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MPE781 Economics For Managers

tag 0 Download 12 Pages / 2,953 Words tag 16-07-2021


1. Motivate the reader to read the article by summarising the key assumptions and main points.
2. According to Arrow. -We are much better to act to reduce CO, emer-sion substantially than to suffer and risk the consequencer of failing to meet this challenge." - in light of the article and based on your own retard). please explain why he suggests so. Specifically. what sources of market failure are present? Apply the abstract possible solutions to this problem of global warming.

3. In this ankle, the consumption discount rate, denoted by 6. is defined as d = p+gq. 1Vhat do the teens p and gq represent? Explain the intuition behind this equation. One critique says that any kind of uncertainly regarding g may lower the value of 6. Do you agree or disagree with the critique? What are the implications to the economy of having a lower value of 6. when human-imloced global warming is occurring? Explain. 

4. Adam Morton. in his article tided -Energy crisis: Wholeode power pikes have doubled since the carbon tax was axed" published In the Sydney Morning Herald (dated the 9th March. 2017). has argued that the dramatic Increase has been largely blamed on soaring gas pricer and investment uncertainty over what power plants to build as age-ing coal generators shut down. If so Own what are the implications regarding the value of 8 for Australia? Explain. 
5. In the equation t5 = p + gq. aurae that p is determined by an action of a social planner. Consider the event when U.S. Preddent Donald 'ump withdrew the U.S. from the Pali Climate Accord on June 1st. 2017. What are the Implications regaining the value ofd for the world? Explain. 
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