Exam 2 – Potential Exam Questions
Exam 2 will be based only on the questions listed below.
Vicious Cycle:
1 Extreme inequality of wealth
2 corrupt government institutions that
limit political and economic
participation to the elites
3 This worsens income distribution (then go back to 1)
Immigration
The application of tariffs to the Chinese imports will not improve the U.S’s trade deficit because in the short run, it is difficult for the domestic firms of the United States to match the low prices of Chinese imports. This will also increase domestic production to satisfy the domestic producers using Chinese imports as intermediate good and domestic consumers using Chines imports as final good. Thus, the application of tariffs will not reduce trade deficit, it might rather increase trade deficit of the United States because of increase in the prices of imports.
1.CO2 emission have no short-term damaging effects at ground level.
Often not even restricted by local governments or nations.
2.The effects accumulate in the atmosphere and are born by nonparticipants elsewhere in the globe or in a different generation.
Discount rates help in measuring the present value of something that may happen in future. In real life the carbon that is emitted in the present days will have it’s effect on the environment over the next 50 or 70 years but we cannot measure the future effect in the present days.
So this discount rate was developed to frame policies that will help us sacrifice something today to get the benefit over the next coming years. To measure the effects of climate change and how it can be avoided we need to bring in the discount rate to measure it’s effect today so that it can be effectively controlled by making such appropriate policies.
Changes in the climate or environment affects the US agriculture in numerous ways. Climate change results in rise or fall in temperature, light or heavy rainfall, Presence of more pests in the atmosphere and also leading to lessening the properties of soil etc. All this could lead to poor yields and thus it may eventually lead to food shortages.
Any crop requires a particular amount of water and temperature to grow but if due to climate change such factors are not present then the crop will not grow as it was supposed to grow. Thus, climate change does have a large impact on the agriculture of US. And it certain measures are not taken to control the climate change then it could lead to permanent damage of crops in that particular area as there would be no such environment present for the crops to grow.