4   Time remaining: 00:09:27 Economics Hurdle rates (minimum required rates of return) are often used by development banks such as the World Bank. Suppose the World Bank hurdle rate is 3%. The World bank is currently evaluating a carbon investment in Brazil that will require 1.35 million dollars given to Brazil now, in return for Brazil setting aside forest land and then returning 2.0 million dollars back to a carbon credit owned by the bank in 10 years. The world bank has already paid 1 million dollars in the past two years to set up a carbon payment fund that can generally be used for these purposes. Will the following investment in this carbon market make sense for the World Bank? A. No because the rate of return is equal to 2.4% B. No, because the opportunity cost of waiting is too high C. Yes, because the ratio of benefits to costs is greater than 3% D. Yes, because the rate of return is equal to 4.0%

Is the government responsible for preserving essential infrastructure if it is owned and maintained by the private sector? What is your reasoning?

What are the factors which can be indentified for increasing interest in the problem of the ecomomic development?

Assume the relationship between the growth of a fish population and the population size can be represented as g= 8S – 0.2S2, where g is the growth in tons and S is the size of the population (in thousands of tons) a. Given a price of $100 a ton of fish, what is the marginal benefit of smaller population sizes? b. Estimate the population size that is compatible with the maximum sustainable yield. What would be the size of the annual catch if the population were to be sustained at this level? c. If the marginal cost of additional catches (represented in terms of the population size) is MC= 3(120-S), what is the population size that is compatible with the efficient sustainable yield? d. Is there a difference between the maximum sustainable yield you calculated in part (b) and the efficient sustainable yield in part (c)? Why or why not? Explain briefly (in 1 paragraph or less)

(b) Assume the economy is at steady - steady until the rate of depreciation suddenly experiences a permanent increase at 1. Use the following parameter values: A = 1, x = 0.5L 1,s = 0.2 where s is the saving rate and > is the depreciation rate, and complete the following table (show your working for row 2 only): Round to two decimal places. You may, though are not required to, use Excel or similar for this task. Also pls help me Comment on how persuasive the results of part (b) are. (b) Assume the economy is at steady-steady until the rate of depreciation suddenly experiences a permanent increase at t = 1. Use the following parameter values: A = 1 L= 1 a = 0.5 8 = 0.2 8 = (0.10 t<1 (0.15 t≥1 where s is the saving rate and 8 is the depreciation rate, and complete the following table (show your working for row 2 only): Period (t) Capital Stock (K) Output (Y) Saving (St) Investment (I) 1 Consumption (C₁) (This row will be your steady state values from part a). 2 3 4 9 10 Round to two…

Explain, using a diagram, the optimal extraction across time periods of a depletable resource such as offshore oil assuming constant marginal extraction costs and the availability of a renewable substitute such as offshore wind. What determines the switch point from depletable to renewable resource?