ECON 2010 FINAL

S will cost the least in terms of the worlds scare

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Unformatted text preview: efficient in the U.S. than in China. B) Reducing carbon dioxide emission by 100 units in China (zero units in the U.S.) will cost the least in terms of the world's scare resources because, in the relevant range, the marginal cost of abatement is always lower in China. C) The cost-minimizing way to achieve the required reduction is for some of the reduction to occur in the U.S. and for some of it to occur in China. D) Efficiency requires that the 100 unit reduction be achieved by reducing emissions by 100 units in China and zero units in the U.S because China now produces more carbon dioxide emissions than does the U.S. reducing emission there will have a lower cost the amount 44. Ingrid, when she is in Sweden, and not skiing for CU, consumes only pickled herring and Aquavit (a Swedish type of booze). She is indifferent to the amount of pickled of herring herring she eats, but the more the better for Aquavit. Consider her indifference curves doesnt not with Aquavit on the vertical axis and herring on the horizontal axis give her A) Ingrid's indifference curves are vertical lines B) Ingrid's indifference curves are downward sloping utility so the aqua C) Ingrid's indifference curves are upward sloping only...
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