Principles of Microeconomics, Student Value Edition (12th Edition)
12th Edition
ISBN: 9780134069609
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 16, Problem 2.3P
(a)
To determine
Should government be involved in providing health care as health care is a public good.
(b)
To determine
Whether an unregulated market economy tends to under produce public goods.
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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?
What is the free-rider problem? Why does the free-rider problem induce the government to provide public goods? How should the government decide whether to provide a public good?
Identify the characteristics of a public good.
a. Why do public goods exist?
b. What is the problem that comes about due to public goods?
c. Which of the following are public goods: parks, police services, welfare payments to the poor, production of energy, space exploration?
d. Briefly describe how the free rider problem can be overcome.
e. Briefly explain why markets often have a difficult time producing public goods.
Chapter 16 Solutions
Principles of Microeconomics, Student Value Edition (12th Edition)
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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