According to the Application, the average cost of abating one ton ...

[ereecah]

According to the Application, the average cost of abating one ton of CO2 emissions through the hybrid subsidy is 177, but a switch from coal to natural gas in power plants would reduce CO2 emissions at less than one-third the cost of the hybrid
 
  subsidy. The increase in cost associated with the reduction of one ton of CO2 emissions (assuming that each unit of CO2 emissions is measured in tons) describes the economic concept of
  A) marginal thinking. B) rational self interest.
  C) using assumptions to simplify. D) ceteris paribus.

Question 2

The existence of automatic stabilizers will
 
  A) cause the effects of shocks to aggregate demand to have a larger effect on GDP.
  B) reduce the recognition lag of discretionary fiscal policy.
  C) eliminate recessions.
  D) reduce the size of recessionary and inflationary gaps.

[heyhey123]

Answer to Question 1

A

Answer to Question 2

D

[ereecah]

TYSM

[miss.ashley]

Excellent