A government decides that product X is a demerit good and product Y is a public good. Which policy measures is it likely to adopt in relation to the two products? Pick a,b,c, or d a. X- subsidize & Y- impose a maximum price b. X- directly provide & Y- subsidize c. X- impose a maximum price & Y- tax d. X- tax & Y - directly provide

A government decides that product X is a demerit good and product Y is a public good. Which policy measures is it likely to adopt in relation to the two products? Pick a,b,c, or d a. X- subsidize & Y- impose a maximum price b. X- directly provide & Y- subsidize c. X- impose a maximum price & Y- tax d. X- tax & Y - directly provide

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 3PA

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Warm-glow: now consider the case where each individual cares only about their direct marginal benefit from the public good plus an additional warm-glow marginal benefit from giving as follows: WMBA=6-NA, WMBB=6-NB, and WMBC=24-NC, where NA, NB, and NC respectively represent Alice, Bianca, and Claire’s individual contributions. For example, Alice’s total marginal benefit is TMBA=MBA+WMBA=7-N+6-NA. Remember that N=NA+NB+NC. e. Who will contribute and how many works of art will be provided?
Warm-glow: now consider the case where each individual cares only about their direct marginal benefit from the public good plus an additional warm-glow marginal benefit from giving as follows: WMBA=6-NA, WMBB=6-NB, and WMBC=24-NC, where NA, NB, and NC respectively represent Alice, Bianca, and Claire’s individual contributions. For example, Alice’s total marginal benefit is TMBA=MBA+WMBA=7-N+6-NA. Remember that N=NA+NB+NC. Who will contribute and how many works of art will be provided?
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With examples or illustrations, explain any four conditions that can lead to market failure in Ghana. 8. With specific examples, explain any four situations in which market efficiency do fail. 9. With examples, explain any four ways by which taxation helps government role in Public Finance