27. Bamboo is a grass with many uses, including being made into cloth and wooden flooring. It takes about three years to become mature enough to use after it is planted. A forest of evergreen may take 10-15 years or longer to mature. Both evergreens and bamboo have similar uses, but hardwood is considered to be the higher-quality wood. Assume that you have land where you can grow both bamboo and evergreens. You are more likely to grow bamboo when and more likely to grow evergreens when a. Interest rates are low, interest rates are high. b. Interest rates are low, interest rates are low. c. Interest rates are high, interest rates are high. d. Interest rates are high and interest rates are low.

27. Bamboo is a grass with many uses, including being made into cloth and wooden flooring. It takes about three years to become mature enough to use after it is planted. A forest of evergreen may take 10-15 years or longer to mature. Both evergreens and bamboo have similar uses, but hardwood is considered to be the higher-quality wood. Assume that you have land where you can grow both bamboo and evergreens. You are more likely to grow bamboo when and more likely to grow evergreens when a. Interest rates are low, interest rates are high. b. Interest rates are low, interest rates are low. c. Interest rates are high, interest rates are high. d. Interest rates are high and interest rates are low.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 3SCQ: The Gizmo Company is planning to develop new household gadgets. Table 13.4 shows the companys demand...

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The Gizmo Company is planning to develop new household gadgets. Table 13.4 shows the companys demand for financial capital for research and development of these gadgets, based on expected rates of return from sales. Now, say that every investment would have an additional 5 social benefitâ€”that is, an investment that pays at least a 6 return to the Gizmo Company will pay at least an 11 return for society as a whole; an investment that pays at least 7 for the Gizmo Company will pay at least 12 for society as a whole, and so on. Answer the questions that follow based on this information. If the going interest rate is 9, how much will Gizmo invest in R. How much will the firm invest if it also receives the social benefits of its investment? (Add an additional 5 return on all levels of investment.)
Why might private markets tend to provide too few incentives for the development of new technology?
1. Kim owns a Porsche and a Toyota. The Porsche has a fuel economy of 15 miles per gallon (mpg) and she plans to drive it 3,000 miles this year. The Toyota gets 30 miles per gallon and she plans to drive it 15,000 miles this year. Suppose Kim can install a device that improves the fuel economy of any vehicle by 5 miles per gallon. However, she only has one of the devices. Which vehicle should she install it on if her goal is to minimize fuel consumption this year? Assume that the device does not hamper vehicle performance in any way.
1.Does economic efficiency guarantee sustainability? Why or why not?
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#12 ch. 13 Can you explain what the correct one is and why? Can you also explain why the other ones are incorrect?
57. A family on a trip budgets $800 for restaurant meals and fast food. The price of a fast-food meal is $20 and the family can afford 16 restaurant meals if they don't buy any fast food. How many fast-food meals would the family gain if they gave up one restaurant meal? a. 1 b. 0.4 c. 2 d. 2.5 e. 5
1. Imagine that you are faced with the following three public projects, each of which costs $3000. Please assume that this cost is applied to the project at Year 0 for all three cases. Which option would you decide to build? Please assume that the discount rate is 12 percent, and that benefits start in Year 1. Make sure that you explain why you would choose the option that you select. a. A parking structure that yields $1050 of benefits per year for 10 years b. A landfill that yields $800 of benefits per year for 6 years c. A new wastewater treatment plant that would yield $600 benefit per year forever 2. Would your answer to Problem 2 change if the discount rate were 5 percent? In this case, which of the three options would you choose and why? Construct your solutions to these questions in an Excel file with seven tabs. One tab for your verbal answers to questions 1 and 2 above, and six tabs for the calculations (a separate tab for each of the three problems…
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11 When performing a benefit cost analysis of different options to provide clean water to a community, the option that should be chosen is the option that maximizes the benefit to cost ratio. True or False?
2. You are preparing to market this year's calf crop and want to decide if you would like to precondition your calves this year. If you decided to sell your calves at weaning, you would expect to market them at approximately 425 at price of $1.80 per pound. Alternatively, you have the option to precondition your calves for 45 days in a dry lot, castrate your bulls, and provide a round of vaccinations. You expect that the additional 45 days of feeding will get your calves up to a market weight of 550 pounds. Under normal circumstances, these calves would bring $1.65 per pound at the sale barn, but you also expect that you can charge a 6% preconditioning premium at the time of sale because you are marketing them directly. a. What is the final sale price for the 550 pound preconditioned calves? b. What is the value of gain for the preconditioned calves? c. If your cost of gain over the 45-day preconditioning period is $1.45 what would be your net profit on these calves?
so.7