Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Chapter 14, Problem 15SQ
To determine
The achievement of efficiency in private sector.
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Question 15
All of the following except which one explain why governments may fail to enhance economic efficiency?
a
There is limited information relating to the social benefits and costs.
b
It is difficult measuring social benefits and costs.
c
It is easier to eliminate programs than to add programs.
d
Efficient programs may be politically untenable.
What is a market-failure rationale for the government investing in transportation and infrastructure, for example roads, highways, bridges and tunnels?
a. Government policy acts to correct for the under-provision of private goods by the private, unregulated market.
b. Government policy acts to correct for the over-provision of private goods by the private, unregulated market.
c. Government policy acts to correct for the over-provision of public goods by the private, unregulated market.
d. Government policy acts to correct for the under-provision of public goods by the private, unregulated market.
What is a market-failure rationale for the government investing in education and training programs?
a. Education likelyresults in a negative externality in production, so government investment corrects for the under-provision by private, unregulated markets.
b. Education likely results in a positive externality in consumption, so government investment corrects for the under-provision by private, unregulated markets.
c. Education likely results in a positive externality in production, so government investment corrects for the over-provision by private, unregulated markets.
d. Education likely results in a negative externality in consumption, so government investment corrects for the over-provision by private, unregulated markets.
Chapter 14 Solutions
Economics For Today
Ch. 14.2 - Prob. 1.1GECh. 14.2 - Prob. 1.2GECh. 14.2 - Prob. 1.3GECh. 14.2 - Prob. 2.1GECh. 14.2 - Prob. 2.2GECh. 14.2 - Prob. 2.3GECh. 14.2 - Prob. 2.4GECh. 14 - Prob. 1SQPCh. 14 - Prob. 2SQPCh. 14 - Prob. 3SQP
Ch. 14 - Prob. 4SQPCh. 14 - Prob. 5SQPCh. 14 - Prob. 6SQPCh. 14 - Prob. 7SQPCh. 14 - Prob. 8SQPCh. 14 - Prob. 9SQPCh. 14 - Prob. 10SQPCh. 14 - Prob. 11SQPCh. 14 - Prob. 12SQPCh. 14 - Prob. 13SQPCh. 14 - Prob. 14SQPCh. 14 - Prob. 15SQPCh. 14 - Prob. 16SQPCh. 14 - Prob. 1SQCh. 14 - Prob. 2SQCh. 14 - From an economic viewpoint, the optimal amount of...Ch. 14 - Prob. 4SQCh. 14 - Prob. 5SQCh. 14 - Prob. 6SQCh. 14 - Prob. 7SQCh. 14 - Prob. 8SQCh. 14 - Prob. 9SQCh. 14 - Prob. 10SQCh. 14 - Prob. 11SQCh. 14 - Prob. 12SQCh. 14 - Prob. 13SQCh. 14 - Prob. 14SQCh. 14 - Prob. 15SQCh. 14 - Prob. 16SQCh. 14 - Prob. 17SQCh. 14 - Prob. 18SQCh. 14 - Prob. 19SQCh. 14 - Prob. 20SQ
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Similar questions
When should a private good be produced from an efficiency standpoint?
a-When the sum of all of society’s marginal benefit exceeds the marginal cost
b-When the marginal benefit from consumption exceeds the marginal cost
c-When the marginal cost exceeds the marginal benefit from consumption
d-When the marginal cost exceeds the sum of all of society’s marginal benefit
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Knowledge creates positive externality; therefore, governments should intervene in the education sector. What is the intervention action of governments for efficiency to gain from external benefits? Please explain each of these interventions with a clear example for each.
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Question Five
What are public goods?
What is a free rider problem?
State and explain the characteristic of public goods
State and explain the importance of Public Finance
Explain any four principle causes of public expenditure growth
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Explain the concepts given below by exemplifying them.a) Public Choice?b) Economic Efficiency?c) Pareto Optimality?d) Market Failure ?e) Government Failure?
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For which of the following problems can well-designed public policy enhance economic efficiency?
both externalities and market power
externalities, but not market power
market power, but not externalities
neither externalities nor market power
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61) The Coase Theorem points out that externality problems can be eliminated if the number of parties involved is small and if property rights
A) are granted solely to consumers.
B) are granted solely to producers.
C) are eliminated.
D) are granted to either consumers or producers and transactions costs are low.
62) The Coase Theorem says that which of the following is necessary to lead to an efficient use of resources?
A) presence of transaction costs
B) existence of property rights
C) government intervention
D) All of the above answers are correct.
63) According to the Coase theorem, which of the following are necessary for the efficient levels of pollution to be achieved?
I.Property rights are defined.
II.Transactions costs are low.
A) I only
B) II only
C) both I and II
D) neither I nor II
64) Which condition(s) must exist for the Coase Theorem to hold?
I.Property rights must exist.
II.Transactions costs must be measurable.
III.A small…
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Q3. The following table shows the marginal benefits of a pure public good that can be enjoyed by four people in a community, Athirah, Dewi, Chin, and John.
Number of Public Good
Marginal Benefit:
1
2
3
4
Athirah
175
150
125
100
Dewi
150
125
100
75
Chin
125
100
75
50
John
100
75
50
25
What is the total cost of the public good that needs to be financed if the marginal social cost is RM350? Explain your answer.
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Which of the following is NOT a feature of a public good?
a. Non-excludability
b. Non-rivalry
c. Always provided by the free market
d. Generally provided by the government
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Assuming the government pays higher cost of production by paying wages that are higher than the private sector rates, analyse the effect of the change in the costs of producing public good caused by government inefficiency?
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How does the problem of limited and bundled choice in the public sector relate to economic efficiency? Why are public bureaucracies possibly less efficient than business firms?
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Suppose Fischer Pond is a common-property resource—anyone can fish without having to pay for access. Locke Lake is privately owned—people who want to fish must purchase one of a limited number of permits from the lake's owner each season. According to the incentives that private ownership creates, which of the following would you expect to happen?
Check all that apply.
The owner of Locke Lake is likely to keep the lake clean and unpolluted.
The owner of Locke Lake is likely to limit the number of fishing permits in order to maintain a plentiful stock of fish.
Fischer Pond is less likely to experience a dwindling stock of fish each season.
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A strategy for consumer 1 in the private provision of public goods model is:
A quantity of public good purchases that maximises 1’s utility for each level of public good purchases of consumer 2.
A quantity of public good purchases.
A quantity of public good purchases for each level of public good purchases of consumer 2.
The total quantity of public goods consumed by consumer 1.
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