1. Draw a diagram showing the demand (MPB) and supply (MPC) for masks in the United States. Be sure to indicate on your graph the free market equilibrium. 2. The main article states that the adjusted value of a statistical life is $55,000. Let's suppose that a person that wears a mask can reduce the risk of COVID-related death to another by some rate "x". Then, we can say that the marginal external benefit from wearing a mask is x*$55,000 (i.e., monetary savings in terms of statistical life). Illustrate the positive externality of wearing a mask on your graph (it's OK not to use numbers). Be sure to denote the efficient equilibrium. 3. In your text, a. b. explain what a positive externality is. briefly describe your diagram in words, including the difference between c. explain what government policy (policies) can be used to get people to "internalize this positive externality." d. explain why you think people are opposed to wearing

1. Draw a diagram showing the demand (MPB) and supply (MPC) for masks in the United States. Be sure to indicate on your graph the free market equilibrium. 2. The main article states that the adjusted value of a statistical life is $55,000. Let's suppose that a person that wears a mask can reduce the risk of COVID-related death to another by some rate "x". Then, we can say that the marginal external benefit from wearing a mask is x*$55,000 (i.e., monetary savings in terms of statistical life). Illustrate the positive externality of wearing a mask on your graph (it's OK not to use numbers). Be sure to denote the efficient equilibrium. 3. In your text, a. b. explain what a positive externality is. briefly describe your diagram in words, including the difference between c. explain what government policy (policies) can be used to get people to "internalize this positive externality." d. explain why you think people are opposed to wearing

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Y10
Question 3 Briefly explain why economists prefer to levy taxes on goods that generate negative externalities than on goods that do not generate externalities.
Please explain the theory of external economies
During the time of a pandemic and the existence of a highly contagious corona-virus, many scientists recommended wearing a mask. Let's assume that wearing a mask can limit the spread of the virus. Is wearing a mask an externality? Positive or negative? How about not wearing a mask? Explain your answers.
This is an end-of-chapter problem that I'm struggling with! thanks!
Suppose a positive externality is associated with college enrollment. Assume that college instruction is sold in a competitive market and that the marginal social cost of providing it increases with enrollment. Show how a corrective subsidy to college students will increase the market price of instruction. Show the net gain in well-being possible from the subsidy and the amount of tax revenue required to finance its costs on your graph. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Air pollution creates a negative externality—a cost suffered by a third party as a result of an economic transaction. A standard solution to a negative externality is a Pigouvian tax, a tax that raises the marginal private cost of pollution emissions to the level of the marginal social cost. The socially optimal quantity of pollution emissions is then determined by the intersection of the marginal private benefit, or demand, curve and the marginal social cost curve. The article notes that "putting a dollar value on the benefits of cleaner air has been difficult." Assuming this problem has been resolved, in the accompanying diagram, move the endpoints of line Smarginal social cost to show the marginal social cost curve. Then move the line labeled "Tax" to show the amount of the tax needed to limit emissions to the socially optimal level.
Some economists claim that grinding poverty and impatience impel people to strive for immediate gain, forgetting long-term environmental sustainability. You are an Environmental Economist in the Ministry of the Environment and Beautification in your local country, and you are tasked with holding a team meeting and the Chief Economist has given the following guidelines:C. indicates what approaches government / society can take to spur poor people to behave responsibly toward the environmentD add in a diagram of Kuznet curve and any diagram that shows relation to the statement and topic
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Provide a reason why the marginal damages from some emissions may be increasing with the level of emissions (like in the figure above). Suppose the unregulated level of emissions is E3. What area(s) represent the total damages from unregulated emissions? Suppose emissions levels drop from E3 to E1. What area(s) represent the total benefits from the emissions reduction from E3 to E1? What point denotes the marginal damage from emissions at E2?
An externality, which is sometimes also called a (Spillover OR Social cost) , can have a negative or a positive impact on the third party. An externality occurs when an exchange between a (Buyer and seller OR Population of two cities) has an impact on a third party who (Is not OR is) part of the exchange. For a negative externality, the private costs of an action are (Less or More) than the costs imposed on society as a whole. For a positive externality, the private benefits of an action are (Less or More) than the social benefits. An example of positive externality is (Vccination OR Good wether), whereas an example of negative externality is (Population OR Hurricane)
On graph Price 150,300,450 , 600,.................1500 Quantity 0,1,2,3,4,5...