The present value of $1 payable in two years is

Generating electricity creates air pollution. This industry, if left unregulated, will produce

A) more than the efficient level of output. B) the efficient level of output. C) less than the efficient level of output. D) sometimes more and sometimes less than the efficient level of output.

Suppose you have $400,000 saved up and purchase a medium-sized house for $200,000. Consider the following 2 scenarios:

i. The very next day, the prices of all houses, including the one you have just bought, double. ii. The very next day, the prices of all houses, including the one you bought, fall by half. Show that both scenarios increase your utility.