.
3.
It is impossible to have a situation where the market risk of
a single stock is less than that of a portfolio that includes the
stock.
4.
An...
Question 13. Which of the following statements about debt capital is correct? (a) [1 mark] An unsecured creditor only has rights in contract, whereas a secured creditor has rights under the Corporations Act 2001 (Cth) An unsecured creditor only has rights under the Corporations Act, whereas a secured creditor has rights in contract A secured loan is one in respect of which the company has given special rights over its property to a creditor that can be used by a...
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