Economics (7th Edition) (What's New in Economics)
Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134739090
Author: Hubbard
Publisher: PEARSON
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Chapter 5, Problem 5.4.7PA
To determine

The tragedy of the commons.

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Whenever we think of a resource, say forest, the value that immediately comes to our mind is the utility that we drive directly from the resource, such as timber. However as environmental scientist, we know that a forest has other values other than direct use value of economic value of a resource. Enumerate the types of economic values and discuss the various uses or utility of a protected coral reef area like the Tubbataha reef or protected forest like Mt. Makiling or Mt. Apo (Discuss only one).
One million plastic bottles being sold every minute is a pretty stark number showing why this is a problem, particularly when you add it to the fact that less than half are collected for recycling. Plastic has many desirable properties making it a ubiquitous material. Plastics create millions of products and on top of that millions of jobs. The plastic industry is a huge part of the world economy yet its efficiency and negative externalities are often overlooked.   You are a student of economics and you were recentlyasked to make a virtual presentation at a conference based on the article ‘Drink Bottles’.   REQUIED: 1. ‘Drink Bottles’ presents a case of market failure. Explain what is meant by market failure. Be sure to outline the sources of market failure.
Suppose the Environmental Protection Agency (EPA) wants to mandate that all methane emissions must be reduced to zero in order to alleviate global warming in the United States. Which of the following describes why most economists would disagree with this policy?  Reducing methane emissions is desirable, but whatever levels of pollution firms decide to emit privately are already efficient.    Society would not benefit from lower air pollution.    The environment isn’t worth protecting.    The opportunity cost of zero pollution is much higher than its benefit.
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