PM= PA+PB = Set gaga because of open access and indivisibility (i..e., no rival in consumption) which are the characteristics of public goods.
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- 1. Please explain what is meant by externality, then give an example of an externality casepositive and negative2. Explain the way or form of government intervention to solve the problem negative externality1. How did Covid-19 affect businesses and the overall economy? 2. Governments and pharmaceutical companies rushed quickly ahead to develop a vaccine. Vaccinations and immunizations are examples of positive externalities. A positive externality is when an activity creates a benefit for those who are not involved in the transaction, a third party. Let’s examine the vaccination of Covid-19 as a positive externality. Question: Why is the Covid-19 vaccination considered a positive externality? 3. Market supply curve S and private demand curve Dp represent the market for vaccinations. Equilibrium is at point e, and the number of people getting the vaccination is Qe. Society would benefit, however, if more people would get the vaccination. Demand curve DS represents the marginal social benefit (MSB), which includes the private demand for vaccinations plus the external benefits that flow from it. Socially optimal enrollment would be Q1 (point f). Society would benefit the most by…According to the Coase theorem,a. private actors can reach agreement to solve theproblem of externalities without the government.b. corrective subsidies are the best policy to solvethe problem of positive externalities.c. negative externalities are a problem for societybut positive externalities are not.d. when two private actors amicably solve theproblem of externalities, they shift the problem toa third party
- Radio stations, tornado sirens, light houses, and street lights are all public goods in that all are nonrivalrous and nonexclusionary. Therefore why does the government provide tornado sirens, street lights and light houses but not radio stations (other than PBS stations)?Fredo loves watching Downton Abbey on his localpublic TV station, but he never sends any money tosupport the station during its fund-raising drives.a. What name do economists have for people likeFredo?b. How can the government solve the problemcaused by people like Fredo?c. Can you think of ways the private market cansolve this problem? How does the option of cableTV alter the situation?a. How much does consumers surplus rise when the government completely subsidizes bike trips? B. How much do external benefits increase when the government completely subsidized bike trip? C. Do Social benefits outweigh the social costs of this subsidv? By how much
- Give typing answer with explanation and conclusion Which of the following policies could help the government achieve the efficient outcome? Check all that apply. Implement tradable pollution permits Offer a subsidy equal to the price at the efficient outcome Offer a subsidy to consumers equal to the vertical distance between the marginal private benefit curve and the marginal social benefit curve Offer a subsidy to producers equal to the vertical distance between the marginal private benefit curve and marginal social benefit curve Introduce emission taxes38. Negative externalities are also called a. positive externalities. b. external benefits. c. external costs. d. all of the above. e.. none of the above. 39 Which of the following is a way governments have tried to deal with negative externalities? a. Governments can impose pollution taxes or green taxes. b. Governments can require specific pollution reduction technologies be used. c. Governments can use a cap and trade system with marketable emissions rights. d. all of the above. e. none of the above.Two towns, each with three residents, are decidingwhether to put on a fireworks display to celebrate theNew Year. Fireworks cost $360. In each town, somepeople enjoy fireworks more than others.a. In the town of Bayport, each of the residentsvalues the public good as follows:Frank $50Joe $100Callie $300Would fireworks pass a cost–benefit analysis?Explain.b. The mayor of Bayport proposes to decide bymajority rule and, if the fireworks referendumpasses, to split the cost equally among allresidents. Who would vote in favor, and whowould vote against? Would the vote yield thesame answer as the cost–benefit analysis?c. In the town of River Heights, each of the residentsvalues the public good as follows:Nancy $20Bess $140Ned $160Would fireworks pass a cost–benefit analysis?Explain.d. The mayor of River Heights also proposes todecide by majority rule and, if the fireworksreferendum passes, to split the cost equallyamong all residents. Who would vote in favor,and who would vote against? Would…
- Sub : EconomicsPls answer very fast.I ll upvote. Thank You The figure below shows the market for water-skiing permits on Shuswap Lake in British Columbia. Every person who wishes to water ski must obtain a permit, which is valid for one day. Suppose that each water skier imposes a $4 negative externality on other people who use the lake.Two towns, each with three members, are decidingwhether to put on a fireworks display to celebrate theNew Year. Fireworks cost $360. ln each town, somepeople enjoy firewurks more than others.a. ln the town of Baypor~ each of the residents val•ues the public good as follows,F,ank $50Joe $100Call ie $300Would fireworks pass a cost-benefit analysis?Explain.b. The mayor or Bayport proposes to decide bymajority rule and, if the fireworks referendumpasses, to split the cost equally among allresidents. W'ho would vole in favor, and whowould vote against? Would the vote yield thesame answer as the cost-benefit anal)•Sis?c. In the town of River Heights, each of the residentsvalues the public good as follows:Nancy $20Bess $140Ned $160Would fireworks pass a cost-benefit analysis?Explain.d. The mayor of River Heights also proposes todecide by majority rule and, if the fireworksreferendum passes, lo split the cost equally amongall residents. Who would vote in favor, and whowould vote against? Would…Both public good;; and common resources involve b. How can the government solve the problemexternalities. caused by people like Fredo?a. Arc t~ extemalities associated with public goodsgenerally positive or negative? Usc examples in your answer. Is the froe. market quantity of public goods generally greater or Less than the efficientquantity?b. Are the externalities a.;;sociated with commonresources generall)' positive or negative? Uscexamples in your answer. Is the free·market usc ofcommon resources generally g:reatc.r or less thanthe efficient use?