Exam simulation 1 20182019

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1 ENERGY ECONOMICS: EXAM SIMULATION Academic Year: 2018/2019 Professors: Bianchini, Butticè RULES Duration: 2 hours During the test students are not allowed to use class notes or textbooks or to leave the classroom Mark the exam folder with your Name, Last Name and Id Number (or Matricola). At the end of the test hand over only the exam folder NAME LAST NAME ID NUMBER Instructions Read the questions carefully and provide answers to all the points raised in each question. Remember to define all variables and parameters used in your answers. 2 Question 1 - Multiple Choice questions (9 points) The load duration curve (1 point): 1. Combines information about demand and supply 2. Provide a graphical representation of the length of time that demand exceeds a given load 3. Represents the total hours during the year the supply was above a given value 4. Is an economic representation of the relationship between power generation and its costs The reservation price (1 point): 1. Is the highest price that a given person will accept and still purchase the good 2. Is the lowest price that a given producer will accept and still sell the good 3. Is the highest price that a given producer will accept and still sell the good 4. Is the lowest price that a given person will accept and still purchase the good In a pure competitive market (1 point): 1. Firms are price takers 2. Only few very large firms operate 3. The quantity produced is always the lower than in a monopoly 4. The deadweight loss can be overcome through regulatory intervention In a PPV scenario, the social welfare (1 point): 1. Is the maximum possible 2. Can be always increased through the introduction of green technologies 3. If reduction costs A(x) are sufficiently low, can be increased through the introduction of a green…