Some countries, such as Germany, have a mixture of highways with no speed limits and other roads with strict limits on vehicle velocity. How might these apparently contradictory rules relate to the externalities of high-speed driving
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Q: Consider a good with positive externalities. Relative to the outcome of an unregulated market, a…
A: Positive externalities occurs when prices are lower and quantities are higher.
Q: Explain how externalities can be solved.
A: Externality is the negative or positive spillover by the consumer or producer which affects the…
Q: If the production of a good causes a negative externality, the efficient level of output of that…
A: A negative externality is a cost borne by a third party as a result of an economic transaction. The…
Q: Define externality .
A: Economics is a social science that discusses human behavior regarding their unlimited wants in terms…
Q: What does it mean to "internalize" a negative externality? Please give an example.
A: Externality: - It is a cost/benefit, generated by the production/consumption by someone, which is…
Q: Why do economists use the word “externality” to describe third-party effects that are harmful or…
A: Externality: An externality is an expense or advantage brought about by a maker that isn't…
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: how externalities can be solved
A: A positive externality arises if, due to action by one person, benefits arise which are enjoyed by…
Q: Give four (4) economic activities that generate both positive and negative externalities
A: An externality is a positive or negative side effect of production or consumption in economics. It…
Q: Give four (4) economic activities that generate both positive and negative externalities
A: An externality is the effect of any action or economic activity like production or consumption on…
Q: Suppose an oil refinery produces air pollution that negatively affects the surrounding residents.…
A: To correct negative externality government generally impose tax per unit of output.
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: Show how tradable allowances can be usedto counteract an externality, and discuss the pros andcons…
A: The marketable emission is the measurement that is used to evaluate the level of reduced pollution…
Q: Give solutions to the externality problem.
A: The situation that depicts either a benefit or a cost being caused by a producer not received or…
Q: Provide an example of a positive and a negative externality. Explain your examples. Are there…
A: Provide an example of a positive and a negative externality. Positive externality :- Development…
Q: For the following alternatives, argue which is true, false or uncertain according to the following…
A: An externality occurs when the action of one affects the others in the society without their…
Q: Assume that there is a positive externality in the market for organic bananas. The graph below shows…
A: A cost or benefit incurred or received by a producer that is not paid for by that producer is known…
Q: The Pigouvian solution to externalities is relatively easy to calculate and implement. Choose…
A: When there is a presence of negative externality, the Pigouvian solution can be used in the market.
Q: Show how a tax or subsidy can be used to counteract an externality, anddiscuss the pros and cons of…
A: Externalities are defined as the activities that either imposes cost on the individuals or benefits…
Q: Why the presence of the product variety externality does imply that there is too little entry of new…
A: * ANSWER :- * Explanation :- A product externality leads to creation of a positive externality due…
Q: Explain why, in the absence of governmental environmental regulation, competitive markets…
A: Externality is the spillover effect to the third party other than the immediate market participant.…
Q: Which of the following situations is an example of a market with a negative externality? O A…
A: Negative externality refers to the situation when the surrounding area, that include environment and…
Q: Explain why a firm is not able to deal with an externality
A: When a third party receives benefits or costs while consuming or producing a good or service it is…
Q: All of the following are ways to cope with negative externalities blic choice ligatory controls…
A: ‘Externality’ is a cost or benefit that a person or a community receives but they have no control…
Q: When an economy and government face negative externality, describe the cause of this problem and…
A: Meaning of Externalities: The term externality refers to the situation where the cost is incurred…
Q: Can an activity generate both positive and negative externalities at the same time? Give an example…
A: Externality: It means the cost or benefit of an economic activity that is experienced by an…
Q: Which of the following is a positive externality?
A: Positive externality is the externality which impacts the society positively. It occurs when the…
Q: Both public goods and common resources involve externalities.
A: ANSWER STEP-1 (a) The externalities related to public merchandise area unit usually positive.Ex:- A…
Q: "A Pigouvian tax will be more effective in remedying a negative externality, the more elastic the…
A: The Pigouvian tax is a type of emission tax which imposed to reduce the external cost created by…
Q: List some of the ways that the problems caused by externalities can be solved without government…
A: An externality is a cost or benefit that a producer incurs or receives but does not bear or pay for.…
Q: Describe how individuals could reach a private solution to an externality,and explain why this…
A: Private solutions to externalities include moral codes, business mergers and contracts in the self…
Q: Assume that the marginal benehts to society of higher education are greater than the marginal…
A: A subsidy should be given to the consumer equal to the marginal external cost to achieve social…
Q: The coase theorem is an effective way of solving both positive and negative externality problems.…
A: An externality is an expense or profit sustained or earned by a producer that is not paid for by…
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: In the graph above, what areas comprise the negative externality damage when the market is…
A: The externality is generated when a firm or an individual engages in an activity that affects the…
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: A theme park owner agrees to let a company called Flying Aces fly a drone directly over their…
A: Private Bargaining includes moral codes, contracts, settlements among the two parties to solve the…
Q: Suppose the production of widgets causes a negative externality of $12 per unit. The current market…
A: The socially efficient level of production is the level of production at which MSC = MSB. If no…
Q: Suppose the production of widgets causes a negative externality of $12 per unit. The current market…
A: A tax is a unilateral payment that the people pays towards the government for various purposes such…
Q: Which of the following is an example of an activity generating a positive externality?
A: Positive externality means the production or consumption of goods or services create a positive…
Q: Consider the market for paper. Suppose that a paper factory dumps toxic waste into a nearby river,…
A: Quantity Private cost Social cost=Private cost +105 Demand 1 70 185 630 2 140 245 490 3 245…
Q: Why are taxes, one traditional remedy for negative externalities, less than ideal for smoking…
A: Correct option is (1).
Q: A government imposition designed to internalize a positive externality O Cap and trn
A: Externality is that cost / benefit associated with an activity that is received by a person who is…
Q: True or False • If a good is produced with no negative externalities, private cost will be equal to…
A: A negative externality / external cost are a type of spillover which imposes a cost on the third…
Q: The market for plasticans is perfectly competitive. Market Supply is given by Q=9P and Market Demand…
A: The total production process of a firm is an amalgamation of various costs, the optimum quantity…
Q: a) In many places airports are restricted from operating during certain hours of the night. Briefly…
A: Externality is the negative or positive spillover by the consumer or producer which affects the…
Q: A negative externality exists if A. there are price controls in a market. B. the marginal…
A: A negative externality is when the consumption or production of a good/service causes negative…
Q: Which of the following is an example of a negative externality?
A: Externality occurs when there is an impact of an activity (either production or consumption) on the…
Q: Imagine a market where there is a positive externality in production. The private (and social)…
A: Given: