Question

In: Economics

If the supply of emissions permits decreases a.the price of permits will fall b.firms will increase...

If the supply of emissions permits decreases

a.the price of permits will fall

b.firms will increase emissions

c.the price of permits will rise

d.more firms will want to buy permits

Emission permits are initially allocated

a.by auction

b.equally across all firms

c.based on current emissions

d.there is no standard way that permits are allocated

The total allowable emissions under a tradable pollution permit system can be reduced

a.by allowing offsets

b.by allowing entities to buy a permit and retire it

c.by allocating more permits as firms grow

d.it can never by reduced

Transfer coefficients

a.define how emissions translate to damages when there are nonuniform emissions

b.define how emissions translate to costs of abatement when emissions are nonuniform

c.are used to adjust for trades across zones with differential marginal emissions damages

d.both the first and third answers

For tradeable pollution permit markets to work well,

a.there must be enough buyers and sellers to support competition

b.there must be effective monitoring

c.both of the above

d.neither of the above

Monitoring of polluters under an emissions trading system is more difficult and costly than with emissions charges.

a.True

b.False

Which of the following is true?

a.Cap-and-trade is a quantity based system.

b.Cap-and-trade is a price based system.

c.A program of emissions charges is a price based system.

d.Both the first and third answers are true.

Expert Solution

Ques 1 ) c.the price of permits will rise

Given the demand remaining constant, reduction in supply will increase the prices.

Ques 2) c.based on current emissions

The permits are based on the level of emissions of the company.

Ques 3 ) b.by allowing entities to buy a permit and retire it

Instead of offsetting, purchasing and retiring it is a feasible option.

Ques 4 ) d.both the first and third answers

Transfer coefficients help in both predicting pollutant emission rate and thus allow emissions translate to damages when there are nonuniform emissions. And also are used to adjust for trades across zones with differential marginal emissions damages.

Ques 5 ) c.both of the above

The market to work all 3 are important, buyers, sellers and effective monitoring.

Ques 6 ) a.True

Monitoring all the parties is more time consuming and costly overall.

Ques 7 ) d.Both the first and third answers are true.

Cap-and-trade is a quantity based system. The authorities set the quantity emitted

And program of emissions charges is a price based system. The authorities set the emission charges.

Rahul Sunny answered 2 years ago

1. When the Federal Reserve decreases the required reserve ratio, A.The money supply will increase. B.The...

1. When the Federal Reserve decreases the required reserve ratio, A.The money supply will increase. B.The money supply will decrease. C.There is no effect on the money supply. D.Not enough information is given. 2. The United States is divided into ___ Federal Reserve Districts. The Federal Reserve Bank's Board of Governors consists of ___ members appointed by the president of the U.S. to 14-year, non-renewable terms. One of the board members is appointed to a ___ year, renewable term as...

An increase in supply means that: a.the supply curve has shifted leftward. b.there is an upward...

An increase in supply means that: a.the supply curve has shifted leftward. b.there is an upward movement along the supply curve. c.producers are willing to sell more at each price. d.there is a downward movement along the supply curve. An increase in the equilibrium price and quantity in a market occurs when there is a: a.rightward shift of the demand curve, given an upward-sloping supply curve. b.leftward shift of the demand curve, given an upward-sloping supply curve. c.rightward shift of...

“As more people buy computers, the demand for Internet service increases and the price of Internet service decreases. The fall in the price of Internet service decreases the supply of Internet service.” Is this statement true or false?

3.a) “As more people buy computers, the demand for Internet service increases and the price of Internet service decreases. The fall in the price of Internet service decreases the supply of Internet service.” Is this statement true or false? Explain.3.b) What is the effect on the equilibrium in the maple juice market if maple juice becomes less popular and a more expensive robot is used to pick maple fruits? Explain with words + graph

Mitigation methods to address CO2 emissions include both emissions fees (taxes) and tradable emissions permits (Cap...

Mitigation methods to address CO2 emissions include both emissions fees (taxes) and tradable emissions permits (Cap and Trade). Describe specific circumstances (A) in which fees would be more cost effective in achieving a target, and (B) circumstances in which tradable permits would likely outperform fees.

The price level will increase while real GDP decreases when:

The price level will increase while real GDP decreases when: aggregate demand decreases/shifts to the left short-run aggregate supply decreases/shifts to the left short-run aggregate supply increases/shifts to the right aggregate demand increases/shifts to the right

l. Following an increase in money supply, if the interest rates fall immediately and then eventually...

l. Following an increase in money supply, if the interest rates fall immediately and then eventually rise higher than the original level, then : a. The liquidity effect is weaker than the income and price level effect and there is fast adjustrnent b. The liquidity effect is stronger than the income and price level effect c. The liquidity effect is weaker than the income and price level effect and there is slow adjustment d. The liquidity effect is stronger than...

suppose the fed decreases the discount rate and buys bonds sufficient to increase the money supply...

suppose the fed decreases the discount rate and buys bonds sufficient to increase the money supply by $200 billion. what impact will this have on the interest rate, investment spending, real gdp, and the price level? would that be a good idea in today's economic environment? why or why not? draw graphs to illustrate your points, and describe them and the points thereon thoroughly.

1 unit increase in price in a market decreases the demand amount by 1 unit and...

1 unit increase in price in a market decreases the demand amount by 1 unit and increases supply amount by 3 units. The autonomous demand is 48 units. While the price is zero, the average supply is -4 units. a) Calculate the values of the balance points. b) In this market, 2 unit tax has been applied for each unit of the firm sold. Calculate the values of new balance points after tax.

An increase in the number of tomato producers will a. increase market supply because the price...

An increase in the number of tomato producers will a. increase market supply because the price of tomatoes will rise b. increase market demand but leave market supply unchanged c. increase market supply because market demand will increase as more tomatoes are produced d. increase market supply because the market supply is the sum of all the individual tomato producers supply curves d. increase market supply because the market supply is the sum of all the individual tomato producers supply...

When an increase in price of one commodity decreases the demand for another commodity (negative cross...

When an increase in price of one commodity decreases the demand for another commodity (negative cross price effect), then two commodities are substitute goods True False When the increase in price of one commodity decreases the demand for another commodity (negative cross price effect), then the two commodities are said to be complementary goods True False An increase in income of consumers will result in an increase in demand of a commodity only if, it is considered as a superior...