Question 1
Relating to the
Economics in Practice on page 339: Europe has a carbon tax, and electricity producers are among the largest of the carbon producing firms. The carbon tax increases the costs of the electricity producers, which will shift the ________ curve in the electricity market to the ________.
◦ supply; right
◦ supply; left
◦ demand; right
◦ demand; left
Question 2
The field of ________ is concerned with externalities.
◦ environmental economics
◦ macroeconomics
◦ game theory
◦ econometric modeling