Environmental economics multiple choice and true and false

  

Environmental Economics

TRUE OR FALSE - EXPLAIN 

The call-for for oil in Alaska is ardent by 8−0.4q time the accoutre is 2. If Alaska has 20 barrels of oil for two years and the attention blame is 10%, it is ameliorebuke for Alaska to quote 5 barrels in year one and 15 barrels in year two than to quote 15 barrels in year one and 5 barrels in year two. Alaska follows the Hotelling empire in their conclusion to quote oil. In 2017, the ultimate quoteion absorb of oil was $2 and the expense of oil was $2.70. In 2018, the ultimate quoteion absorb was $2.2 time the expense was $3. What was the attention blame in Alaska?

MULTIPLE CHOICE 

1. Introduce is the deep formation input for the beer brewing companies in Milwaukee and hence, their avail heavily await on the expense of introduce. The ultimate absorb of all brewing companies is 300 + 0.8Q where Q is gallons of introduce. Notice, eventually, that 0.4Q of that absorb comes from the introduce embedded in wheat, which is also used for beer formation. Brewing companies use wheat effected in Kansas in the formation of beer. Finally, the ultimate good is 1200 − 1.4Q where Q is gallons of introduce. Consider that brewing companies are the simply consumers of introduce in Milwaukee and that Milwaukee Introduce Works provides introduce for beer formation. What is the communicate expense of introduce in Milwaukee? 

(a) 500 

(b) 409 

(c) 627 

(d) none of the overhead.

2. Suppose the call-for for oil in Alaska is ardent by 8 −0.4q time the accoutre is 2. Alaska simply consumes its oil and the supply of oil is correspondent to 20 barrels for two years. If the attention blame is 10%, the empire of Alaska earn quote:

(a) X1 = 5 barrels in year one and X2 = 15 barrels in year two.

(b) X1 = 15 barrels in year one and X2 = 5 barrels in year two.

(c) X1 = 12.039 barrels in year one and X2 = 7.961 barrels in year two.

(d) X1 = 11.278 barrels in year one and X2 = 8.722 barrels in year two. 

(e) None of the overhead.

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