problem set 2

These bills fall into two categories, private and public. A public bill is any bill that affects the public or the nation. An example of a public bill

Public goods are non-competitive, and they can be consumed by many people, and a marginal cost for increase in consumer spending is zero. Consumers get some effectiveness from public goods, and its consumption of the marginal cost for a certain degree of effectiveness is zero. From the perspective of efficiency (price equal to marginal cost), t all people should enjoy free public goods. If public goods are produced by the private sector, then they will be bankrupt.

The Internet was first used in the nineteen sixties by a small group of technology professionals. Since then the internet has become an essential part of today’s world, from communicating through texts and emails to banking, studying, and shopping, the internet has touched every aspect of our lives. With the growing use of the internet, protecting important information has become a must. While some believe they have the right to privacy, and feel that the government should not be at the center of their lives. Others feel that the Internet has evolved into a weapon for our enemies, and believe the government must take action by proactively

First and foremost , there are four main characteristics that defines a public budget. The first characteristic involves organizations and individuals with different views and goals trying to get a share of the budget. Second, public budgets are open to the environment, citizens, interest groups, press and politicians while

The definition of public goods is: A public good is an item consumed by society as a whole and not necessarily by an individual consumer. Public goods are financed by tax revenues. All public goods must be consumed

For partial credit, formulas and work, appropriately labeled, must be shown. There is no partial credit for multiple choice or true/false questions.

Problem Set 1 is to be completed by 11:59 p.m. (ET) on Monday of Module/Week 2.

The term 'suppliers' comprises all sources for inputs that are needed in order to provide goods or services. If there is a market with much choice supplier choice, bargaining power will be less.

A public business is when they are not looking forward to making money like unicef

Negative externalities are detrimental third-party effects caused by the production and/or consumption of a good. A public good is a good provided free of charge to the consumer, by the government. A public good is non-excludable and non-rivalrous. A merit good is a good that gives positive externalities upon production and/or consumption. A merit good is non-excludable, yet rivalrous.

Public sectors are government controlled services that provide for both basic and essential needs of the general community. The content of government sectors varies between countries, however in most countries these include Police, Health care, Fire brigade, Military, Public transport etc. (PrivacySense.net, 2014).

As seen from both Figure 2 and Figure 3, the application of negative externality of consumption is appropriate, as it clearly indicates the before and after results of the implementation of the tax. As clearly shown, overconsumption leads to social inefficiency, but by applying a tax, a decrease in the consumption of plastic bags can allow for a shift of the market. The increase in social efficiency also allows for social cost and benefit to be equal. By applying taxes on the plastic bag negative externality it allows for a reduction in the supply of plastic bags. Due to this tax, the supply curve S1 will shift upwards to S2. This will inherently also reduce the gap between Qefficient and

4) The Problem Set #1 (only the question solutions portion) is due at the end of the day on September 24th.

According to Labaree (1997) “a public good is one where benefits are enjoyed by all the member of the community, whether or not the actually contributed to the production of this good”. On the other hand, economic literature states that a good can be considered public if it is not excludable and nonrival. The first characteristic means that if an individual consume this good the other people are not excluded from consuming it. The second means that when one person consumes the amount available to other people does not reduce the quantity available for others (Varian, 1992).

(ii) The government may impose excise taxes on goods so as to discourage their consumption or production. known as sumptuary taxes, e.g. taxes on the consumption of alcoholic drinks