1. Under a perfectly competitive market, environmental resources may not be allocated efficiently due to the presence of: (a) Externalities (b) Information imperfection (c) Presence of transaction costs (d) Well-defined property rights 2. Social discount rate determination is influenced by the following considerations: (a) future economic growth (b) opportunity cost of capital (c) preference for consumption today (d) past carbon emission 3. In the short run when some costs are fixed, producer's surplus in most natural resource industries will be equal to: (a) profits plus fixed cost (b) consumer surplus minus scarcity rent (c) zero (d) negative