Principles Of Economics, Student Value Edition
12th Edition
ISBN: 9780134079288
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: Prentice Hall
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Question
Chapter 16, Problem 2.5P
(a)
To determine
Is patent system is good thing or bad thing.
(b)
To determine
Is government involvement in scientific research is good thing or bad thing.
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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?
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Which of the following arguments best describes why the majority of economists would disagree with their statement? Tradable pollution permits in a free market is typically more efficient than government regulation. A corrective tax would result in a more efficient outcome than either tradable permits or government regulation would. The environment is so important that it should be protected as much as possible, regardless of the cost. Clean air is a fundamental right, and government regulation will allow too much pollution.
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Chapter 16 Solutions
Principles Of Economics, Student Value Edition
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