When people decide to buy cars, they have to decide between fuel economy and other features. It is argued that there is a "public good" issue involved in this decision. Why might that be? How the existence of public-good characteristics affect the price of the car? Include in your answer a good definition of a public good and free riders. Be complete and use the language of economics.

When people decide to buy cars, they have to decide between fuel economy and other features. It is argued that there is a "public good" issue involved in this decision. Why might that be? How the existence of public-good characteristics affect the price of the car? Include in your answer a good definition of a public good and free riders. Be complete and use the language of economics.

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter4: Markets In Action

Section: Chapter Questions

Problem 19SQ

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When people decide to buy cars, they have to decide between fuel economy and other features. It is argued that there is a "public good" issue involved in this decision. Why might that be? How the existence of public-good characteristics affect the price of the car? Include in your answer a good definition of a public good and free riders.
There are three consumers of a public good. The demands for consumers are as follows: p1 = 50 − G, p2 = 110 − G, p3 = 150 − G, where G measures the number of units of the good and ?? the price in dollars. The marginal cost of the public good is $190. Explain why the public good may not be supplied at all because of the free-rider problem. If the public good is not supplied at all, what is the size of the deadweight loss arising from this market failure?
Considering the Human Right to Adequate Food, should “healthy” food be made available to all, free of charge, and funded by the government? Consider the nature of “public goods” and “private goods”, as well as “opportunity cost”, efficiency, equity, externalities, and markets.
Which of the following does NOT describe the characteristics of public market? I. Opportunity cost in public market is zero. II. Only public market requires one to make choice. III. Public market depends on price mechanism in allocating resources. IV. All goods and services in public market are freely provided. a.I, II and III b.I, II and IV c.I, II, III and IV d.II, III and IV
What is the economist’s definition of public goods? Why are public goods associated with market failure? How do the free rider problem and shirking contribute to this form of market failure
This is a multiple choice question, not a writing All of the below are true for public goods EXCEPT this one: Group of answer choices These are goods that many may wish to use but no one may be willing to bear the full cost of making these available. The cost of offering the good to additional users is exhorbitant and increases with additional users. There may be tendency for free riders to use the products without paying for the use, such as would hurt profits of private enterprises, if they produced these. Public goods make us better off but would not otherwise be made by the private sector in sufficient quantities.
Answer the question based on the following information for a public good. Pa and Pb are the prices that individuals A and B are willing to pay for the last unit of a public good, rather than do without it. These people are the only two members of society. Q Pa Pb 1 $ 3 $ 5 2 2 4 3 1 3 4 0 2 5 0 1 The collective willingness of this society to pay for the fourth unit of this public good is Multiple Choice $4. $1. $2. $8. $6.
Suppose there are two residents in a neighborhood, and you know both of their demand curves for a public good. What would you have to do in order to figure out what the social demand curve? a-Subtract the demand of the person with the higher valuation of the public good from the demand of the person with the lower valuation of the public good b-Add their demand curves together c-Multiply the two demand curves together d-Subtract the demand of the person with the lower valuation of the public good from the demand of the person with the higher valuation of the public good
There are various approaches to deal with ecological illness, and we can all place them on a spectrum between libertarianism (no government intervention, free and atomic individuals can decide what is best for their own interests) vs. benevolent authoritarianism (government should intervene and take necessary steps to save the environment). Where do you stand on this spectrum?
Suppose there are two residents in a neighborhood, and you know both of their demand curves for a public good. What would you have to do in order to figure out what the social demand curve? A.Multiply the two demand curves together B.Add their demand curves together C.Subtract the demand of the person with the lower valuation of the public good from the demand of the person with the higher valuation of the public good D.Subtract the demand of the person with the higher valuation of the public good from the demand of the person with the lower valuation of the public good
Which of the following statements is false regarding a public good? Multiple Choice The marginal cost of a public good is zero. A scholarship is an example of a public good. A public good is non-rival. A public good is non-excludable.
What distinguishes a public good from a private good? What kind of market failure is addressed when goods are publicly supplied? Why do some private goods like elementary education or public health services get supplied as public goods? In your understanding of evidence from India or other countries on educational outcomes of public schools or delivery of public health services, is public spending on education or public health a good idea, if not, why not?