With the coronavirus vaccine, your decision to get vaccinated provides not just a benefit to yourself in protecting you from the disease, it also provides substantial benefits to others who you are likely to encounter during the course of your daily activities, protecting them from infection as well. This is an example of O Public good O Negative externality O Positive externality O Common ownership O Asymmetric information
Q: 5. Consider a variation of the Taylor rule: r = (0.25)rTAYLOR + (0.75)rt-1, where r is the real…
A: The cornerstones of the Taylor rule are as follows: Compared to actual inflation rates, the desired…
Q: om for the four Juanita's Performance Pizza is a small restaurant in Dallas that sells gluten-free…
A: The measure that depicts the expenses that are incurred by the firm for carrying out day-to-day…
Q: Economics What are the primary characteristics of oligopoly. Also, there is one characteristic that…
A: Oligopoly is a sort of market structure that is described in economics as a type of market where two…
Q: Use the following table to calculate the price elasticity of supply for computers. Quantity Supplied…
A: Price elasticity of supply is measurement of the responsiveness to the supply of a good or service…
Q: 22. Monopolistic competitive firms are productively inefficient because production occurs where: A)…
A: In monopolistic competitive market there are large number of firms selling differentiated goods.
Q: Confetti Bakery sells bread, cake, and other baked goods. After analyzing their production and…
A: For production of goods and services, firms hire factors of production from the household sector in…
Q: The seasonally adjusted data below depict the performance of the U.S. economy in four quarters of…
A: real gdp is calculated at base price level whereas nominal gdp is calculate dat current year price…
Q: Why should sunk costs be ignored for decision making? Give an example of why it makes sense to…
A: Sunk cost are those cost which have been caused and the sum spent can not be recovered.since the…
Q: The wage elasticity of labor supply can be calculated using the following approach
A: Elasticity of supply finds the responsiveness to the supply of a good or service after a change of…
Q: s -2.5, the elasticity of demand for business computers is -.90, and the elasticity of supply or…
A: At the point when supply and demand are out of equilibrium, making a market inefficiency, a…
Q: Suppose the production function for widgets is given by q=kl-0.8k².0.21² where q represents the…
A: "Production function, in economics depicts the relationship between factor inputs and the amount of…
Q: 1. Town A suffers from pollution by two firms which we will call Firm 1 and Firm 2. The two emit 100…
A: There are two firms : Firm 1 & Firm 2 , Firm 1 emission = 60 Firm 2 emission = 40 Government…
Q: 1. What measures can the poorer countries take to accelerate their growth to bring their standards…
A: Poor countries are poor since they don't bring anything to the table for the worldwide market.…
Q: James purchases a $20,000 6-month certificate of deposit. Is this counted in M1 only, M2 only, M1…
A: Answer: Certificate of deposits: it refers to the time deposit. It is a financial instrument that is…
Q: What processes and steps can be took to compete with an MNC by a domestic rival company so that they…
A: Meaning of Market: The term market refers to the situation under which the producers or the…
Q: Calculate the benefit cost ratio for the following three alternatives. Each alternative has a 10-…
A: A cost-benefit analysis is a method that is the most common way of contrasting the anticipated cost…
Q: Exhibit: Demand and Price Elasticity 2 Price 58 is price inelastic s price elastic has a slope of…
A:
Q: A clothing accessory company produces scarves and earrings. Below are the production possibility…
A: Given Scarves (000 units) Earrings (000 units) 10 0 9 50 8 90 7 120 6 145 5 165 4…
Q: Which of the following statements is TRUE? Question 7 options: Floating exchange rates are…
A: Exchange rate: It refers to the rate at which the economies are exchanging are one another. The…
Q: How would the price of the bond be affected by changing the going market interest rate? (Hint:…
A: Interest rate Interest rates are set by the interaction between the supply and demand for money in…
Q: The benefit cost ratio for a pest control program proposed by the Department of Agrarian Reform is…
A: in this situation, the benefit cost ratio for a pest control program proposed by the Department of…
Q: At very low price levels there is a low level of production. Since increases in price levels…
A: Production refers to the process of converting and assembling raw materials into finished goods that…
Q: 1) What factors convince you to place your money with a particular organization? What specific…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: part from its economic strategies, Coca Cola Amatil has identified three main CSR objectives:…
A: Social Corporate Responsibility: Corporate Social Responsibility is an administration idea by which…
Q: Keynesia: Government expenditure 400 Exports 250 Autonomous imports 50 Autonomous consumption…
A:
Q: According to the Heckscher - Ohlin model, OA. a country gains from trade if its exports have a high…
A: Different types of ideas used to explain international trade are simply referred to as trade…
Q: A. Suppose that the economy is characterized by the following behavioral equations: C = 160+ 0.6 Yd…
A:
Q: Suppose that a researcher collects data on houses that have sold in a particular neighborhood over…
A: Standard errors are reported in brackets. Coefficient is significant if null hypothesis is rejected.…
Q: ₁(x11, X12) = x11×12, W₁ = (10,0); u₂(x21,×₂2) = X21+x22, W₂ = (5,10) Individual 1's consumption…
A: Given u1(x11,x12)=x11x12 ... (1) and u2(x21,x22)=x21+x22 .... (2) Equations 1 and…
Q: The marginal product of labor for a firm is given by: MPL = 188 - 4H, where H is the number of hours…
A:
Q: Suppose the revenue for a certain company for the years 2010–2014 is shown in the following table.…
A: The consumer price index (CPI) measures changes after some time in the general degree of prices of…
Q: treaming Company streams TV shows to subscribers in the US and Canada. Demand is Qus= 50- (1/3)Pus…
A: Introduction,
Q: True/False with explanation: Monopolist will never operate in the inelastic portion of the demand…
A: A Monopolist is a market form whereby there is only a single seller prevailing in the market. The…
Q: Price and cost (dollars per mug) 18 16 6 4 2 0 5 10 15 20 25 30 35 40 45 50 Quantity (mugs per day)…
A: When a perfectly competitive firm's market price falls below its average variable cost at the output…
Q: How does derived demand apply to the demand for passenger-jet engines? What are the implications for…
A: In economics, derived demand is the demand for a good or service that develops as a result of the…
Q: 7. The demand and supply functions for product x are given, respectively, by the equations: P = 83.6…
A: Answer 7. According to the question, it is given that : Demand Function : P = 83.6 - 0.037 Q…
Q: Problem 2 See the Table below. Wheat Vietnam 25 Mexico 40 Rice 80 20 Answer the following questions:…
A: The number given in table against the two countries and crops represent the labour hours required…
Q: boots is $95, so you should start your MC curve by placing an orange square at (0.5, 95).) Note:…
A: Given Quantity and Total cost where, MC = change in TC / Change in Qty FC = 60 remains fixed at…
Q: Describe how global aging and declining population affect economic growth, living standards, and the…
A: The world's population is getting older at an unprecedented rate. With a fast diminishing…
Q: 2. Why? "Corporate bond yield and Treasury yield always move in the same direction in any economic…
A: "Corporate bond yield and Treasury yield always move in the same direction in any economic…
Q: What is the value of total gross investment?
A: Total investment is an important component in the calculation of gross domestic product. Total gross…
Q: 2. Suppose a firm's conditional factor demand functions (the inputs needed to produce q at minimum…
A: The firm's conditional factor demand function are given below: L = L(w,q,r) = 4rqw K = K(w,q,r) =…
Q: E. Table below shows the demand schedules for coffee for Ahmed and Ibrahim and the supply schedules…
A: Equilibrium is achieved where market demand equals market supply
Q: what is the present value of a loan when a monthly payment of ₱3,250 is needed to extinguish for 3.5…
A: Present Value gives the value of a series of cash flows when it has been discounted with the current…
Q: 2. A refrigerator manufacturer is planning capacity expansions. They have determined that their…
A: Capacity Cost are in the form : F(y) = kya For above example , a = 0.62 & k = 0.0107 Demand is…
Q: Duke Construction just purchased a new track hoe attachment costing $12,500. The CFO, John, expects…
A: The cost of the new track hoe attachment = $12500 Salvage value = $4000 Maintenance cost first year…
Q: live quantity of flowers is computed as (Q,+Q)/(Q+Q), while the relative price med P,/P places an…
A: Equilibrium is the point in which market supply and demand equate each other, and as a result prices…
Q: AVERAGE TOTAL COST (Dollars per bike) 640 560 480 400 320 240 160 80 0 0 100 200 300 400 QUANTITY…
A: Short-run is such a period in which at least one of the factors of production is fixed whereas the…
Q: A person deposits a sum of $20,000 at the interest rate of 18% compounded annually for 10 years.…
A: Given information: Deposit amount = $20000 Interest rate = 18% Time period = 10 years
Q: Question 3 If a machine cost 10,000 and last for 15 years, at which time flows with a 20 % annual…
A: Comparable yearly expense (EAC) is the yearly expense of purchasing, working, and keeping a resource…
2
Step by step
Solved in 3 steps
- The market inverse supply curve for amoxicillin, an antibiotic with lots of generics, isrepresented by the equation P = 3 + 0.0006QS. The market demand curve is represented byQD = 187,500 − 625P.It is well known that antibiotic use generates negative externalities. How might thegovernment restrict the use of antibiotics? Show this on a demand-supply graph. Thendiscuss a potential unintended consequence of the government’s intervention.Consider two ways to protect your car from theft.The Club (a steering wheel lock) makes it difficult fora car thief to take your car. Lojack (a tracking system)makes it easier for the police to catch the car thiefwho has stolen it. Which of these methods confersa negative externality on other car owners? Whichconfers a positive externality? Do you think there areany policy implications of your analysis?Consider an infectious disease such as the flu which is spread primarily through virus particles in aerosolized respiratory droplets of already infected people. a In the midst of an infectious disease epidemic of this sort, is it privately rational for people to limit their exposure to other people, perhaps by staying home from work or not going to school? b An infected person who goes out into public areas and does not take precautions to contain their respiratory emissions clearly poses a negative externality on those around them. Does an uninfected person going out into public areas also pose a negative externality? c For a particularly severe disease outbreak of this sort, one possible government response is to exaggerate to the public both the harm that might arise from contracting the disease and the likelihood of contracting the disease. In what ways might such a strategy reduce the harm to the public from the disease epidemic? In what ways might such a strategy increase the…
- please answer all. 5. 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 Eliminating the... First Unit of Pollution Second Unit…. 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 surplusBased on what you saw in the videos about internalizing externalities, do you think that the "leaving it to the market" approach (i.e., market-based solutions, such as government-imposed incentives toward renewable energy initiatives) is sufficient to transition away from fossil fuels and a linear economy as we try to minimize the already visible impacts of climate change? Or, do you think that a command and control approach is warranted in this case? Explain. Note: I am not judging your position, but am looking at how you support your position given the fundamentals of command and control vs. market-based solutions given our current climate crisis.
- 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…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.Assuming no transaction costs, which legal rule best harnesses private information to deal with externalities? A. A liability rule B. A property rule C. An inalienability rule D. Criminalization
- Consider a factory, located in the middle of nowhere, producing a nasty smell. As long as no one is around toexperience the unpleasant odor, are any externalities produced? Suppose that there was family next door to the smelly factory. Do we now have an externalities problem?Suppose that the family clearly possesses the right to a pleasant-smelling environment. Does this mean thatthe factory will be required to stop producing the bad smell? What can be a private solution to this problem?Jimi loves turning up his electric guitar amp all theway, but his next-door neighbor hates listening tohim. How might Jimi and his neighbor reach a private solution to their problem? Describe potentialproblems that might make it hard for a privatesolution to occurUnder some conditions, command-and-control pollution standards could be just as good as a cap-and-trade program at bringing about a cost-effective allocation of total abatement responsibility across firms. Furthermore, the regulator could save the cost of running a cap-and-trade program. When would this most likely be the case? a.) If firms have very different technologies, are varying sizes, and there is a mix of older and newer plants, so it is safe to assume that the firms probably have very different marginal abatement cost curves. b.) If all firms have the same types of technologies, are about the same size, and have been in production for approximately the same length of time, so it is safe to assume that each firm’s abatement costs are similar, and the regulator can issue a one-size-fits-all standard. c.) If the regulator gathers detailed information about the technologies employed by every firm so it can figure out each firm’s marginal abatement cost curve. The…