85. All of the following would be government solutions to externality problems EXCEPT: a.public sector charities. b.taxes and subsidies. C. command and control. d.tradable allowances. 86. Control of the media does not enable special interest groups to control the government for their own ends. a. True b.False 87. Studying politics doesn't pay because the outcome of any election: a.is mostly determined by what other people do, not by what you do. b.is mostly determined by what you do, not by what other people do. c. is always inconsistent with the expectation. d.can be manipulated by politicians.

85. All of the following would be government solutions to externality problems EXCEPT: a.public sector charities. b.taxes and subsidies. C. command and control. d.tradable allowances. 86. Control of the media does not enable special interest groups to control the government for their own ends. a. True b.False 87. Studying politics doesn't pay because the outcome of any election: a.is mostly determined by what other people do, not by what you do. b.is mostly determined by what you do, not by what other people do. c. is always inconsistent with the expectation. d.can be manipulated by politicians.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose California adopts environmental rules that permit manufacturers to emit more pollutants into the air, which affects air quality in Nevada and other neighboring states. This is an example of a/an_____________________. a. Intergovernmental transfer b. Coordination problem c. Optimal response d. Positive externality e. Negative externality
How can the tragedy of the commons be averted? a. The government can implement a price floor. b. Property rights can be assigned. c. The government can implement a cap and trade policy. d. The parties involved can engage in public bargaining.
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Lucia is waiting in line to receive a free t-shirt at a charity event. Because the shirts are free, there are many people in line, and a long wait time is expected. Consider the following sentence: By waiting in line for the shirt Lucia will miss an appointment to tutor an economics student, for which she would have been paid $30. Which basic concept of individual choice does this sentence best illustrate? A. Externalities are a shortcoming of the market. B. Many decisions are made on the margin. C. People usually exploit opportunities to make themselves better off. D. Opportunity costs and money costs (price) are related but are not always exactly the same.
Question 22 The benefit principle states that_ a. people who benefit from the rule of law should pay taxes b. people who benefit from Social Security should voter for it d. people who benefit from a government activity should be those who pay for it
What is a market-failure rationale for the government investing in education and training programs? a. Education likelyresults in a negative externality in production, so government investment corrects for the under-provision by private, unregulated markets. b. Education likely results in a positive externality in consumption, so government investment corrects for the under-provision by private, unregulated markets. c. Education likely results in a positive externality in production, so government investment corrects for the over-provision by private, unregulated markets. d. Education likely results in a negative externality in consumption, so government investment corrects for the over-provision by private, unregulated markets.
Do you believe higher education provides our economy with a positive externality? Why or why not? Do you believe the steps that the federal government takes to encourage the socially optimal amount of higher education be produced/consumed is appropriate? Too much? Too little? Why? (Use appropriate economic theory to support your position.) 2. Explain why according to the theory of rational ignorance, an individual will decide not to participate in the election process (vote).
2. What Role for Government? In Naked Economics, Chapter 3 (in eReserves), Wheelan describes a number of ways in which the "government is your friend" in a well- functioning society and economy. List and explain two ways that, in your everyday lives, there is a need for an effective government role in an economy. Explain how this government role does or does not solve a market failure such as an externality.
1. According to Robert Reich, what is the goal of a business? a. Preserving the environment b. Creating and adhering to corporate social responsibility guidelines c. Generating profit 2. True or false, Simpson argues global corporations enhance economic freedom and their power causes conflicts of interest and social problems. a. True b. False 3. Which of the following is a rule that the Macdonald and Williams-Jones argue need to be applied if a company is going to use genetic testing or screening on their employees? a. It must be mandatory b. The employee must pay out of pocket for the procedure c. The employee cannot be terminated due to the test results 4. According to Pava, why should businesses be required to adhere to corporate social responsibility standards? a. They are involved in more than just making money b. They effect the environment c. They effect the lives of their employees d. All the above 5. Why does Palmer reject government intervention in controlling the timber…
#10. When traffic gets congested, there are negative externalities. For big cities, this creates inefficiency. Could the Coase Theorem fix this problem? a. Yes, it can. The government could assign property rights: X number of drivers can be on the road during peak hours. Everyone could then negotiate an efficient solution. b. No, because bargaining costs are too high. c. No, because the government doesn't have enough information to solve the problem. d. Both b and c.