According to a corporate customer, "hourly charging shifts economic incentives in the incorrect direction."  (a) What did the customer imply by this statement?  (b) Does the statement make sense?  (c) Will hourly billing inevitably cause incentives that are counterproductive?

Worse than useless Europe's Emissions trading Scheme (ETS) has too many carbon emission permits trading at too low a price. Source: The Economist, January 25, 2014 Under what conditions would the ETS, a cap-and-trade system, reduce carbon emissions to the efficient quantity. Use a graph to illustrate your explanation. Also, show the outcome of issuing too many permits. The efficient quantity of emissions would be produced if the quantity of permits was set such that_ price O A. carbon emissions were eliminated; equal to marginal benefit OB. marginal private cost of electricity equals marginal benefit; above marginal external cost OC. marginal private cost of electricity equals marginal benefit; equal marginal external cost OD. marginal social cost of electricity equals marginal benefit; equal to marginal external cost OE. marginal social cost of electricity equals marginal benefit; below marginal external cost The graph shows the market for electricity production in the European Union…

An economist estimates the value of a nature preserve by calculating the price premium people pay for houses located adjacent to the preserve.  This is an example of what type of economic valuation?   a.   Hedonic pricing   b.   Replacement cost methods   c.   Contingent valuation   d.   Travel cost models   e.   Defensive expenditures

13) Suppose a certain change will generate £5,000 of benefits and £3,000 of costs.This change can best be described as(a) a potential Pareto improvement.(b) inefficient.(c) Pareto efficient.(d) equitable.