Microeconomics, Student Value Edition (2nd Edition)
2nd Edition
ISBN: 9780134461786
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 7P
(a)
To determine
Cost and benefit of water use during a drought and causation for the failure of the order to reduce the use of water in
(b)
To determine
Incentives to make individuals save water.
(c)
To determine
Causation of relatively lesser water consumption reduction by wealthier homeowners.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Suppose the Environmental Protection Agency (EPA) wants to mandate that all methane emissions must be reduced to zero in order to alleviate global warming in the United States.
Which of the following describes why most economists would disagree with this policy?
Reducing methane emissions is desirable, but whatever levels of pollution firms decide to emit privately are already efficient.
Society would not benefit from lower air pollution.
The environment isn’t worth protecting.
The opportunity cost of zero pollution is much higher than its benefit.
The government wants to increase ecotourism by using farmland to establish special habitats for endangered species. The government will pay farmers half the revenue per acre of habitat that farmers would have received if they had grown wheat on that land. The average wheat yield per acre is 6363 bushels. The average price of a bushel of wheat is $3.76$3.76.How much would the government pay a farmer who wants to establish a habitat on 44 acres of land? Enter your answer in the box below and round to two decimal places if necessary.
A local school administrator is concerned that flu outbreaks are putting children at risk, so she proposes that the state should subsidize flu shots in order to increase coverage rates.
-Are the administrator’s concerns valid—are too few children getting flu shots—and will a subsidy help?
-The school nurse suggests publishing a list of which kids did not get a flu shot, in the hope that public shaming will lead people to vaccinate their children. Is this strategy likely to work?
Chapter 1 Solutions
Microeconomics, Student Value Edition (2nd Edition)
Knowledge Booster
Similar questions
- A century ago this month, the Addison Act was passed in the UK placing a duty on local authorities to take up the gauntlet of providing 500,000 new homes within three years. Typically, housing had been built by private developers with an eye on turning a profit, but the Tudor Walters Report recommended that new homes were not to be cramped terraced houses packed into available space, but rather open and airy, low-density garden suburbs. The report mandated several designs and layouts of generous proportions, with gardens attached to all. In the last decade the number of homes built by both public and private providers combined has averaged only a paltry 159,000 each year. Most new homes are built by about a dozen big housebuilding firms, such names as Persimmon, Bellway, Barratt and Taylor Wimpey. Chasing financial returns tends to lead to a short-term view of shareholdings, seeking immediate gain over longevity and loyalty. The nine key housebuilding firms had a combined turnover of…arrow_forwardA century ago this month, the Addison Act was passed in the UK placing a duty on local authorities to take up the gauntlet of providing 500,000 new homes within three years. Typically, housing had been built by private developers with an eye on turning a profit, but the Tudor Walters Report recommended that new homes were not to be cramped terraced houses packed into available space, but rather open and airy, low-density garden suburbs. The report mandated several designs and layouts of generous proportions, with gardens attached to all. In the last decade the number of homes built by both public and private providers combined has averaged only a paltry 159,000 each year. Most new homes are built by about a dozen big housebuilding firms, such names as Persimmon, Bellway, Barratt and Taylor Wimpey. Chasing financial returns tends to lead to a short-term view of shareholdings, seeking immediate gain over longevity and loyalty. The nine key housebuilding firms had a combined turnover of…arrow_forwardA century ago this month, the Addison Act was passed in the UK placing a duty on local authorities to take up the gauntlet of providing 500,000 new homes within three years. Typically, housing had been built by private developers with an eye on turning a profit, but the Tudor Walters Report recommended that new homes were not to be cramped terraced houses packed into available space, but rather open and airy, low-density garden suburbs. The report mandated several designs and layouts of generous proportions, with gardens attached to all. In the last decade the number of homes built by both public and private providers combined has averaged only a paltry 159,000 each year. Most new homes are built by about a dozen big housebuilding firms, such names as Persimmon, Bellway, Barratt and Taylor Wimpey. Chasing financial returns tends to lead to a short-term view of shareholdings, seeking immediate gain over longevity and loyalty. The nine key housebuilding firms had a combined turnover of…arrow_forward
- Spotify, Pandora, and iHeart Radio are some of the more popular music streaming services. These companies offer free access to music. For a small monthly fee, users can purchase premium access and listen to millions of songs on demand and ad-free. But not all artists are fans of free streaming music. Taylor Swift’s move to prevent Spotify from playing her 2016 release, 1989, for free made national headlines. When Spotify refused to restrict access to only paying customers, Swift would not allow the company to play her music for free. She is not alone. Adele, Dr. Dre, Garth Brooks, and Coldplay have all had run-ins with free streaming services. i. If music-lovers obtain music and video content via free music streaming services instead of buying it directly or paying for premium access, what would the record companies’ producer surplus be from music sales? Producer surplus for record companies would... a. be greater than if people had to pay for the music. b. depend on how…arrow_forwardThe United States government subsidizes many so-called green companies. For instance, it has given millions of dollars to solar panel companies. In the market for solar power, illustrate what the government subsidies mean.arrow_forwardExplain which of the following cases are classified as (A, B, C, or D) : (A) Negative Externality of Production or (B) Negative Externality of Consumption or (C) Positive Externality of Production or (D) Positive Externality of Consumption: Almawassi village does not have a public fire department, some homeowners purchased private fire protection services to provide a positive externality to neighboring properties, which are less at risk of the protected neighbor's fire spreading to their (unprotected) house. Wakefulness due to a neighbor listening to loud music late at night. a person smoked heavily in a public place. A farmer who uses pesticides to produce vegetables A person planted ornamental trees along Salahiddeen street Creative laboratories which try to find vaccine for COVID 19 The corporate development of some free software to benefit students A software company that creates social media programs No. 2 3 4 5 6 7 8 Answerarrow_forward
- Whenever we think of a resource, say forest, the value that immediately comes to our mind is the utility that we drive directly from the resource, such as timber. However as environmental scientist, we know that a forest has other values other than direct use value of economic value of a resource. Provide suggestions to address market failure in the above situation.arrow_forwardIf there are no externalities or market power and all markets are in equilibrium, what conclusions can we draw from this in economic theory?arrow_forwardPower stations emit sulfur dioxide as a waste product. This generates a cost to society that is not paid for by the firm; therefore, pollution is a negative externality of power production. Suppose the government wants to correct this market failure by getting firms to internalize the cost of pollution. To do this, the government can charge firms for pollution rights (the right to emit a given quantity of sulfur dioxide). The following graph shows the daily demand for pollution rights.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
Principles of Economics, 7th Edition (MindTap Cou...EconomicsISBN:9781285165875Author:N. Gregory MankiwPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning