SULOTION If the pure rate of time preference is 1%, the elasticity of the marginal utility of consumption is 2, and eco...

Question

Question

SULOTION If the pure rate of time preference is 1%, the elasticity of the marginal utility of consumption is 2, and economic

Answer 1

Answer #1

Answer-27 The correct option is D.) 9%

Social discount rate = pure rate of time preference + elasticity of marginal utility of consumption * growth rate = 1% + 2 * 4% = 1% + 8% = 9%.

Answer-28 The correct option is A.) Yes, they reflect preferences for investment now versus investment later.

In the context of long-term environmental change, capital markets are perfect as they reflect preferences for investment now versus investment later.

Answer 2

Similar Homework Help Questions

QUESTION 28 In the context of long-term environmental change, are capital markets perfect? Yes, they reflect preference...

QUESTION 28 In the context of long-term environmental change, are capital markets perfect? Yes, they reflect preferences for investment now versus investment later Yes, they are based on many persons decisions about savings and investment O No, interest rates in capital markets are lower than individual interest rates O No, capital markets do not reflect the preferences of future generations
If the pure rate of time preference is 1%, the elasticity of the marginal utility of...

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%
QUESTION 28 In the context of long-term environmental change, are capital markets perfect? Yes, they reflect...

QUESTION 28 In the context of long-term environmental change, are capital markets perfect? Yes, they reflect preferences for investment now versus investment later Yes, they are based on many persons decisions about savings and investment No, interest rates in capital markets are lower than individual interest rates No, capital markets do not reflect the preferences of future generations QUESTION 29 What changes to health status might be expected with climate change? More heat-related diseases Fewer QALYS New epidemics All of...

QUESTION 27 If the pure rate of time preference is 1%, the elasticity of the marginal...

QUESTION 27 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% o 2% O O
QUESTION 19 What is the pure rate of time preference? O The value placed on consumption...

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
QUESTION 10 What is the elasticity of the marginal utility of consumption? O A measure of...

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 24 The social discount rate is not the same as the market interest rate. Why?...

QUESTION 24 The social discount rate is not the same as the market interest rate. Why? O capital markets adjust to all risks o market interest rates reflect the demand for all investments O capital markets are not perfect capital markets are uncertain
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...
Completion Status QUESTION 19 What is the pure rate of time preference? The value placed on...

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 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...