A government decides that product X is a demerit good and product Y is a public good. Which policy measures is it likely to adopt in relation to the two products? Pick a,b,c, or d a. X- subsidize & Y- impose a maximum price b. X- directly provide & Y- subsidize c. X- impose a maximum price & Y- tax d. X- tax & Y - directly provide
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A government decides that product X is a demerit good and product Y is a public good. Which policy measures is it likely to adopt in relation to the two products? Pick a,b,c, or d
a. X- subsidize & Y- impose a maximum price
b. X- directly provide & Y- subsidize
c. X- impose a maximum price & Y- tax
d. X- tax & Y - directly provide
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- Ceteris paribus, goods with "positive externalities" tend to be developed economies these goods are often by the free-market private sector; thus, in modern by the government. Select one: a. over-supplied; taxed b. under-supplied; taxed C. over-supplied; supplied or otherwise subsidized d. under-supplied; supplied or otherwise subsidizedCeteris paribus, goods with "positive externalities" tend to be___ by the free-market private sector; thus, in modern developed economies these goods are often. by the government. Select one: a. over-supplied; taxed b. under-supplied; taxed C. over-supplied; supplied or otherwise subsidized d. under-supplied; supplied or otherwise subsidizedTo minimize deadweight loss associated with taxation, policy makers should A.impose flat tax rates instead of progressive tax rates. B.impose taxes in markets with positive externalities. C.all of these D.impose taxes in markets with imperfect competition.
- Po =-16-12- E 描く AL वा PA=80-0.6qA PB=50-0.5qB MC $40 AaBbCcDdfe Normal AaBbCcDdEe No Spacing The community has two individuals: Mr. A and Ms. B and the good is a public good, say a highway. Mr. A has a stronger demand (PA) for the highway than Ms. B (PB). The following are their individual inverse demands and MC: Aa BbCcDc AaBb CcDdE A Heading 1 Heading 2 a. Derive the inverse market demand (PM) by adding up vertically the two individual inverse demands PA and PB. Label the cutoff point for the market demand. PM PA+PB = Set gaga because of open access and indivisibility (i..e., no rival in consumption) which are the characteristics of public goods. MacBook Air b. Graph the two individual demands and the market demand. Drawn on the board in the classroom and determine the kink point for the market demand. The vertical and horizontal intercepts of Mr. A's demand curve are The vertical and horizontal intercepts for Ms. B's demand curve are The vertical intercepts for the market demand PM…Refer to the above graph to answer this question. If buyers of this product were subsidized by an amount equal to the external benefits, what would be the total cost to the government of the subsidy a. $10,000. b. $6,000. c. $8,000. d. $14,000. e. $18,000.To determine the optimal amount of a public good to supply, the government must know Question 9Answer a. the price elasticity of demand of each buyer. b. the supply curve of the government. c. everyone's valuation for the public good. d. the revenue of selling the good.
- Suppose that at the current output level the marginal social cost of producing a good is greater than its marginal private cost, and that the marginal social benefit associated with production of the good is equal to its marginal private benefit. Which of the following government actions would most likely increase efficiency? a. Taxing the production of the good b. Taxing the production of substitute goods c. Giving tax rebates to people who purchase the good d. Subsidizing production of complementary goods e. Subsidizing consumption of the goodPolicymakers are provided data about the private and social benefits of a good being sold in the market. Quantity Private MB ($) Social MB ($) 4 9. 5 4 7 6. 2 5 7 3 What is the size of the externality? If the externality is positive, enter a positive number. If negative, make it a negative number. Enter numeric value Given this data, policymakers must decide whether to address the associated externality with a subsidy or a tax. As their economic consultant, which of the two policy tools would you recommend? a subsidy a taxQUESTION 38 | To internalize a positive externality: a. the consumers of a good could receive a subsidy equal to the external benefit resulting from the production or consumption of the good. b. a producer's costs could be increased by an amount equal to the external benefit resulting from the production of the good. c. consumers of the good could pay a tax equal to the external benefit resulting from the production or consumption of the good. d. Both (a) and (c) are correct O E O O O D B A с e. none of the above
- Alcohol taxes that are used by government as an incentive for distillers and beer wholesalers to cut back on their alcohol sales which create external costs are called Sales taxes a. Marketable permits Ob. Subsidies C. Pigouvian taxes Od.Explain a positive and negative externality that you have recently consumed. Please relate your answer to the characteristics of elasticity. Why does the government have to get involved when an externality is present in the market?What"s correct when the government requires those buying a vehicle to provide a parking space prior to granting of vehicle registration documents. A. it is unfair because there have been many who were granted registration of vehicles without complying with this rule B. it is commendable because it eliminates negative externalities C. it is to be completely opposed because it will be another source of corruption D. A and B are correct E. B and C are correct