Even though it is generally true that the more goods and services ...

[dbose]

Even though it is generally true that the more goods and services people have, the better off they are, GDP provides only a rough measure of well-being.
 
  Assuming language is not an issue, what other factors besides GDP might you consider when deciding where to live and work?

Question 2

How can technology help mitigate the effects of climate change?
 
  What will be an ideal response?

Question 3

Determine if the following statements pertain to optimization by levels or optimization by differences.
 
  a. John is attempting to decide on a movie. He determines that the newest Batman movie provides him with 10 more of a benefit than the newest Spiderman movie. He adds to his net benefit by always buying a large popcorn and a large drink.
  b. Marcia finds that the net benefit of flying from Chicago to Honolulu on a non-stop United Airlines flight is 400, and the net benefit for the same trip flying on a one-stop American Airlines flight is 200 .
  c. Nikki decided to take the first available parking space as she entered the student lot. She felt that the first available space had a 5 premium on all other possible spaces since she did not want to risk being late for her exam.
  d. Reagan determined that the net benefit of taking the combination of two online courses and traditional lecture course was 100 . The same three courses online gave her a net benefit of 80; and all three in a lecture-based format gave her a net benefit of 10 .

[kmb352]

Answer to Question 1

Factors not included in GDP which you might consider include the value of leisure, levels of pollution, crime levels, and other social problems. All of these factors are not included in GDP measurements, yet may be very important in making a decision concerning your well-being.

Answer to Question 2

Although the discussion on reducing atmospheric carbon concentration needs to focus on whether taxes, direct regulation, or cap-and-trade schemes should be used, technological change in the energy sector is likely to be the most central pillar of the economics of climate change. Shifting to clean energy requires the development of technology and the implementation of alreadydiscovered but not yet commercialized technologies. With technological progress, reductions in carbon emissions that would not have been cost effective with our given state of technology could become feasible. Furthermore, we may not need to rely as much on a carbon tax or cap-and-trade provided that the development of new environmentallyfrie ndly technologies can be encouraged.
A-head: ECONOMICS OF CLIMATE CHANGE
Concept: Technology and Climate Change

Answer to Question 3

a. This is an example of optimization by differences since John is stating that the Batman movie provides 10 more in value than the Spiderman movie. Buying a large popcorn and a large drink has no impact on his decision since the net benefit of the popcorn and drink would be added to that of each movie; so the decision on which movie to attend would not be impacted.
b. This is an example of optimization by levels. Marcia has a higher net benefit from flying non-stop.
c. This is an example of optimization by differences. Nikki states that the first parking space gives her 5 greater net value than any other space.
d. Reagan has evaluated her choices of class schedules using the total net benefit from each combination. Therefore, this is optimization by levels.