MyLab Economics with Pearson eText -- Access Card -- for Principles of Microeconomics
17th Edition
ISBN: 9780134081168
Author: CASE, Karl E.; Fair, Ray C.; Oster, Sharon E.
Publisher: PEARSON
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Chapter 16, Problem 1.7P
[Related to the Economics in Practice on p. 329] The Economics in Practice suggests that economists often distinguish between short-run and long-run effects of policies or actions when adjusting to environmental disasters. Research a recent environmental disaster (such as the New England blizzard in early 2015, Hurricane Sandy in 2012, the 2015 earthquake in Nepal, or the BP oil spill in 2010.) Explain the major environmental impact the disaster had on the affected area, how long you think it will take for the area to recover from the disaster, and why you believe the adjustment to the disaster will take either a relatively short or long time.
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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.
Give typing answer with explanation and conclusion
One advantage of an emissions tax over a cap-and-trade system is that
a. permit markets can have transactions costs that taxes do not.
b. taxes put a price on pollution, but cap-and-trade systems do not.
c. once a cap-and-trade system is in place, there is no way for the government to adjust the price of permits.
d. taxes are always popular.
Suppose that a small company is thinking of putting plants in their lobby for employees to view and enjoy. Since the plants are to be viewed by employees, the plants are non-excludable (it is infeasible to move a plant each time a specific individual walks by) and non-rival in consumption (if one worker looks at the plant, it does not prevent another from doing so as well).
The company employs three workers: Robin, Alex, and Sharon. The company is thinking about buying up to three plants, and wants to know how much workers would enjoy each plant. For Robin, the first plant has a benefit of $47 per day, the second plant has a benefit of $37 per day, and the third plant has a benefit of $13 per day.
For Alex, the first plant has a benefit of $41 per day, the second has a benefit of $28 per day, and the third has a benefit of $6 per day.
For Sharon, the first plant has a benefit of $31 per day, the second has a benefit of $19 per day, and the third has a benefit of $2 per day.
Given that…
Chapter 16 Solutions
MyLab Economics with Pearson eText -- Access Card -- for Principles of Microeconomics
Ch. 16 - Prob. 1.1PCh. 16 - Prob. 1.2PCh. 16 - Prob. 1.3PCh. 16 - A paper factory dumps polluting chemicals into the...Ch. 16 - Prob. 1.6PCh. 16 - [Related to the Economics in Practice on p. 329]...Ch. 16 - Prob. 1.8PCh. 16 - Prob. 1.9PCh. 16 - Two firms, Vesuvius and Etna, are each emitting 9...Ch. 16 - Prob. 1.11P
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