Air pollution in the country of Gawanza has grown over the last ten years with an increase in manufacturing industries. The government of Gawanza now has a plan to reduce the CO2 emissions into the air by 10% per year over the next 10 years. What do you expect will happen? Group of answer choices The cost and benefits to Gawanza will be lowest in the last few years of implementing this plan. The cost and benefits to Gawanza will be highest in the last few years of implementing this plan. The cost will be the highest and benefits the lowest in year ten.

Technological innovations shift the production possibility curve. Look at graph you sketched for Exercise 12.13 Which types of technologies should a country promote? Should clean technologies be promoted over other technologies? Why or why not?

Investors sometimes fear that a high-risk investment is especially likely to have low returns. Is this fear true? Does a high risk mean the return must be low?

Becky and Sarah are sisters 1who share a room. Their room can easily get messy, and their parents am always telling them to tidy it. Here are the costs and benefits to both Becky and Sarah, of taking the time to clean their room: If both Becky and Sarah clean, they each spends two hours and get a clean room. If Becky decides not to clean and Sarah does all the cleaning, then Sarah spends 10 hours cleaning (Becky spends 0) but Sarah is exhausted. The same would occur for Becky if Sarah decided not to clean—Becky spends 10 hours and becomes exhausted. If both girls decide not to clean, they both have a dirty room. What is the best outcome for Becky and Sarah? What is the worst outcome? (It would help you to construct a prisoners dilemma table.) Unfortunately, we know that the optimal outcome will most liker not happen, and that the sisters probably will choose the worst one instead. Explain what it is about Beckys and Sarahs reasoning that will lead them both to choose the worst outcome.

What can government do to encourage the development of new technology?

Plot the logarithm of arrivals for each transportation mode against time, all on the same graph. Which now appears to be growing the fastest?

What is deflation?

In what ways (it) company investments in research and development create positive externalities?

What is a production technology?

What is an example of a problem in the world today, not mentioned in the chapter, that has an economic dimension?