Section A Answer all questions in this section. 1. Explain why the use of static efficiency analyses is not appropriate in allocating resources between various time periods. [10p] 2. Explain why we need to employ discounting. Explain what determines the size of a discount rate. Furthermore, explain the consequences if the discount rate is zero. positive, or negative. [10p] 3. In your own words, outline how developed countries and developing countries should formulate their priorities and future strategies for forestation and forest management. [10p] 4. Discuss why some policies targeting fixed-source pollutants may be ineffective. whilst others may be inefficient. [10p]