3. If given the option to reduce pollution using regulation (equal reduction by each firm) or tradeable permits (between low and high-cost firms), which would an economist choose? Explain.
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- 19)Which of the following best illustrates the ceteris paribus assumption? * a)If the law requires people to wear seatbelts in order to reduce fatality rates, it may also cause people to drive faster. b)Chris notices that when economists discuss policy, they use the word "should" quite a lot, and they tend to disagree c)Felicia argues that since her company makes less profit when it limits its toxic pollution emissions, it must be true that pollution regulations are bad for everyone d)Caitlin notices that all other things being equal, her grades are higher the more time she spends studyingWhat are 4 examples of how non-rational human behavior can change an economic outcome?. Your best friend has just purchased a new Sport Utility Vehicle (SUV). “These things are great.” he says. “They can get you to the private unspoiled places no one else can reach. On the road, it’s nice because you sit so high and can see over the other cars.” Your friend thinks everyone should buy an SUV. Is there an error in his reasoning? If so, what is it? (Use economics terms).
- 1. A construction company provides free first-aid and CPR training to all employees in order to save money on liability insurance. This free training might be an example of a ______ because ______. (Both the example and the explanation must be correct.) - Rival good because every time someone learns CPR, another person must forget CPR. - Source of a negative externality because employees are probably bored during the training. - Source of a positive externality because employees may go on to save the lives of others, even outside the company. 2.The Coase theorem states that interested parties will negotiate to correct externalities if two assumptions are met. What are those two assumptions? All parties agree on the value of the externality. AND Parties have mutual respect for each other. Public good because non-employees were prevented from receiving the free training. No barriers to negotiation. AND All parties agree on the value of the externality. No…Is the economic model of decision-making intended as a literal description of how individuals, firms, and the governments actually make decisions?what are 2 assumptions that underline the conclusion that free market are efficient?
- Firms A and B each produce 80 units of pollution. The federal government wants to reduce pollution levels. The marginal costs associated with pollution reduction are MCA = 50 + 3QA for firm A and MCB = 20 + 6QB for firm B, where QA and QB are the quantities of pollution reduced by each firm. Society’s marginal benefit from pollution reduction is given by MB = 590 – 3Qtot, where Qtot is the total reduction in pollution. Explain how the social optimum can be achieved if firms are given equal numbers of pollution permits but are allowed to tradeMinutes of fireworks Anita's MB (dollars per minute) Steve's MB (dollars per minute) 16 $20 $28 17 18 25 18 16 22 19 14 19 20 12 16 The table above shows Anita and Steve's marginal benefits for the annual 4th of July fireworks show at City Park. If Anita and Steve are the only two people in the economy, what is the economy's marginal benefit from the 18th minute of fireworks? Group of answer choices $38 $33 $30 $162 $129Which of the following assertions regarding the economic approach is false?a. The goal of economic approach is to maximise net benefits.b. A change is economically efficient as long as marginal benefit is at least as greatas marginal cost.c. A change is economically efficient as long as the marginal social benefits exceedsmarginal private benefits.d. Economists prefer incentive-based policies to command-and-control.
- What do you understand the term “argument” to mean? Give oneor more examples of arguments in economics, and discuss how evidence and reasoning are combined to construct economics arguments. What makes a good economics argument?In environmental economics: Suppose that society wants to reduce the quantity of discharged residuals into the natural environment, what are 3 ways to do so? What are some obstacles that could be associated with each one?Bart and Lisa are kids. Their parents want to get a pet to keep them busy during a pandemic but they must choose between a dog and cat. Bart's value of the cat is $10 and his value of the dog is $40. Lisa's value of the cat is $30 and her value of the dog is $20. a. What is the efficient pet? [ Select ] ["cat", "dog"] Let's imagine that their parents flip a coin to decide who gets to choose the pet. Heads Lisa chooses and tails Bart chooses. b. If the coin comes up heads and there are no barriers to negotiation, what will Lisa choose? [ Select ] ["cat", "dog"] c. If the coin comes up tails and there are no barriers to negotiation, what will Bart choose? [ Select ] ["cat", "dog"] d. What if there ARE barriers to negotiation and the coin is heads, what will Lisa choose?…
