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- Which of the following factors contribute to economicgrowth? a)an increase in the proportion of the population that iscollege educated b)an increase in theaverage wage rate paid to workers c)an increase in thestandard of living d)a decrease in theproductivity of laborSocial efficiency requires that, if Q 1 units are bought and sold in a market, then the ____ of Q 1 equals the social marginal cost of Q 1. A. Pareto-efficiency B. social welfare C. social marginal benefit D. social net-gainIn 2006, the Australian Government incorporated research into corporate social responsibilities to determineif there is a need to include social and environmental responsibilities within the Corporation Act throughamendment procedure. It was decided not to incorporate a particular regulation through legislation, insteadrely upon the 'market forces' to encourage companies to do the 'right thing'. This viewpoint was expressedthat if companies did not look after the environment or did not act in a socially responsible manner, peoplewould not want to consume the organisations' products. From the equity market perspective, potentialinvestors would not want to invest in the organisations, and further workers wouldn't want to work for them,and so forth. Because companies were aware of such market forces, they would do the 'right thing' even inthe absence of legislation.Requirement:1) Using theories such as Public Interest Theory, Capture Theory and Economic Interest Group Theoryto critically…
- No more than 100 words for the answer: Explain, in your own words, the implications of the Positive Coase Theorem for the efficient allocation of property rights. As part of your answer, discuss the role played by transactions costs in the Coase Theorem.Chicken production generally results in terrible odours that are carried by the wind to rural communities. This is an example of a ______________, with a result of ____________ of resources in chicken production.a. Negative externality, under-allocationb. Positive externality, over-allocationc. Positive externality, over-allocationd. Negative externality, , over-allocationFor each of the alternatives, explain which one is correct and also explain which ones are false or uncertain.Please helo me with this question There are 50 residents that live in a small town in California. Each resident uses electricity and there is one power station that produces electricity for the residents from coal. Each residents' demand for electricity is Q = 10 - 2P and the supply function for the power plant is Q = 150P. For each unit of electricity that the power station produces, there is a corresponding release of pollution that leads to asthma and other health problems for the 50 residents. The marginal damage of each unit of electricity produced, per person, is $.05. a. What is the market equilibrium price and quantity per unit of electricity? b. What is the efficient Pigouvian tax per unit of pollution? c. The government of this small California town decides to impose the efficient Pigouvian per unit tax on the power station. What is the new social optimum price and quantity per unit of electricity? d. What is the government tax revenue? e. What is the gain in total…
- A global-positioning anti-theft device installed by one car owner can produce a positive spillover to other citizens in a community. Discuss the impact on the: (v) Market equilibrium level of output (vi) Efficient level of outpuThe market for paper in a particular region in the United States is characterized by the following demand and supply curves: QD = 160000 - 2000P QS = 50000 + 2000P where QDis the quantity demanded in 100-pound lots, QS is the quantity supplied in 100-pound lots, and P is the price per 100-pound lot. Currently there is no attempt to regulate the dumping of effluent into streams and rivers by the paper mills. As a result, dumping is widespread. The marginal external cost (MEC) associated with the production of paper is given by the curve: MEC = 0.0006Qs Find the competetive equilibrium price and quantity with no attempt is made to monitor or regulate the dumping of effluent. Then find the socially efficient price and output of paper.How Bergson-Samuelson Social Welfare Function used in a model that considers a society's desire for both Pareto optimality and fairness, Mention all necessary assumptions and specify the conditions that ensure a general equilibrium and social welfare
- A global-positioning anti-theft device installed by one car owner can produce a positive spillover to other citizens in a community. Discuss the impact on the: (v) Market equilibrium level of output (vi) Efficient level of outputwhat is the role of government in bringing about Pareto-efficiencyMark the correct answer(s) d. Heterogeneity leads to more infomation that a consumer has to collect before being able to make a rational decision. e. If one market side has more information than the other side, economist name this situation as asymmetric information. f. Negative external effects lead to a higher than optimal market quantity. g. Competitive markets are assumed to have total transparency and information. h. Most markets do not produce or trade homogeneous, but heterogeneous goods. i. Akerlof's lemon market model and the solutions show that goverment does not always have to intervene to keep the market working in case of asymmetric information. j. Positive external effects do not need a corrective intervation. Please answer all with short explanation