a) Is it true, as many people claim, that taxes assessed on producers are passed along to consumers? That is, do consumers pay for the entire tax? [10 marks] b) The demand function for milks is Qa = 50- 3P and supply function for milks is Qs = 10 +2P. Price elasticity of demand is - 0.4 and price elasticity of supply is 0.6. i . Calculate the prevailing price of milks in the market and quantity of milk demanded or supplied. [6 marks] ii. Calculate new price of milk in the market when government introduces a specific tax of N$0.50 per kg. [10 marks] iii. Calculate government tax revenue and indicate the percentage paid by consumer and the percentage paid by the producer. [10 marks]30. If paper waste, yard wastes, wood, and food wastes were removed from the solid waste stream, municipal solid waste production in the United States would be reduced by approximately: a. 10% b. 20% 40% d. 60% 31. Federal Environmental Protection Agency regulations on landfills requires that gases produced in a filled and sealed landfill must be vented. This regulation is aimed at preventing: a. methane explosions b. landfill stench c. acid gas emissions d. excess decomposition 32. The only plastics that are technically unsuitable for recycling are those composed of: a. plastics labeled 3 or higher b. pure single resin plastics c. combustible resin materials d. multiresin or laminated plastics 33. Disposable diapers have been the focus of attention by environmental activists in the past and some local governments have considered banning such products. Yet, banning disposable diapers will have little effect on landfill capacity because: a. disposable diapers can be recycled to make insulation b. these products make-up less than 2% of solid wastes c. disposable diapers rapidly decompose in a land fill d. these products can go into the existing sewage systems 34. An alternative to landfill disposal of yard wastes is composting in which: a. leaves and grass clipping decompose aerobically b. leaves and grass are buried in your backyard c. leaves and grass are dumped in the sewer d. none of the above 35. Although carbon dioxide is the most important of the greenhouse gases that is a product of human activity, another important greenhouse gas is: a. nitrogen gas b. sulfur dioxide c. methane d. argon gas 36. Complex global climate computer models are an important part of our attempt to understand whether current rates of carbon dioxide emission will cause global warming because: a. everyone trusts computers b. accurate models are predictive c. modeling is very fashionable d. when in doubt, make a guess 37. If global warming is occurring, the mean global temperature will increase and: a. rainfall patterns will change b. average sea level will rise c. weather will be more severe d. all of the above 5Consider the Solow growth model. Recall that upper-case variables denote aggregate variables and lower-case variables denote per worker (or per capita) variables. Capital is assumed to evolve according to the following equation: K= I+ (1-d)K. (1) where K' denoffes aggregate capital in the future period and A is capital in the current period. There is a closed-economy model without a government, so in a competitive equilibrium the income-expenditure identity is Y = C + 1. (a) Use the income-expenditure identity and equation (1) to find an expression for the evolution of per- worker capital. In other words, show that equation (1) can be re-written as follows: K_ saf(k) (1 - d)k (2) 1+n 1+n (b) Denote the steady-state level of capital per worker as ". Show that in the steady state, equation (2) implies the following equilibrium equation: sef ( k' ) = (n+ d)k. (3) For the rest of this question, suppose there are two countries with an aggregate production function Y = =KNOT. Further suppose the following values for the model's parameters: s = 0.25, d = 0.1 and n = 0.02 in both countries. (c) Suppose =4 = 1 in Country A. Use equation (3) and the given values for the model's parameters and production function to calculate the steady-state level of income per capita, y', and the steady-state level of capital per worker, ka, in Country A. (d) Suppose ag = 2 in Country B, but otherwise the countries are equivalent. Because 28 > 24, Country B will have a higher standard of living (i.e., per capital income) in the initial period. In the long run, will Country A ever converge with Country B in terms of per capita income? Explain your answer. (e) How is the Solow model inconsistent with the growth fact that there is no correlation between the level of output per capita in 1960 and the average growth rate in output per capita since that time?6 If there were a significant increase in the rates of open ocean photosynthesis and a significant increase large thick cumulus (white) clouds the effect on global climate would be: a. no change in climate b. increased global warming c. a global cooling effect d. none of the above 7. Measurements of the average atmospheric temperature during the past 600 thousand years have been based on: a. 01 /0* in ice gas bubbles b. fossils in marine sediments c. past sea level changes d. C14/C*2 in ice gas bubbles 8. Any environmental change that increased the global rates of primary production (photosynthesis) would also influence global climate change because: a. increases in primary production cause ozone depletion b. increases in primary production cause methane depletion c. increases in primary production decrease carbon fixation d. increases in primary production increase carbon fixation 9. Hydrogen could become a renewable energy resource if it is harvested by means of: a. water electrolysis using coal generated electricity b. reforming methane gas from hydraulic fracturing wells c. water electrolysis with wind or photovoltaic electricity d. any one of the above 10. The melting of the Arctic Ocean sea ice will have a synergistic effect on climate warming because: a. ice reflects solar energy better than open water b. sea ice melting will result in a sea level rise c. sea ice melting will open the Arctic to shipping d. none of the above 11. The global warming potential (GWP) of gases in the atmosphere is a function of their heat retention capacity and a. isotope ratio b. color and odor c. natural source d. atmospheric half-life 12. Inexpensive energy resources are sometimes cited as a barrier to the adoption of new more efficient technologies a. more efficient technologies may have a higher initial cost than existing technologies b. cheap energy makes efficiency improvements take longer to pay for themselves c. cheap energy makes efficiency seem unnecessary d. all of the above 13. Although unlikely to be implemented, a carbon tax on beef would be an appropriate effort to control global warming because: a. cattle farming yields more greenhouse gases than does other animal farming b. taxing beef would force people to think more seriously about global warming c. beef farming is very inefficient and requires constant inputs from fossil fuels d. all of the above 2