A trade off exists between a clean environment and a higher level of income in that a) studies show that individuals with higher levels of income pollute less than low-income individuals. b) efforts to reduce pollution typically are not completely successful. c) laws that reduce pollution raise costs of production and reduce incomes. d) employing individuals to clean up pollution causes increases in employment and income. Answer ____

A trade off exists between a clean environment and a higher level of income in that a) studies show that individuals with higher levels of income pollute less than low-income individuals. b) efforts to reduce pollution typically are not completely successful. c) laws that reduce pollution raise costs of production and reduce incomes. d) employing individuals to clean up pollution causes increases in employment and income. Answer ____

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 3PA

See similar textbooks

Related questions

Q: PRICE OF WILDFLOWERS 9. Efficiency in the presence of externalities Wildflowers grant many external…

A: Externalities refer to the costs or benefits of an economic transaction incurred on a third party…

Q: 8. Assume there are two firms in an industry that generate a nasty pollutant. The government wants…

A: A negative externality occurs when the actions of a producer or consumer impose costs on third…

Q: QUESTION 16 16. Entering patient health care data into a database accessible to health care…

A: Externalities refers to the spillover effect of one person's economic effect on other Person's…

Q: 1. Marginal Abatement Cost Curves There are two coal plants that generate electricity, firm 1 and…

A: Abatement cost:When any firm or industry emits pollution then they pay the cost for the loss they…

Q: Imagine that new research suggests that if manufacturers in a particular city reduced their…

A: Externality is an economic term that refers to the costs or benefits borne by a third party who has…

Q: A study finds that leaf blowers make too much noise; therefore it is considered a externality, so…

A: The answer for question 19 has been given. In microeconomics, the interaction of demand and supply…

Q: Firm A currently dumps 223 tons of chemicals into the local river. Firm B currently dumps 192 tons…

A: Pollution permits are legal rights given to emit a certain level of pollution over a given period of…

Q: 1. If you were to graph a measure of pollution on one axis and a level of economic activity (such as…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 5) Suppose that an international agreement requires exporters to reduce their carbon emissions. In…

A: Ans. a) The climate crisis is one of the major issues that humanity is facing today, the global…

Q: An economist gives the following advice to a museum director: "You should introduce "peak pricing".…

A: Rivalry and excludability are the characteristics of the good which is used to differentiate a…

Q: The figure to the right shows the marginal cost of pollution abatement for two firms, A and B. The…

A: Given graph: In the given graph, when both firms pollutes 46 units each Cost of abatement for firm…

Q: A city currently emits 16 million gallons (MG) of raw sewage into a lake that is beside the city.…

A: A marginal benefit means the maximum amount a consumer is willing to pay for an additional good or…

Q: Viral infections such as flu are highly contagious. The number of infections and thus the spread of…

A: By getting vaccinated against contagious diseases, individuals create positive externalities in the…

Q: A country is currently creating40 million tons of toxic waste per year. The table below shows the…

A: All forms of unwanted materials example television or phone disposed contain harmful chemicals and…

Q: Suppose the marginal cost of pollution abatement is constant and equal to 10 percent of GDP for each…

A: Pollution abatement is the means through which the pollution level is reduced by the use of…

Q: Andrew, Beth, and Cathy live in Lindhville. Andrew’s demand for bike paths, a public good, is given…

A: Given information: 1) Andrew’s demand for bike paths: Q = 12–2P. 2) Beth’s demand: Q = 18–P, 3)…

Q: xplain what might be the reasons for the implementation of such an activist policy. (Answer this…

A: Sustainable Consumption and production is a comprehensive solution to reducing the negative…

Q: Firm A currently dumps 243 tons of chemicals into the local river. Firm B currently dumps 126 tons…

A: Pollution permits refer to the rights that are legally given to polluting to a certain amount.…

Q: The market price of insecticide is initially $10 per unit. To address a negative externality in this…

A: The insecticide initially cost $10 for every unit at the market. To reduce the negative externality…

Q: QUESTION 3 Fill in the blanks: pollutants are pollutants for which the environment has little or no…

A: Answer: Stock pollutants are pollutants for which the environment has little or no absorptive…

Q: Graph and explain how each externality affects the optimal amount of the good that is generating the…

A: Externality refers to the cost or benefit incurred in a third person who is not engaged in…

Question

Q8. A trade off exists between a clean environment and a higher level of income in that

a) studies show that individuals with higher levels of income pollute less than low-income individuals.
b) efforts to reduce pollution typically are not completely successful.
c) laws that reduce pollution raise costs of production and reduce incomes.
d) employing individuals to clean up pollution causes increases in employment and income.

Answer ____

Explain your answer:

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

19. This next question will require you to draw on what you have learned about supply and demand and taxes. A study finds that leaf blowers make too much noise; therefore it is considered a externality, so the government imposes a $10 tax on the sale of every unit to correct for the social cost of the noise pollution. The tax completely internalizes the externality. Before the corrective tax, Leaves are Us Manufacturing regularly sold blowers for $100 and market quantity is 300. Draw the supply and demand curve for leaf blowers. Label the axes, the curves, market price, market quantity, and equilibrium. Which curve represents private or internal costs? represents external and private costs? This is also known as What is the private market price? What is the private market quantity? Which curve costs. After the tax is in place, the consumer price of leaf blowers rises to $105. With this change in price, the number of leaf blowers will (decrease/increase). Why will this happen?
sub= 24 help
Q4. (a) If you are a firm owner who is operating in the perfect competitive market, you areproducing socially efficient outcome. Does it imply that your profits are zero? If you become amonopolist then why do you deviate from the socially efficient outcome? b) In Delhi, as the winter season is approaching, how will it affect the demand function and themarket equilibrium of sweater market? Now after that if the price of wool increases how will themarket equilibrium be affected?
7
8. Assume there are two firms in an industry that generate a nasty pollutant. The government wants to limit the nasty pollutant by implementing either an environmental standard or an emissions tax. Using the graph below, answer the following questions: a. How many tons of pollutant are emitted in the absence of government intervention? b. How many tons of pollutant are emitted when the government sets an environmental standard of 4 tons per firm? c. How many tons of pollutant are emitted when the government charges a tax of $250/ton? d. What is the loss in "consumer surplus" (to firms) under the environmental standard? e. What is the loss in "consumer surplus" (to firms) under the tax? f. What is government revenue under the environmental standard? g. What is government revenue under the tax? Marginal benefit 500 400 300 200 100 Environmental standard Firm A Firm B environmental standard = 4 tons/firm 4 5 Marginal benefit 500 10 Tons emissions 400 300 200 100 Emissions tax 2.5 Firm A…
6. Achieving lower pollution Suppose a political candidate criticizes a government pollution permit policy that she says lets corporations buy and sell the right to pollute. She argues that our right to breathe and the future of our planet require real regulation instead of this type of government policy. Which of the following describes why most economists would disagree with her statement? The environment is so important that it should be protected as much as possible, regardless of the cost. A free market in tradable pollution permits is typically more efficient than government regulation. A corrective tax would result in a more efficient outcome than either tradable permits or government regulation would. Clean air is a fundamental right, and government regulation will allow too much pollution.
7. Correcting for negative externalities - Taxes versus tradablepermits Nuclear facilities emit radioactive waste as a waste product. This generates a cost to society that is not paid for by the firm; therefore, pollution is a negative externality of electricity production. Suppose the U.S. government wants to correct this market failure by getting firms to internalize the cost of pollution. To do this, the government can charge firms for pollution rights (the right to emit a given quantity of radioactive waste). The following graph shows the daily demand for pollution rights. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Note: Once PRICE(Dollars perton) 23 8 70 49 42 35 21 14 7 0 Demand 0 40 80 120 160 200 240 280 320 360 400 QUANTITY (Millions of tons) Graph Input Tool Daily Demand…
5) Suppose: i) the price of gasoline is $2 per gallon ii) current consumption is 400 (million) gallons per day iii) the elasticity of demand is -0.8 iv) retail provision of gasoline may be approximated as a constant cost industry v) there is an external cost of $0.5 per gallon of gas. Calculate deadweight loss associated with the externality. Draw a figure to illustrate.
1. If you were to graph a measure of pollution on one axis and a level of economic activity (such as the real gross domestic product per person) on the other, what type of relationship do you think you would find? How would you explain this relationship? 2. Think of an externality that arises in a college dorm. What market can you think of that would (or could) eliminate any inefficiencies from that externality?
22.) Consider a market subject to a negative externality cause by pollution. Suppose that, initially, the government is dealing with this negative externality using a Pigouvian tax. The government is considering switching its handling of the negative externality to a scheme where it auctions off pollution licenses to producer instead. If the government makes this policy change, then producer surplus will and government surplus will a.) Increase, increase b.) Decrease, decrease c.) Decrease, increase d.) None of the above 23.) Suppose that Larry, Moe, and Curly's individual demand curves for statues built in their town park are given by PıD =100–QP_PMD =200–2Q", and Pc³ =300–3Qº respectively. What is the slope of the MBS curve for statues? а.) -4 b.) -5 с.) -6 d.) -7 24.) Suppose that, in the above example, statues are sold in a competitive market with a supply curve given by PS =516+QS. What quantity of statues should the local government install in the park to maximize total surplus?…
2.Is the collection of emissions fees economically efficient in terms of cost effectiveness? How do manufacturers determine the amount of pollution reduction?
5) Suppose that an international agreement requires exporters to reduce their carbon emissions. In this context, government subsidies are provided to R&Ds that will enable green-friendly production in exporting industries that produce high-tech.a) Explain what might be the reasons for the implementation of such an activist policy.(Answer this question with the arguments of your main course book, (Krugman; Obstfeld; Melitz; 2015))b) Describe how the Environmental Kuznet curve works. Let's assume that there is a green-friendly technology transfer from developed countries to less developed countries in order to achieve the goal of a decrease in emission, then what will happen to the curve?