Homework Answers
ANS-22) RISK-FATALITY TRADE OFFS.
ANS-23) ALL OF THE ABOVE.
ANS-24) MARKET INTEREST RATES REFLECT THE DEMAND FOR ALL INVESTMENTS. Whereas, the social discount rate computes the value of funds spent on the social projects.
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OOO QUESTION 22 2 points What methods do economists use to put specific dollar values on lives lost? Benefit-cost a...
QUESTION 23 2 points Save Answer What economic metrics do economists use to measure climate change?...
QUESTION 23 2 points Save Answer What economic metrics do economists use to measure climate change? O Social Cost of Carbon O Present Value damages from climate change as a percent of GDP O Net losses in GDP from damages minus abatement O All of the above QUESTION 24 2 points 2 points Save Answer Save Answer The social discount rate is not the same as the market interest rate. Why? O capital markets adjust to all risks O market...
QUESTION 23 What economic metrics do economists use to measure climate change? Social Cost of Carbon...
QUESTION 23 What economic metrics do economists use to measure climate change? Social Cost of Carbon O Present Value damages from climate change as a percent of GDP O Net losses in GDP from damages minus abatement All of the above
QUESTION 4 What does the Social Cost of Carbon include? Only damages from climate change each...
QUESTION 4 What does the Social Cost of Carbon include? Only damages from climate change each year Only damages from climate change every year Future damages net of abatement Future damages plus abatement cost QUESTION 5 What does the Marginal Abatement Cost function show? How much it costs to abate an extra unit of carbon How much it costs to increase temperatures How much it costs to abate ll carbon emissions How much it costs to reduce climate change damages...
Question Completion Status: QUESTION 31 Why is abatement so important? Because it can offset damages Because...
Question Completion Status: QUESTION 31 Why is abatement so important? Because it can offset damages Because requires us to give up resources in the present Because it reduces the need to adapt All of the above QUESTION 32 Why do individual people discount the future? they think the future will be worse they think the future is worth more than the present they are impatient the present is uncertain QUESTION 33 What do inwestors discount the future? they think investments...
QUESTION 1 What will happen if we decrease our abatement of carbon over time? OEconomic damages...
QUESTION 1 What will happen if we decrease our abatement of carbon over time? OEconomic damages will decrease Economic damages will increase The optimal temperature goal will decrease Economic damages will be unchanged QUESTION 2 What does the Social Cost of Carbon tell us? Dollar value of damage per ton of carbon Dollar value of abatement per ton of carbon Amount paid by taxpayers to offset carbon emissions Amount paid by the government to encourage non-carbon energy sources QUESTION 3...
Question Completion Status: QUESTION 10 What is the elasticity of the marginal utility of consumption? OA...
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...
QUESTION 48 Approximately, what is the projected damage from climate change? 2% of GDP each year...
QUESTION 48 Approximately, what is the projected damage from climate change? 2% of GDP each year 10% of GDP each year GDP for one year total GDP in 2020 QUESTION 49 What is shadow pricing? Estimating prices for items (such as species loss) that cannot be easily priced A sitution where prices are rising When prices for amenities are inaccurate A situation where prices are falling QUESTION 50 Why might animals be affected more by climate change than humans are?...
2 points QUESTION 25 Which would you prefer? Option X: $200 in five years time if...
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...
2 points QUESTION 3 You are the bank's liquidity manager. What should you do if the...
2 points QUESTION 3 You are the bank's liquidity manager. What should you do if the liquidation cost of highly non-liquid assets increases and why? Answer this question by filling in the blanks. Please use the suitable word provided in the round brackets. The risk of illiquidity (increased/decreased/did not change) The cost of liquidity to (increased/decreased/did not change) Therefore it makes sense (increase/decrease/ maintain) the ESF buffer. As a result your bank will provide (more/less/the same) liquidity transformation for society...
Remaining Time: 38 minutes. 25 seconds. Question Completion Status: QUESTION 9 2 points Save Answer Which...
Remaining Time: 38 minutes. 25 seconds. Question Completion Status: QUESTION 9 2 points Save Answer Which of the following is true about ethics? A. It is the branch of philosophy that is the theory of right and wrong conduct. OB. It is universal O C. It is about the general principles of human behavior. OD. all of the above QUESTION 10 2 points Answer Which of the following is one of the ways people in groups we now know are...
QUESTION 23 2 points Save Answer What economic metrics do economists use to measure climate change? O Social Cost of Carbon O Present Value damages from climate change as a percent of GDP O Net losses in GDP from damages minus abatement O All of the above QUESTION 24 2 points 2 points Save Answer Save Answer The social discount rate is not the same as the market interest rate. Why? O capital markets adjust to all risks O market...
QUESTION 23 What economic metrics do economists use to measure climate change? Social Cost of Carbon O Present Value damages from climate change as a percent of GDP O Net losses in GDP from damages minus abatement All of the above
QUESTION 4 What does the Social Cost of Carbon include? Only damages from climate change each year Only damages from climate change every year Future damages net of abatement Future damages plus abatement cost QUESTION 5 What does the Marginal Abatement Cost function show? How much it costs to abate an extra unit of carbon How much it costs to increase temperatures How much it costs to abate ll carbon emissions How much it costs to reduce climate change damages...
Question Completion Status: QUESTION 31 Why is abatement so important? Because it can offset damages Because requires us to give up resources in the present Because it reduces the need to adapt All of the above QUESTION 32 Why do individual people discount the future? they think the future will be worse they think the future is worth more than the present they are impatient the present is uncertain QUESTION 33 What do inwestors discount the future? they think investments...
QUESTION 1 What will happen if we decrease our abatement of carbon over time? OEconomic damages will decrease Economic damages will increase The optimal temperature goal will decrease Economic damages will be unchanged QUESTION 2 What does the Social Cost of Carbon tell us? Dollar value of damage per ton of carbon Dollar value of abatement per ton of carbon Amount paid by taxpayers to offset carbon emissions Amount paid by the government to encourage non-carbon energy sources QUESTION 3...
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...
QUESTION 48 Approximately, what is the projected damage from climate change? 2% of GDP each year 10% of GDP each year GDP for one year total GDP in 2020 QUESTION 49 What is shadow pricing? Estimating prices for items (such as species loss) that cannot be easily priced A sitution where prices are rising When prices for amenities are inaccurate A situation where prices are falling QUESTION 50 Why might animals be affected more by climate change than humans are?...
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...
2 points QUESTION 3 You are the bank's liquidity manager. What should you do if the liquidation cost of highly non-liquid assets increases and why? Answer this question by filling in the blanks. Please use the suitable word provided in the round brackets. The risk of illiquidity (increased/decreased/did not change) The cost of liquidity to (increased/decreased/did not change) Therefore it makes sense (increase/decrease/ maintain) the ESF buffer. As a result your bank will provide (more/less/the same) liquidity transformation for society...
Remaining Time: 38 minutes. 25 seconds. Question Completion Status: QUESTION 9 2 points Save Answer Which of the following is true about ethics? A. It is the branch of philosophy that is the theory of right and wrong conduct. OB. It is universal O C. It is about the general principles of human behavior. OD. all of the above QUESTION 10 2 points Answer Which of the following is one of the ways people in groups we now know are...
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