With respect to events like global warming, some economists suggest using falling discount rates because
A) exponential discounting virtually gives no weight to (large) costs incurred far into the future.
B) exponential discounting weights (large) costs incurred far into the future heavily.
C) events far in the future do not affect us.
D) we should not care about costs far in the future.
A
You might also like to view...
If a country experiences a real GDP growth rate of 1 percent and population growth of 2 percent, then the growth rate of real GDP per person is
A) 3 percent. B) 2 percent. C) 1 percent. D) -1 percent. E) 0 percent.
When what people pay does not necessarily reflect the real value they put on a good, it is likely that the:
A. free rider problem exists. B. good will be oversupplied. C. good is easily excludable. D. good is nonrivalrous.
A profit-maximizing monopolist will produce the level of output at which
a. average revenue is equal to average total cost. b. average revenue is equal to marginal cost. c. marginal revenue is equal to marginal cost. d. total revenue is equal to opportunity cost.
Which of the following examples would most likely be the least elastic?
a. hockey sticks b. tennis racquets c. sports equipment d. baseball bats