Principles Of Microeconomics 2e
2nd Edition
ISBN: 9781680922219
Author: Timothy Taylor, Steven A Greenlaw, David Shapiro
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 13, Problem 22CTQ
Radio stations, tornado sirens, light houses, and street lights are all public goods in that all are nonrivalrous and nonexclusionary. Therefore why does the government provide tornado sirens, street lights and light houses but not radio stations (other than PBS stations)?
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Should governments subsidize recycling programs if they are run at an economic loss? What types of external costs—costs not reflected in market prices— do you think would be involved in not recycling, say, aluminum cans? Do you feel these costs justify sponsoring recycling programs even when they are not financially self-supporting? Why or why not?
Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly.
PRICE (Dollars per ton)
90
81
72
63
54
45
36
27
18
9
0
Demand
0 60 120 180 240 300 360 420 480 540 600
QUANTITY (Millions of tons)
Graph Input Tool
Daily Demand for Pollution Rights
Price
(Dollars per ton)
Quantity
Demanded
(Millions of tons)
9
540
Suppose the government has determined that the socially optimal quantity of radioactive waste is 360 million tons per day.
One way governments can charge firms for pollution rights is by imposing a per-unit tax on emissions. A tax (or price in this case) of
of radioactive waste emitted will achieve the desired level of pollution.
$36 per ton
Now suppose the U.S. government does not know the demand curve for pollution and, therefore, cannot determine the optimal tax to achieve the
desired level of pollution. Instead, it auctions off tradable pollution permits. Each permit entitles its owner to emit one ton of…
Environmental regulation was discussed for cases in which the market is unable to price risk correctly. In those cases, regulatory agencies are often tasked with evaluating risk and with administrating any regulations imposed. What does Public Choice Theory suggest might be the outcome of these bureaucratic processes in terms of the optimal level of regulation? Why?
Chapter 13 Solutions
Principles Of Microeconomics 2e
Ch. 13 - Do market demand curves reflect positive...Ch. 13 - Suppose that Sonys R. Is this a private or social...Ch. 13 - The Gizmo Company is planning to develop new...Ch. 13 - The Junkbuyers Company travels from home to home,...Ch. 13 - When residents in a neighborhood tidy it and keep...Ch. 13 - Education provides both private benefits to those...Ch. 13 - Which of the following goods or services are...Ch. 13 - Are the following goods non-rival in consumption?...Ch. 13 - In what ways (it) company investments in research...Ch. 13 - Will the demand for borrowing and investing in R&D...
Ch. 13 - Why might private markets tend to provide too few...Ch. 13 - What can government do to encourage the...Ch. 13 - What are the two key characteristics of public...Ch. 13 - Name two public goods and explain why they are...Ch. 13 - What is the free rider problem?Ch. 13 - Explain why the federal government funds national...Ch. 13 - Call a company be guaranteed all of the Social...Ch. 13 - Is it inevitable that government must become...Ch. 13 - How do public television stations, like PBS, try...Ch. 13 - Why is a football game on ESPN a quasi-public good...Ch. 13 - Provide two examples of goods/services that are...Ch. 13 - Radio stations, tornado sirens, light houses, and...Ch. 13 - HighFlyer Airlines wants to build new airplanes...Ch. 13 - Assume that the marginal private costs of a film...Ch. 13 - Becky and Sarah are sisters 1who share a room....
Additional Business Textbook Solutions
Find more solutions based on key concepts
E6-14 Using accounting vocabulary
Learning Objective 1, 2
Match the accounting terms with the corresponding d...
Horngren's Accounting (11th Edition)
What is EVA and why is it superior to other performance measures?
Principles of Accounting Volume 2
What is the best way to control labor costs? What tools are discussed in the chapter that may be used to help c...
Construction Accounting And Financial Management (4th Edition)
Which of the following is true of a maturity date? A. It must be calculated in days, not in months or years. B....
Principles of Accounting Volume 1
What is normative ethics?
Principles of Management
Fixed manufacturing overhead variance analysis (continuation of 8-23). The Sourdough Bread Company also allocat...
Horngren's Cost Accounting: A Managerial Emphasis (16th Edition)
Knowledge Booster
Similar questions
- How do public television stations, like PBS, try to overcome the free rider problem? Is public television a public good in a non-obvious way?arrow_forwardWhat are the two characteristics of public goods? Explain the significance of each for public provision as opposed to private provision. What is the free-rider problem as it relates to public goods? Is U.S. border patrol a public good or a private good? Why? How about satellite TV? Explain.arrow_forwardThe government can force you to sell your personal residence to them for fair market value (reasonable compensation) if the government is going to use your property for a public purpose. True or False?arrow_forward
- What are the two characteristics of public goods? Explain the signifificance of each for public provision as opposed to private provision. What is the free-rider problem as it relates to public goods? Is U.S. border patrol a public good or a private good? Why? How about satellite TV? Explain.arrow_forwardAre utilities a public good, by definition?arrow_forwardTrue/False Road is a type of public good.arrow_forward
- Provide a subsidy for the vaccination Government produces and operates vaccination centers, where vaccines are provided at no charge. Impose a regulation, requiring the people of the nation to get the vaccination Explain the potential unintended consequences of each one of these polices. Which policy would you enact and why?arrow_forwardWhat are the two characteristics of public goods? What is the free-rider problem as it related to public goods? Is U.S. border patrol a public good or a private good? Explain.arrow_forwardDescribe a positive or negative externality that you have observed in your life. In the example you provide, determine if the externality is positive or negative, explain why, and discuss if you feel like government intervention is present and/or needed. If so, how does (or how could?) the government increase market efficiency?arrow_forward
- Consider two ways of protecting elephants from poachers in African countries. In one approach, the government sets up enormous national parks that have sufficient habitat for elephants to thrive and forbids all local people to enter the parks or to injure either the elephants or their habitat in any way. In a second approach, the government sets up national parks and designates 10 villages around the edges of the park as official tourist centers that become places where tourists can stay and bases for guided tours inside the national park. Consider the different incentives of local villagers—who often are very poor—in each of these plans. Which plan seems more likely to help the elephant population?arrow_forwardWhat percentage of total benefits from regulations comes from EPA regulations? Most of the benefits and costs from EPA regulations are from air pollution rules resulting from the Clean Air Act and its amendments. Judging solely by these data, would you say that Clean Air Act legislation has been a success or a failure for U.S. citizens? Why?arrow_forwardWhat do laboratory experiments on the free-rider problem show? People do not contribute anything to the public good People contribute to the public good, but less than is optimal People contribute the optimal amount to the public goodarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage LearningPrinciples of Microeconomics (MindTap Course List)EconomicsISBN:9781305971493Author:N. Gregory MankiwPublisher:Cengage Learning
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning