The public smoking of cigarettes generates costs to society from second-hand smoke, therefore, cigarette production imposes costs on people who do not smoke. Moreover, private consumption of cigarettes can start apartment building and wild fires that also impose costs on non-smokers. Luckily, fire extinguishers can help prevent the spread of fires.
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Please label the graph point where the socially optimal equilibrium is
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- Mostly everyone would agree that pollution is undesirable. But cleaner environment requires higher production costs and a lower level of output. It is difficult though to measure the value on the health, environmental, and aesthetic benefits resulting from a cleaner environment. The health effects associated with the release of various chemicals into the air or water are often not fully understood. While the relationship between carbon dioxide emissions and global warming is the subject of a great deal of scientific speculation and study, precise measurements of the expected environmental damage are not yet available. It is also not easy to place a value on the aesthetic pleasure that individuals may experience knowing that the air and water surrounding them is cleaner. The energy giant Royal Dutch Shell have reached its oil production peak in 2019. Now the company’s focus now is on shifting to renewables and reducing its carbon footprint through green technologies. Did you know that…Free-market environmentalism has the potential to improve environmental outcomes A. Because it forces individuals to cooperate with each other toward a common goal B. Because it relies on already existing markets to address environmental issues, thereby reducing transaction costs C. Because it recognizes the importance of aligning incentives of stakeholders D. Because it rejects the constraints of the Coase Theorem E. Because its goal is to maximize corporate wealth, which promotes environmentalism and improves environmental outcomesWhile the traditional approach of U.S. government policies for environmental protection has had some level of success, some economists propose Group of answer choices a range of policies stipulating set limits governing pollutant emissions. stringent policies balancing industry profit goals and environmental quality. stringent policies that will return the environment to its former pristine quality. a range of more flexible, market-oriented pollution-control policies.
- The government would like to introduce a subsidy to help citizens who need their car for work and cannot afford to buy a ULEZ-compliant car. It also wants to ensure that only citizens who need to drive their car regularly use the subsidy. Instead of the two groups of citizens discussed above, we focus on one particular citizen who does not drive very often, only once a year. As a result, this citizen does not emit excessive pollution even with a car that is not ULEZ-compliant. The government would therefore prefer citizens like her not to buy a new car to avoid having to pay the subsidy unnecessarily. Once a year, the citizen derives a benefit of driving through the ULEZ area of B = 20. She can choose to either buy a new ULEZ-compliant car at a cost of C = 10, 000, denoted x = new, or stick with her old car at no cost, denoted x = old. 5 If she sticks with her old car, she has to pay a ULEZ fee of τ = 12.50 on the day that she drives. Her net benefit of driving on that day is…The government would like to introduce a subsidy to help citizens who need their car for work and cannot afford to buy a ULEZ-compliant car. It also wants to ensure that only citizens who need to drive their car regularly use the subsidy. Instead of the two groups of citizens discussed above, we focus on one particular citizen who does not drive very often, only once a year. As a result, this citizen does not emit excessive pollution even with a car that is not ULEZ-compliant. The government would therefore prefer citizens like her not to buy a new car to avoid having to pay the subsidy unnecessarily. Once a year, the citizen derives a benefit of driving through the ULEZ area of B = 20. She can choose to either buy a new ULEZ-compliant car at a cost of C = 10, 000, denoted x = new, or stick with her old car at no cost, denoted x = old.If she sticks with her old car, she has to pay a ULEZ fee of τ = 12.50 on the day that she drives. Her net benefit of driving on that day is therefore…Bush encroachment is a serious form of rangeland degradation. Discuss ecological and economic impacts of bush encroachment
- Combating emissions that lead to global warming differs from other types of pollution abatement because the process of combating global warming is _____ cumulative. long run and short run and long run and not short run and notThe town of Chefsmeadow has 100 residents. Each resident has a car. Each car produces $30 worth of pollution per person. In other words, each person in the town breathes in $30 worth of air pollution harm from one person's car as that person drives around the town. Thus each car produces $3,000 worth of air pollution overall ($30 per person x 100 people = $3,000 total harm). Because there are 100 cars, the total dollar estimate of all the pollution harm caused by all the cars is $300,000.There is a device called a "Polluteaway" that can be installed in a car and cuts its air pollution in half. The device costs $1,000 to buy and install. For the following questions, you can assume each person cares only about the air pollution they breathe and not that others have to breathe. Remember, write the number of the question in front of your answer in the text submission box. 1. What is the dollar gain or loss to one individual (let's call him Fred) in buying and installing a Polluteaway in…During the pandemic, pharmaceutical and biotech companies worked intensively to develop a vaccine for COVID-19. In the pharmaceutical and biotech industry, patents and other intellectual property are generally available to private entrepreneurs to encourage and reward this type of innovation. However, your team of economists needs to also consider the potential downsides of relying on patents and intellectual property rights to encourage innovation, particularly in the context of the COVID-19 pandemic. Provide your team with an explanation of these potential downsides and risks. (2 sentences)
- Your government, in response to the WHO’s declaration of a global pandemic, COVID-19 took the decision to close all ports of entry into the island, close schools and fast food outlets, and allow only essential services, small businesses and street vendors to remain open. Social distancing was introduced and all persons venturing out have been advised to ensure they protect themselves and observe instructions given by the government, health officials and the protective services. The Tanacos family live in Harpenstead, an agricultural and farming community comprising of just over 700 persons, many of whom have lived in the community all their lives, about an hour and 45 minutes outside of the main capital city. Most of the families are of similar economic status but there are identifiable differences in status with a few who have ‘government jobs’ and those who plant the land. The matriarch of the Tanacos household, Ornella, sells produce in the central market, located just outside…Consider this in relation to the social and economic recovery from the COVID-19 pandemic. What are the pros and cons for national security, health, and local, national, and global economies?Carbon dioxide emissions have been linked to worsening climate conditions. The following table lists some possible public policies aimed at reducing the amount of carbon dioxide in the air. For each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax. Public Policy Command-and-Control Policy Tradable Permit System Corrective Subsidy Corrective Tax The government limits total carbon-dioxide emissions by all factories to 130,000 tons per decade. Each individual factory is given the right to emit 170 tons of carbon dioxide, and factories may buy and sell these rights in a marketplace. Trees take carbon dioxide out of the air and convert it to oxygen, so the government funds a tree-planting initiative by offering $480 to any citizen who plants a tree. The government orders every factory to adopt a new technology, which reduces…