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Unformatted text preview: ou are giving up 1 apple per 3 carrots
D) 3 apples, 1/3 carrot
and 3 carrots for every 1 apple
42. For an economist, the statement, "I value my friendship with Marc more than I value my
friendship with Don." simply means my WTA the loss of Marc as a friend is greater
than my WTA the loss of Don as a friend.
B) False Version 1 Page 9 43. Imagine the U.N. requires that total carbon dioxide emissions of China and the U.S. be
reduced by 100 units. 100 units of carbon dioxide emissions is a small percentage of
each country's current carbon dioxide emissions. Imagine that in the 100 unit range, the
cost, on the margin, of reducing carbon emission is always higher in the U.S. than in
China. This is likely to be the case because the U.S. tends to produce heat and energy
using methods that are less carbon intensive. Given all this, which of the following
statements is both most likely and most informative.
A) The cost-minimizing way to achieve the required reduction is for the reduction to
occur in the U.S. because production is more...
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This document was uploaded on 02/18/2014 for the course ECON 2010 at Colorado.
- Fall '07