34. Consider the market for home heating. Why is a carbon tax likely to be ineffective in reducing people's consumption of carbon-emitting substances, within this market? (A) The amount in government rebates does not equal the marginal rate of consumption of home heating fuels. (B) The issue is void since the Canadian government has already paused the tax on home heating, and the Saskatchewan government has paused it on natural gas. (C) People need home heating; it is a necessity of life. (D) Who cares? I love being taxed! 35. Which of the following is the best example of Berkson's paradox? (A) A doctor claims that foot disease causes heart attacks, after observing that hosptial patients with foot disease often have heart attacks. (B) After it rains, it is observed that seasonal allergies rise across the country. (C) A multi-millionaire claims that his trading platform will allow users to make mil- lions of dollars just like he did. (D) Tfw THIS EXAM IS AWFUL SMH. 36. Suppose that long-term bonds are trading at the same yield as short-duration bonds. What does this imply about the yield curve? (A) The yield curve is normal. (B) The yield curve is inverted. (C) The yield curve is vertical. (D) The yield curve is horizontal