Please solve the following questions.

Part 2: Discussion Questions The ideal answer is 1/2 page long. 1. Use economic analysis to evaluate the following statement: The only amount of acceptable pollution is no pollution at all. 2. Are low discount rates good or bad for the environment? Discuss. 3. The marginal cost of CO2 emissions reduction differ substantially across Canadian provinces. Suppose that the Canadian federal government passes a policy that requires each Canadian province to reduce its CO2 emis- sions by 15% by 2020. Does this policy satisfy the equimarginal principle? Clearly motivate your answer. 4. Natural gas produced by fracking is a substitute for some goods, but also a complement for the other goods. Identify at least two goods that are sub- stitutes for natural gas and two that are complements. Considering both producers and consumers of those goods, analyze how they are either better off or worse off as a result of the spread fracking. 5. Logic matters. It leads us from simple ideas to surprising conclusions. A simple idea is that when the price of something goes down, suppliers pro- vide less of it. A surprising conclusion is that recycling programs, which re- duces price of timber, ensure that fewer trees are planted and forests shrink. Use two graphs, one for the market for timber and for recycling to explain and discuss this surprising conclusion. 6. Think about all of the interactions involved in your economics class. When you go to class, prep your homework, work on (group) assignment, study for and take midterm, do you action affect other people? Who? How? Do you take full account of their wishes? In other words: what are the externalities? Part 3: Analytical Problems 1. In 1995, the Food and Drug Administration (FDA) published new labeling standards for bottled water. Prior to that time, bottlers could sell regular tap water under a bottled water label. In fact, the FDA estimated that approx- imately 25 percent of the supply of bottled water was nothing more than ordinary tap water.Short Answer Questions Question 1: what is the difference between producer surplus and economic profits? Question 2: In a perfectly competitive market, firms earn zero economic profits in the long run. Explain why. Question 3: Explain why the marginal revenue curve of a monopolist lies below the market demand curve. Question 4: The two primary methods of regulating monopoly power are to a) increase competition or h) set the price equal to the competitive price. Explain in words why neither of these regulations are desirable if the monopoly is a natural monopoly. Question 5: Consider a monopolistic market in which a specific tax has been applied to the good. Explain in words what would happen to the consumer surplus, producer surplus, government revenue, and deadweight loss if regulators replaced the specific tax with an ad valorem tax (assume the two tax options lead to the same reduction in quantity). Question 1 \"COVID-l9 Impact on Economy\" Assume the economy of country A is in a long-run equilibrium with full employment. The nominal wage of workers are xed in the short run. a) Draw a graph which shows the short-run aggregate supply, long-run aggregate supply, 4'; aggregate demand. Describe the equilibrium point and show each of the following: -H- . 93'.- i) Equilibrium output, labelled Y1 ' ' ii) Equilibrium price level, labelled P1. b) Owing to the outbreak of C OVIDIQ, the export market of country A has decreased. On your graph in part a), describe in details on the effect of lower export on the equilibrium in the short run, labelling the new equilibrium output and price level Y2 and P2, respectively. c) Based on your result in part b), what is the impact of lower export on real wages in the short run? Explain. (1) Show, with a new graph, how the economy will return to its new equilibrium in the long run if the govennnent does not intervene. Explain. e) Suppose the government decides to increase expenditure on new equipment. (i) What component of aggregate demand will change? Explain. (ii) What is the impact on the long-run aggregate supply? Explain. (Remarks: From part a) to e), students 5110qu illustrate with diagrams, graphs, tables and graphics to support your arguments whenever appropriate.)