EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 8220103632225
Author: PARKIN
Publisher: PEARSON
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Chapter 3, Problem 5SPPA
To determine
Changes in
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Imagine that a town of 200 people is trying to decide whether to pay for mosquito control. The town has surveyed their citizens
and they each say they value mosquito control at $75. Mosquito control only costs $2,500 so the town goes ahead and pays for the
service. When the town asks for donations to pay for the mosquito control, they only receive $1,000. What does this result show?
Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.
a
The town's citizens were free riders.
b
The mosquito control suffered from the tragedy of commons.
The mosquito control cost must have been greater than its economic benefit.
d.
The town's survey must have overestimated the value of mosquito control.
Presently, there is a major conference in Glasgow Scotland regarding climate change, neither the first nor the last attempt at this. Reactions range from hopeful optimism to downright cynicism. To be sure climate change is a global issue. There are many causes, from the results of economic activity to natural forces in the earth's core we can do little about. How do you feel about the drive to control climate change. What have you done to "go green", or are you one of the skeptics?
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- A local school administrator observes an increase in the number of flu cases in the public schools over the last two years. She is concerned that some families cannot afford flu vaccine and are therefore not having children vaccinated. She is also concerned that the failure to vaccinate some children is putting other children at risk, so she proposes that the state subsidize vaccines to increase coverage rates. a. Determine whether the failure to vaccinate some children is an external benefit or an external cost. If an external cost is present, move point A and point B to show the marginal social cost curve. If an external benefit is present, move point A and point B to show the marginal social benefit curve. Place point C at the equilibrium outcome. Place point D at the socially optimal outcome. Flu vaccines A B D Supply (marginal private cost) Pricearrow_forwardThe members of a neighborhood community have been having a problem with mosquitoes. Although people have been complaining, only a few residents have had their lawns professionally sprayed for mosquitoes. The homeowner's association decides to use some of the association dues to provide vouchers to reduce the costs for residents who would like to have their properties sprayed. Match each statement about the effects of the voucher policy to the correct graph for the mosquito-spraying market. Click on the graphs to enlarge. Drag each item on the left to its matching item on the right. The Dinternal curve will shift toward the Dsocial curve. Chemicals from the mosquito spray may leach into the groundwater. The deadweight loss of mosquito spraying will be reduced or eliminated. Neighborhood visitors will receive fewer mosquito bites. + Price Price Esocial optimum Q -Ey-market equilibrium Da Quantityarrow_forwardTyped plz and asap please give me detailed solution and all Also take care of plagiarism alsoarrow_forward
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