Chapter 16, Problem 3DQ

Considering the Human Right to Adequate Food, should “healthy” food be made available to all, free of charge, and funded by the government? Consider the nature of “public goods” and “private goods”, as well as “opportunity cost”, efficiency, equity, externalities, and markets.

Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. Soybeans are produced and sold in a perfectly competitive market. The fertilizers used in soybean production generate a negative externality by seeping liquid contaminants into local rivers. (b) Assume the government sets a binding price floor such that the quantity demanded in the market is between QS and QC. (i) What will happen to the quantity produced? (ii) Will the price floor reduce the deadweight loss? Explain.

Marketable permits work best when..:   A. They are mandated by the federal government.   B. Four or five thousand parties are interested in trading.   C . A few dozen or a few hundred parties are highly interested in trading.   D. Five firms are polluting and are willing to trade pollution permits.

Describe aspects of environmental economics and ecological economics

‘Economists have no choice but to look for various techniques to directly and indirectly elicit willingness to pay for environmental assets.’ Explain this statement further in agreement with it.

Aquaculture is the growing of fish, shrimp, and other seafood in enclosed cages or ponds. The cages and ponds not only keep the seafood from swimming away but also provide aquaculturists with strong property rights over their animals. Does this provide a good incentive for low-cost production as compared with fishing in the open seas where there are few if any property rights?

Rising prices for a natural resource stimulatea. the development of complements for the resource.b. the development of substitutes for the resource.c. the development of externalities from the resource.d. All of the above are correct.

Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to “Calculate,” you must show how you arrived at your final answer. Soybeans are produced and sold in a perfectly competitive market. The fertilizers used in soybean production generate a negative externality by seeping liquid contaminants into local rivers. (c) Assume instead of a price floor, the government decides to impose a lump-sum tax. What will happen to the socially optimal quantity? Explain.

Explain key ideas of ecological economics.