Question 10 The length of oil pipeline started to decrease since 1990 because: O The demand to crude oil products decreased O Natural gas pipeline started to replace the oil pipeline O The diameter of oil pipeline increased, resulting in larger carrying capacity O The overall importance of pipelined decreased due to the heavy intermodal competition None of the above

Question 10 The length of oil pipeline started to decrease since 1990 because: O The demand to crude oil products decreased O Natural gas pipeline started to replace the oil pipeline O The diameter of oil pipeline increased, resulting in larger carrying capacity O The overall importance of pipelined decreased due to the heavy intermodal competition None of the above

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 22CTQ: Radio stations, tornado sirens, light houses, and street lights are all public goods in that all are...

See similar textbooks

Similar questions

Radio stations, tornado sirens, light houses, and street lights are all public goods in that all are nonrivalrous and nonexclusionary. Therefore why does the government provide tornado sirens, street lights and light houses but not radio stations (other than PBS stations)?
Assume that the marginal private costs of a film producing fuel-efficient can; is greater than the marginal social costs. Assume that the marginal private benefits of a firm producing fuel efficient cars are the same as the marginal social benefits. Discuss one wags.r that the government cans ï¬‚y to increase production and sales of fuel efficient cars to the socially desirable amount. Hint: the government is flying to affect production through costs, net benefits.
Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the model to show the impact of the negative externality from second-hand smoking. (Hint: In this case it is the consumers, not the sellers, who are creating the negative externality.) Label the social optimal output and price as Fe and Qe. On the graph, shade in the deadweight loss at the market output.
When economists say that one of the characteristics of a Public Good is that it is “non-excludable”, they mean: Select one: a. that the government makes the good widely available to virtually anyone in the economy. b. the good’s price is so low that virtually anyone can afford it. c. that once the good is supplied, it is difficult to prevent those who do not pay for it from consuming the good. d. that once a unit of the good is provided, it can be jointly consumed by more than one consumer at the same time.
. Some dissenting scientists at Environment Canada disagree with the estimate of $1.50 for theenvironmental externality. They believe that the incidence of the externality is not constant acrossdifferent levels of production; instead the size of the externality is proportional to the level of output.That is, the larger is the output, the larger is the externality. Their research suggests that the truesocial cost of cereal production diverges from private costs at every level of production by an amountequal to ten percent of production (note: ten percent, not ten percentage points).The government would like to know the economic effects of implementing a tax to internalise theexternality in this case. Draw the diagram for this market and policy. Solve for all relevant Ps and Qs.Calculate producer surplus
Radio stations, tornado sirens, lighthouses, and street lights are all public goods in that all are nonrivalrous and nonexclusionary. Therefore why does the government provide tornado sirens, street lights, and lighthouses but not radio stations (other than PBS stations)?
Both public goods and common resources involveexternalities.a. Are the externalities associated with public goodsgenerally positive or negative? Is the free-marketquantity of public goods generally greater or lessthan the socially efficient quantity? Cite examplesin your answer.b. Are the externalities associated with commonresources generally positive or negative? Is thefree-market use of common resources generallygreater or less than the socially efficient use?Cite examples in your answer.
Answer all parts please i have to submit this last question soon please 3. Correcting for negative externalities - Regulation versus tradablepermits Suppose the government wants to reduce the total pollution emitted by three local firms. Currently, each firm is creating 4 units of pollution in the area, for a total of 12 pollution units. If the government wants to reduce total pollution in the area to 6 units, it can choose between the following two methods: Available Methods to Reduce Pollution 1. The government sets pollution standards using regulation. 2. The government allocates tradable pollution permits. Each firm faces different costs, so reducing pollution is more difficult for some firms than others. The following table shows the cost each firm faces to eliminate each unit of pollution. For each firm, assume that the cost of reducing pollution to zero (that is, eliminating all 4 units of pollution) is prohibitively expensive. Firm Cost of…
The marginal private cost of mulch production is MPC = 20 + 3Q, where Q is the amount of mulch produced. The marginal benefit (both private and social) of mulch is MB = 100 – Q. In addition to the private costs faced by producers of mulch, people who walk or drive past the area where the mulch is produced also face costs because of the horrible smell of the mulch; the marginal external cost generated by the mulch is MEC = 10 + Q. How much mulch will be produced by the free market? What is the efficient quantity of mulch? Calculate the amount of deadweight loss in this market, and clearly explain what this number means. Suppose that the government realizes that the current amount of mulch produced by the free market is inefficient, and decides to correct this inefficiency by taxing the production of mulch. How large should the tax per unit of mulch be to induce the market to produce…
The marginal private cost of mulch production is MPC = 20 + 3Q, where Q is the amount of mulch produced. The marginal benefit (both private and social) of mulch is MB = 100 – Q. In addition to the private costs faced by producers of mulch, people who walk or drive past the area where the mulch is produced also face costs because of the horrible smell of the mulch; the marginal external cost generated by the mulch is MEC = 10 + Q. How much mulch will be produced by the free market? Suppose that the government realizes that the current amount of mulch produced by the free market is inefficient, and decides to correct this inefficiency by taxing the production of mulch. How large should the tax per unit of mulch be to induce the market to produce the efficient amount, and why would such a tax accomplish the goal of making the market operate efficiently?
Firms in a polluting industry can be classified in two groups: newer firms with a cleaner technology that can abate pollution at a lower marginal cost M CLA L = (1/2) aL and older firms with dirtier M CAH = aH , where ai is the level of abatement undertaken by firms of type i = L,H. The social marginal benefit of abating pollution from this particular industry is MBA = 120 - A, where A is the aggregate level of abatement in that industry: 1. What Pigouvian tax t will implement the efficient allocation (aL; aH )? Is the resulting allocation an efficient allocation? What is the government’s tax revenue? 2. Suppose that in order to avoid the costly obtention of disaggregate information about individual firms cost, the government just implements a uniform standard aui = A*/2. Is this allocation efficient? If not, what is the deadweight loss?
Firms in a polluting industry can be classified in two groups: newer firms with a cleaner technology that can abate pollution at a lower marginal cost M CLA L = (1/2) aL and older firms with dirtier M CAH = aH , where ai is the level of abatement undertaken by firms of type i = L,H. The social marginal benefit of abating pollution from this particular industry is MBA = 120 - A, where A is the aggregate level of abatement in that industry: 1. What Pigouvian tax t will implement the efficient allocation (aL; aH )? Is the resulting allocation an efficient allocation? What is the government’s tax revenue? 2. Suppose that in order to avoid the costly obtention of disaggregate information about individual firms cost, the government just implements a uniform standard aui = A*/2. Is this allocation efficient? If not, what is the deadweight loss? 3. Suppose instead that the government uniformly allocates tradable emission’s permits. What abatement allocation will prevail after the…