Explain why economists might say that the market for higher education demonstrates externalities and market fairlure.

Q: Illustrate using your own words and a suitable example the effect of negative externality such as…

A: Externality is the negative or positive spillover by the consumer or producer which affects the…

Q: Before Coase's 1960 paper the only real course of action economists prescribed for dealing with…

A: In a market, externality generally present with almost all types of work or activity. It is…

Q: Why transaction cost has become the reason to solve an externality problem?

A: Externality is the negative or positive spillover by the consumer or producer which affects the…

Q: If education produces positive externalities and the government does not intervene in the market, we…

A: Positive externalities occur when an activity creates a benefit to the third person who is not…

Q: Explain how the effects of externalities can be remedied

A: Externalities are spillover effects on third part or on society because of consumption or production…

Q: Why are efficiency taxes preferred to regulatory policies as methods remedy externalities?

A: Externalities alludes to circumstances when the impact of creation or utilization of labor and…

Q: 38. Negative externalities are also called a. positive externalities. b. external benefits. c.…

A: Externalities is the impact of action happening between two parties on some other third party.

Q: A college education creates positive externalities. Use the accompanying graph which represents the…

A: As Education creates positive externality, the Demand curve will shift to the right, giving rise to…

Q: How large tax rate should the government use to eliminate a negative externality? Why does this tax…

A: A negative externality occurs when the production/consumption of a   leads to a cost for third…

Q: Consider the following event and identify which type of externality it creates: “…. Congestion…

A: 'Congestion caused by driving car to work' This means that too many drivers driving the car to work…

Q: In what ways do company investments in research and development create positive externalities?

A: Answer: Positive externality refers to the positive impact on a party due to the actions of another…

Q: explain the concepts of public goods and externalities, how an externality leads to a market…

A: The economist Adam Smith advocated that there should be limited government intervention so that the…

Q: Discuss negative externality its causes and possible solutions

A: Negative Externalities refers to the cost of consuming a good borne by the third party who is not…

Q: Graph the price of donuts before and after the negative externality impacted the price of donuts in…

A: If the consumption of a thing cost the third party who is not directly involved in the market…

Q: Give an example of a negative externality that you have witnessed or are personally aware of. Who is…

A: One day, one of my neighbors was smoking in a public park with kids around. His smoking was…

Q: Give an example of a positive and negative externality.  Explain why market outcomes are inefficient…

A: Externality is an economic term referring to the cost (negative) or benefit (positive) caused by a…

Q: The people of Chingola district a town in the Copperbelt province of Zambia are concerned over the…

A: Externality means spillover effect of economic activities motivated by profit or satisfaction on…

Q: Which of the following represents the true economic cost of production when firms produce goods that…

A: Externality can be classified into two parts, Positive externality and negative externality. In…

Q: How can the government solve this externality problem? Explain in detail.

A: When markets are functioning well, all the prices and benefits of a transaction for a decent or…

Q: A college education creates positive externalities. Use the accompanying graph which represents the…

A: Externalities refer to the cost or benefit of an economic transaction incurred on a third party who…

Q: Give an example for a negative or positive externality and explain the inefficiency this negative or…

A: Externality is the negative or positive spillover by the consumer or producer which affects the…

Q: a.) Taxes used to correct for a negative externality b.) Subsidies used to correct for a positive…

A: a. To use taxes to correct for negative externality, the Government needs to estimate value of…

Q: Which of the following is NOT the way to solve the problem of negative externalities? a. Transfer…

A: In economics, the term externality is used to define the impact of one's action on any other…

Q: Education provides both private benefits to those who receive it and broader social benefits for the…

A: Externality is the negative or positive spillover by the consumer or producer which affects the…

Q: Explain 'negative externalities,' defined in class as 'hidden costs' making the difference between…

A: ▪︎Negetive Externalities:- Negative externalities happen when the item and additionally utilization…

Q: A negative externality causes Select one: a. the social cost of production to be greater than the…

A: Externality is a situation in which the action of one party causes consequences to a third party who…

Q: Explain the role of the government is trying to provide a solution when an externality is present

A: Externalities are the costs and benefits that affect a third party who actually does not choose to…

Q: Give an example of a negative externalitity and a positive externality

A: Externalities are costs or benefits to a third party who is not involved in a particular market…

Q: Using a supply and demand diagram, demonstrate how a negative externality leads to market…

A: Externalities refer to the cost or benefit of an economic transaction incurred on a third party who…

Q: Discuss the public choice theory or model. How does it relate to rivalness and excludability?

A: The public choice theory or model can be understood as the use of economic tools that help to deal…

Q: When it comes to externalities, the free market generally ignores any kind of private production or…

A: Externality refers to the spillover effect of a good or service on third party of the society.

Q: Next question Which of the following is an example of a positive externality? A. A lower inflation…

A: Positive externality refers to the situation when social benefits exceed private benefits. It refers…

Q: Define externality and please make sure to include three (3) key characteristics of the effects of…

A: Market failure occurs as a result of externality as the demand and supply do not represent the exact…

Q: What externality problem do you expect in the market for plastic bags? How does the government…

A: The externality is the cost to the third party which is born by the society who does not involve in…

Q: What is an externality? What are the possible remedies (private or government) to externalities?

A: An externality is a cost or benefit of an economic action that is experienced by a distinct third…

Q: Do market demand curves reflect positive externalities? Why or why not?

A: Generally the market demand curve reflects the private benefit received from consumption of goods.

Q: Can policy market interventions cause consumer or producer surplus? Explain why using specific…

A: The policy market intervention is a way that interferes with the market. These can be price controls…

Q: What do you think are the top 2 most significant externalities cost that  we face today and what can…

A: There are so many externality costs in reality. But there are some externality costs that we are…

Q: Smokers impose negative externalities on nonsmokers. Suppose the airspace in a restaurant is a…

A: Externality refers to the effect of some economic activity (consumption or production), associated…

Q: Using demand and supply diagram, describe and discuss positive externality in production of a…

A: Positive externality is a situation where a third party is benefitted from the…