Ceteris paribus, goods with "positive externalities" tend to be developed economies these goods are often by the free-market private sector; thus, in modern by the government. Select one: a. over-supplied; taxed b. under-supplied; taxed C. over-supplied; supplied or otherwise subsidized d. under-supplied; supplied or otherwise subsidized

Ceteris paribus, goods with "positive externalities" tend to be developed economies these goods are often by the free-market private sector; thus, in modern by the government. Select one: a. over-supplied; taxed b. under-supplied; taxed C. over-supplied; supplied or otherwise subsidized d. under-supplied; supplied or otherwise subsidized

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter3: Economic Decision Makers

Section: Chapter Questions

Problem 16PAE

See similar textbooks

Similar questions

What is a market-failure rationale for the government investing in education and training programs? a. Education likelyresults in a negative externality in production, so government investment corrects for the under-provision by private, unregulated markets. b. Education likely results in a positive externality in consumption, so government investment corrects for the under-provision by private, unregulated markets. c. Education likely results in a positive externality in production, so government investment corrects for the over-provision by private, unregulated markets. d. Education likely results in a negative externality in consumption, so government investment corrects for the over-provision by private, unregulated markets.
Kindly assist with the above two questions. 1) Besides raising revenue, what is the most likely goal of government that enacts a per unit tax. a) to increase market competition. b) to correct for a positive externality c) to correct for a negative externality d) to encourage production of private goods. e) to increase profit and encourage production. 2) Country A can produce a gadget at a lower cost than any other producer of gadgets. As a result , Country A must have. a) a superior gadget making technology b) an absolute advantage gadget production . c) a comparative advantage in gadget production. d) a constant opportunity cost associated with gadget production e) more factors of production devoted to gadget production than any other country.
Which of the following types of goods and services should be taxed in order to discourage their production? Which of the following types of goods and services should be taxed in order to discourage their production? Goods and services with high inocme elasticities of demand Goods and services with negative externalities Goods and services with high price elasticities of demand Goods and services with positive externalities
Discuss how governments decide the optimal level public good provision and then consider the impact of taxation due to such provision. Use examples to substantiate your points.
1. Illustrate and explain the simultaneous impact of TRAIN law on the lower income group’s consumption of instant coffee. Compare and contrast the equilibrium price and quantity before and after the implementation of the law. 2. Illustrate and explain why there are very little clean Public Comfort Rooms that are free or are donation-based. Provide a possible solution to this problem (15 pts) (hint: analyze public CR as a positive externality) 3. Do you think that the TRAIN law was/is successful as a pro-poor taxation program? Why or why not?
6. All of the following are sources of inefficiency except: a. public goods. b. the invisible hand. c. external costs. d. price ceilings. answer. (b. the invisible hand.) 9. Which of the following is the most correct statement about tax burdens? a. A tax burden falls most heavily on the side of the market that is closer to unit elastic. b. A tax burden falls most heavily on the side of the market that is elastic. c. A tax burden is distributed independently of relative elasticities of supply and demand. d. A tax burden falls most heavily on the market that is inelastic. answer (c. A tax burden is distributed independently of relative elasticities of supply and demand.) 16. The Coase theorem suggests that: a. the government should be actively involved in solving the problem of externalities. b. private parties may be able to solve the problem of externalities on their own. c. high transaction or bargaining costs are necessary in solving the problem of externalities. d.…
Suppose the demand and supply curve for crude oil at any given period is: Pd= =380−3Q and Ps=28+1Q Where price is measured in dollars and quantity is measured in barrels. Furthermore, for each barrel of oilproduced, there is $32 worth of negative externality. The market currently unregulated and produces 88 barrels of oil and the market price is $116. Externality, Part A: What is the Total Social Welfare before government regulation?
Which of the following statements about corrective taxes is generally not true? a) Economists prefer them to command-and-control regulation. b) They raise government revenue. c) They cause deadweight losses. d) They reduce the quantity sold in a market.
What is a market-failure rationale for the government investing in transportation and infrastructure, for example roads, highways, bridges and tunnels? a. Government policy acts to correct for the under-provision of private goods by the private, unregulated market. b. Government policy acts to correct for the over-provision of private goods by the private, unregulated market. c. Government policy acts to correct for the over-provision of public goods by the private, unregulated market. d. Government policy acts to correct for the under-provision of public goods by the private, unregulated market.
There are three individuals in a community: 1,2 and 3. Their valuations of the public good, G, are MB1=40-2G , MB2=20-G and MB3=10-G/2 . Let MCG=ACG= 12 a )Suppose the individuals must vote to determine the level of G, assuming that person 3 pays all of the cost. What will G be, according to the median voter theorem? Show your work b). Quantify the magnitude of the inefficiency caused by voting in part (a) That is, calculate the net loss of total social surplus that occurs because of the G you found in (a)
I need help with question 2. You guys have already answered number 1. Externalities and Tax Incidence 1. Sketch a supply and demand framework for paved driveways. Who do you suppose is less elastic, consumers or sellers? Be sure your model reflects this (there are no wrong choices of who is less elastic; just take your pick if you don't have a good idea). 2. Assuming that impervious surfaces are damaging to waterways, include a new supply curve into model that reflects all costs of production. 3. Suppose a tax is imposed on the buyers of driveways. Suppose the tax is exactly the right amount to make the quantity achieved equal to the new equilibrium. Sketch the change(s) to the market with your tax imposed. Identify the losses to consumers and suppliers, dead weight loss and government revenue. Discuss dead weight loss in this context. 4. What will likely to happen to employment in the production of driveways? Why? 5. What other policy alternatives, generally, are available to address…
Redistributive expenditure can take the form of direct cash transfers (grants) and/or inkind subsidies. Using diagrams, discuss the merits of these two transfer types in the presence and absence of a positive externality.