Answered: List two advantages a…

List two advantages a command-and-control policy has over a pollution tax policy. (ii) List two advantages a pollution tax policy has over a command-and-control policy.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section30.3: Environmental Policy

Problem 3ST

See similar textbooks

Related questions

Q: Consider a world composed of two countries, Home (H) and Foreign (F). Individuals living in each…

A: The value of alternative opportunities foregone and sacrificed to acquire one unit of a commodity is…

Q: What condition(s) are necessary for disequilibrium unemployment to exist? O a. Wages are sticky and…

A: A situation in which the labor market is not in equilibrium, meaning there is an imbalance between…

Q: What is the most salient feature of Canada's employment insurance system that sets it apart from its…

A: Employment insurance (EI) refers to a social insurance program in Canada that gives temporary…

Q: The marginal benefit of being able to emit a ton of sulphur dioxide emissions for two firms are…

A: The two marginal benefts are MBX = 320 - EX/3 MBY = 500 - EY/2 Government regulators want to reduce…

Q: b) Suppose that the yield to maturity of the bond is i = 0.05. What is the quantity…

A: The amount of a given commodity or service that consumers want to buy (demand) and how much that…

Q: Country Canada China India Mexico United Arab Emirates Iran + Country Canada China India Mexico…

A: Revealed Comparative Advantage (RCA) index: The RCA index measures a country's comparative advantage…

Q: 1. Using an example, explain how John Maynard Keynes distinguished macroeconomics from…

A: 1. John Maynard Keynes distinguished macroeconomics from microeconomics by emphasizing that…

Q: The Philippine Institute of Industrial Engineers (PIIE) is planning to put up its own building. Two…

A: In economics, present value refers to the current value of a stream of cash flow. The net present…

Q: At an intial point on the aggregate demand curve, the price level is 100, the real GDP is $18…

A: Macroeconomic policy refers to governmental measures which try to accomplish macroeconomic…

Q: The advent of interest-earning checking accounts in the early 1980s led many households to keep a…

A: Aggregate demand curve shows the quantities demanded by the consumers at different price levels in…

Q: A network effect generally pushing prices as the network expands. O higher; lower lower; higher O…

A: In economics, a network effect is the peculiarity by which the worth or utility that a user derives…

Q: True/False/Uncertain a) Higher marginal cost (higher level, but always constant), lower fixed part…

A: A pricing strategy that involves charging customers two separate fees to access a particular product…

Q: Below are the annual costs and benefits of four alternative road projects. Apply the incremental B/C…

A: Incremental Benefit-cost ratio analysis is a method to find the most preferred alternative. The…

Q: QUESTION 31 If the consumption function in the economy is: 500+0.5*Y (Y refers to national income)…

A: Aggregate demand refers to the total demand for commodities and services made by all the economic…

Q: Structural unemployment denotes the type of unemployment arising from O a. declining industries and…

A: Unemployment: The term unemployment refers to the economic situation when a person in an economy is…

Q: A buyer for a retail store negotiates discounts of 30%, 15%, and 5% (taken successively) on a…

A: Discount means a fall in the usual price for something.

Q: Patents, copyrights, and trademarks are all mechanisms to promote screening or signaling.…

A: Patents, copyrights and trademarks are given to the creators of ideas, technology, or products for…

Q: Nora's demand function for good x is x* = 2Px - 1. Her wealth is $100 and the price of good x is $5.…

A: Given Nora's demand function for good X x*=w2Px-1 Nora's wealth w =$100 Price of good x =$5 To…

Q: If the AD shortfall is $300 billion and the MPC is 0.95, Instructions: Round your responses to one…

A: Given The aggregate demand shortfall is $300 billion and the marginal propensity to consume MPC is…

Q: provide a critical discussion of how the zero based budgeting approach can be a strategic budget…

A: Zero based budgeting is a novel economic proposal that involves re-evaluation of activities and an…

Q: 6. Which of the following is correct? A. Preferential use' attempts to establish a hierarchy of…

A: A prior appropriation system is a system for the water rights allocation that gives the priority…

Q: Suppose Rian operates a handicraft pop-up retall shop that sells cardigans. Assume a perfectly…

A: Marginal Cost: The additional cost used to produce the additional unit is called the marginal cost.…

Q: The price of natural gas has been zooming up from $4 per MMBtu on December 31, 2021 to $8 on pril…

A: Given that, The price of natural gas has been zooming up. Price on Dec. 31, 2021 = $4 MMBtu Price on…

Q: Exsplain the different ways government can help regulate demand and supply

A: Government intervention refers to the actions taken by a government to influence the behavior of…

Q: A project has an uncertain first cost and useful life. What is the expected value for each variable?…

A: Suppose a variable X have values x1, x2, x3 & their corresponding probabilities are p1 , p2…

Q: Antonio and Dmitri are considering contributing toward the creation of a public park. Each can…

A: A public good is a good whose consumption is non-rival and non-excludable, i.e., even those who do…

Q: A firm produces output according to a production function: Q = F(K,L) = min {6K,2L}. a. How much…

A: Production function: Q = min {6K , 2L} Where Q is the quantity produced, K is capital and L is…

Q: In the following diagram representing peak-load pricing for a Broadway show, what is the off-peak…

A: Peak load pricing is when a firm charges a higher price during the time period of high demand and…

Q: On the following graph, use the green point (triangle symbol) to plot the weekly total revenue when…

A: The demand curve depicts the combination of price and quantity demanded, keeping other factors of…

Q: 5. Compare and contrast how the UK macroeconomy and its policymakers responded to sharp increases in…

A: ***Since the student has asked for a specific question to be solved, the expert is required to solve…

Q: Suppose consumers have pre ences over consumption of wine an summarized by the utility function u =…

A: Optimal consumption bundle: The optimal consumption bundle is such that at that bundle the…

Q: 8. 'The LM curve shows points of equilibrium, but the TR curve shows policy responses.' Explain in…

A: The LM (Liquidity-Money) curve and the TR (Tax and Revenue) curve are two graphical portrayals…

Q: ! Required information Parker Hannifin of Cleveland, Ohio, manufactures CNG fuel dispensers. It…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: Question 2 (3,2) P2 (1,-1) P1 (0, 1) What is the Nash equilibrium of the game? * (a) (B; C, F) * (b)…

A: A state of a game where each player's strategy is the best reaction to the other players'…

Q: 1. Solve the difference equations and analyze the time paths 2. 1 Yt+2 - Yt+1+Yt = 1 Yo = 4, Y₁ = 7

A: Difference equations are widely used to determine the conditions of dynamic stability in lagged…

Q: Find the Rollback Equilibrium if it exists. Justify each step in the process as you do so. Cake 1…

A: Nash equilibrium is the point of a game corresponding to which each participant optimizes his…

Q: QUESTION 48 An increase in the money supply causes: O a. interest rates to rise, investment spending…

A: In money market, the equilibrium rate of interest and quantity of money is found out by the…

Q: oanable fund graph- show the result of a fiscal, crowding out and the effect on the supply of…

A: The loanable funds market is a crucial part of the economy because it gives the lenders chance to…

Q: The ability to sign up for a 30-day trial of Hulu directly from one's TV is an example of a s teaser…

A: Business strategy refers to a set of actions and decisions made by a company's leadership to achieve…

Q: If a firm engages in perfect price discrimination, it charges

A: Price discrimination alludes to charging various prices to various customers for a similar item or…

Q: ing off debt over time in e interest. As the loan amortizes, the amount O a. Even, proportionally O…

A: An amortized loan is a loan that is paid off over time in equal instalments, with each payment…

Q: Please match each of the labels with the correct description. These can be purchased in order to…

A: A financial security is a type of investment instrument that represents a financial value or claim…

Q: 30. A dealer decides to sell an antique automobile by means of an English auction. There are two…

A: The dealer believes that there are only three possible values, $6,300, $3,600, and $1,800, that each…

Q: The figure provides the yield spreads of the long-term corporate bonds versus U.S. treasury bonds.…

A: The bond spread or bond yield is the difference in the yields of two different classes of bonds…

Q: QUESTION 32 The optimal consumption point in an economy with two goods A and B is where: O a. The…

A: Optimal consumption bundle: The optimal consumption bundle is such that at that bundle the…

Q: consumer values a car at $30,000 and a producer values the same car at $20,000. What amount of tax…

A: The consumer values a car at $30,000 It means the maximum price consumer is willing to pay for a car…

Q: How did the two studies on Seattle minimum wage rise in 2015 give seamingly contradictory results?

A: Minimum wage policy: This refers to the laws and regulations that set the minimum wage that…

Q: 7. As shown in the diagram to the right, the short-run aggregate supply curve (AS) is…

A: The aggregate supply (AS) curve is a graphical representation of the relationship between the total…

Q: If the town's MARR is 10% per year, use the B-C ratio method to determine which system is best.…

A: The capital investment cost is the initial cost of investing in a specific project or asset. The…

Q: (a) If the firms each operate independently, what will the equilibrium amounts of honey and apples…

A: In economic matters, an externality is a cost or advantage to a uninvolved outsider that emerges as…

Question

List two advantages a command-and-control policy has over a pollution tax policy. (ii)

List two advantages a pollution tax policy has over a command-and-control policy.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Negative externality:

VIEW

Step 2: Advantages a command-and-control policy:

VIEW

Step 3: Advantages of tax policy:

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

From an economic viewpoint, the optimal amount of pollution a. is zero because all pollution imposes costs on society. b. is that amount firms create when they maximize economic profits by setting their marginal private costs equal to market price. c. is that amount where the marginal social costs of producing a good precisely equals the price of the good. d. Both answers b. and c. are correct.
(External Costs with Variable Technology) Think of an industry that pollutes the water and has access to variable technology for reducing that pollution. Graphically illustrate and explain the impact of each of the following, other things constant, on the optimal level of water quality: a. New evidence is discovered about a greater risk of cancer from water pollution. b. The cost of pollution-control equipment increases. c. A technological improvement reduces the cost of pollution control.
Education provides both private benefits to those who receive it and broader social benefits for the economy as a whole. Think about the types of policies a government can follow to address the issue of positive spillovers in technology and then suggest a parallel set of policies that governments could follow for addressing positive externalities in education.
The perfectly competitive profit-maximizing firm in Exhibit 6 creates water and air pollution as a consequence of producing its output of pigs. If pollution costs are borne by third parties, the firm will maximize economic profit by choosing to a. voluntarily incur costs to reduce its pollution. b. produce at output rate Q3. c. produce at output rate Q2. d. produce at output rate Q4. EXHIBIT 6 Private and Social Cost