In the real world it is,the case that all the conditions for markets to be efficient hold, so in the modern economic systemsgovernments.Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.a rarely; make most economic decisionsrarely; intervene to corect market failuresc often; have no influence on market outcomesoften; only provide public goodsWhich of the following statements are true? (Check all that apply.)Multiple answers: Multiple answers are accepted for this questionSelect one or more answers and submit. For keyboard navigation. SHOW MORE Va Unregulated markets fail to efficiently provide private goods.An unregulated market is efficient when it generates externalities.Markets regulated by government can be more efficient than unregulated markets.dUnregulated perfectly competitive markets are not always efficient.The market for medical services is inefficient becauseSelect an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.a the good traded is a private goodconsumers cannot influence the pricenegative externalities are generated when the services are providedd relevant information is not available to buyers

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In the real world it is governments the case that all the conditions for markets to be efficient hold, so in the modern economic systems Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a rarely, make most economic decisions b rarely; intervene to correct market failures e often; have no influence on market outcomes often; only provide public goods

In the real world it is governments the case that all the conditions for markets to be efficient hold, so in the modern economic systems Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a rarely, make most economic decisions b rarely; intervene to correct market failures e often; have no influence on market outcomes often; only provide public goods

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 27RQ: In the tradeoff between economic output and environmental protection, what do the combinations on...

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The three residents of Smallville are consideringa fireworks display. Clark values this public goodat $80; Lana at $50; and Pete (who dislikesfireworks) at −$30. Fireworks cost the town $120,or $40 per person. The efficient outcome is for thetowna. to provide the public good because the medianperson values it more than its cost per person.b. to provide the public good because a majorityof the residents value it more than its cost perperson.c. to provide the public good because the total valueof a majority exceeds the total cost.d. not to provide the public good because the totalvalue of all residents is less than the total cost.
Suppose that the government decides to issuetradable permits for a certain form of pollution.a. Does it matter for economic efficiency whether thegovernment distributes or auctions the permits?Why or why not?b. If the government chooses to distribute thepermits, does the allocation of permits amongfirms matter for efficiency? Explain.
12. A justification for government intervention in the economy arises from the fact that market systems usuallyproduce ________ outcomes, but they do not necessarily produce ________ outcomes.A Efficient; equitableB Equitable; efficientC Efficient; profitableD Profitable; equitable
Conversely, show geometrically the effect of a decrease in Price (i.e., BELOW the equilibrium price). What “economic problem” is created now in the market. Measure geometrically he magnitude or distance of such “economic problem”. Again, in the face of such an economic problem, where private sector buyers and suppliers could not do anything more, which economic actor should come to intervene properly? Discuss what should that intervener do amidst such economic problem faced by the microeconomic actor – NOTABLY THE PRODUCER OR SELLER. As an Economist (or beyond the limits of Economic studies), what would you recommend to the VEGETABLE PRODUCERS and to the GOVERNMENT as well? Discuss exhaustively.
The climate policy toolkit has, to-date, mostly focused on demand side policies (i.e. policies that affect the pollution demand curve), some of which are ‘command-andcontrol’ and others are market based (e.g. cap-and-trade schemes, carbon taxes). (a) Explain what is meant by command-and-control in terms of a demand side climate change policy. What are the pros and cons of this as a policy option? (b) Using a diagram, explain how a carbon tax could help reduce pollution.
Which one of the following is a definition of a merit good? A) Services which can only be provided by the government through taxesB) Goods which provide cear social and private benefits to consumersC) A good which can be produced by the market but would likely be under-consumedD) Goods which are beneficial in consumption but consumers are unaware of the extent of the benefitsE) Goods which are not capable of being provided by the market because they are excludable and rival Merit goods are an example of which of the following problems in economics:A) Free riderB) Principal-agentC) Tragedy of the CommonsD) Intertemporal choiceE) Excludable, non-rival goods provision De-merit goods have characteristics that if left the market mechanism, they are over consumed and impose private costs on the individual consume them, and also have wider social costs. Which of the following ways in which a government might seek to reduce consumption of of merit costs? Check all the apply A) Impose…
The climate policy toolkit has, to-date, mostly focused on demand side policies (i.e. policies that affect the pollution demand curve), some of which are ‘command-and control’ and others are market based (e.g. cap-and-trade schemes, carbon taxes). Suppose the government decided to issue tradeable permits for a certain form of pollution, does it matter for economic efficiency whether the government allocates the permits to firms or whether it auctions them off? Why or why not?
Draw a production possibility frontier. The vertical axis shows theproduction of public sector goods and the horizontal axis showsproduction of private sector goods. The economy is currentlyproducing at point A on the frontier where 50 per cent of allproduction is devoted to public sector goods and 50 per cent toprivate sector goods.(a) Mark the following points on your drawing.(i) Point A.(in) Point B which shows production following the election of agoverment which increases government spending on botheducation and the National Health Service.(ili) Point C where unemployment is present in the economy.(iv) Point D where the government takes over production of allgoods and services in the econory.(b) Draw another diagram putting on it the original productionpossibility Frontier you drew for (a), labelling it AA.(i) Draw a new production possibility frontier on the diagram,labelling it PP, which shows the position after a devastatingwar has hit the economy.(in) Draw another PPF…
a. What type of market failure would you categorize street lights that are not working? b. Base on the question above, discuss why the type of market failure occur. c. Suggest two relevant Government policies that would yeild the efficient outcome and explain the process through which the implementation of the policies will lead to optimal out come.
1) Generally, a high GDP per Capita indicates a developed nation. a) Sometimesb) With exceptionsc) Trued) False 2) With the advent of globalization and the WTO operations, which of this ishappening or have happened? a) Free-Market Analysisb) Public-Choice Theoryc) Chenery Modeld) Neocolonial dependence modele) Market-Friendly Approach
Give typing answer with explanation and conclusion Why the market tends to fail when dealing with environmental issues? It is said many externalities in environmental economics have features that are similar to that of public goods. We know that the provision of some public goods such as lighthouse can be solved through the market rather effectively. What makes environmental goods such as clean air different from other public goods such as lighthouse? Why is it more difficult to solve the provision of clear air through the market?
In 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…