1. TRUE/FALSE questions about electricity markets

a. During off-peak hours, incentives to exercise market power diminish. (TRUE/FALSE)

b. In a competitive electricity market, higher natural gas prices do not lead to increased short-run profits for nuclear plants because every plant is a price taker. (TRUE/FALSE)

c. When capacity constraint is the main driver of scarcity prices in electricity markets, additional investment can alleviate the scarcity prices. (TRUE/FALSE)

d. Real-time pricing of electricity makes demand more elastic, which helps to alleviate scarcity prices. (TRUE/FALSE)

e. Establishing a wholesale electricity market will always lower the market's electricity prices because only the power plants with lower costs can survive competition. (TRUE/FALSE)

2. Banerjee, Gertler and Ghatak (2002) estimate the effect of the change in property rights brought by Operation Barga on agricultural productivity in West Bengal by a. Comparing the growth in productivity in districts in West Bengal where the program was implemented more intensely to districts in which the program was implemented less intensely 

b. Comparing the change in yield between districts in West Bengal with districts in Bangladesh 

c. Using both of the above approaches a. and b. 

d. Comparing the change in productivity after the reform to that before the reform

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