Central City is located in the state of Middleground. The government of Middleground has told Central City that it will match every dollar of local spending on sanitation with an open-ended categorical grant of $0.25. What is the price of additional amounts of sanitation services to Central City? $0.20 $0.25 O $0.75 $0.80
Q: The marginal cost of health insurance is a constant $8,000 a year and the figure shows the marginal…
A: Externalities: When a firm produces a good sometimes it creates cost or benefits for other firms. If…
Q: The coronavirus pandemic has drawn attention to the importance of vaccinations (and other health…
A: Hey, thanks for the question. Since you have posted multiple questions we will answer one the first…
Q: If allocating water through non-price means generally harms society, can you suggest why governments…
A: Governments often allocate water through non-price means for various reasons, even though it may not…
Q: 11.05 Unanswered • 2 attempts left Bailey has a dog whose loud barking upsets their neighbour,…
A: Coase theorem is an economic theory of property rights. It states that in case of competitive…
Q: QA-7-.5P Qa-10-P Qc=18-3P Make a price quantity chart for each consumer. Then add a column showing…
A: In perfect market competition the optimum quantity is produced where the demand curve and the supply…
Q: S Dsoc Dsoc Dpriv Dpriv Qpriv Qšoc igure 1. Private and social demand curves for the vaccines for…
A: Coase therorem is the ways one can bring in the trade externality to be possible and bring in the…
Q: Raven Farms raises a substantial number of bees and uses the honey to produce its own skin healing…
A: The objective of the question is to understand the concept of private and social benefits in the…
Q: True or False. An analysis of the general equilibrium effects of a voucher program accounts for…
A: General Equilibrium theory illustrates the behavior of demand, supply, and prices and their…
Q: Ellen and Jo have identical marginal private cost curves and demand curves and use the same amount…
A: Demand represents the volume of goods and services that the consumers are willing to buy at…
Q: The production of fabric generates toxic effluents related to the dyes used. This is typically…
A: The social optimum output, also known as the socially optimal quantity, refers to the level of…
Q: For a pollutant like lead, which causes health effects to local residents even at very low levels,…
A: Emissions standardsReason-Emissions standards are regulations enforced by the government that set…
Q: The National Institute of Health (NIH) provides grants funded by the U.S. government to researchers…
A: The investigations which aim for answering questions, testing ideas, an improvement on options of…
Q: 5) Smoking increases health care costs. Is this an externality? Which of the following statements…
A: Negative Externality: The term negative externality refers to the consequence to the third person…
Q: Suppose that the marginal social benefit of insurance exceeds the willingness and ability to pay by…
A: This can be defined as a cost that shows the type of cost that an individual, business, or any other…
Q: The diagram to the right depicts the market for cough medicine in a small town. The quantity of…
A: Deadweight loss arises when less than or greater than socially efficient quantity is produced. The…
Q: The table below shows the marginal private benefits and the marginal private costs of flu shots. The…
A: Marginal benefits are the maximum amount a consumer will pay for an additional product or service. A…
Q: As an economist, please consider the extent to which the increasing enrollment in…
A: There are various reasons why increased government-sponsored healthcare enrollment may justify…
Q: What are the appropriate government responses to health externalities such as smoking, drinking, and…
A: Negative externality: Externality refers to the situation of a person engaging in activities that…
Q: The diagram to the right depicts the market for cough medicine in a small town. The quantity of…
A: Here, it is given that D1 represents private marginal benefit curve and D2 represents social…
Q: If provision of vaccines is left to a private market with no adjustment for the positive externality…
A: This can be described as a form of market in which no single producer or consumer has the power to…
Q: Name the 3 core functions of public health and describe those with the 10 essential services of…
A: A nation's public health system is a collection of all organized actions aimed at preventing…
Q: The market inverse supply curve for amoxicillin, an antibiotic with lots of generics, is represented…
A: The above given situation of an antibiotic causing negative externality is explained as follows:
Q: How can a society reach a socially efficient equilibrium basing it on the Coase Theorem if a vaccine…
A: Coase theorem – the theory was developed by Ronald Coase, it states that under perfect competition…
Q: Macmillan Learning (Table: Total Cost and Total Individual Benefit Received from Sanitation Workers)…
A: The social benefits arise when a product or service causes a positive effect on society as a whole…
Q: Why is clean air a public good? What does Fig. 18.16 (image provided) show about the willingness to…
A: The relationship between a good's price and the quantity that customers want to buy is depicted by…
Q: Which of the following is an example of a nonexcludable good? O A) A flu vaccine B) A Broadway show…
A: Answer: Correct option: C) Fish in the ocean Explanation: A non-excludable good is free for…
Q: The following graphs illustrate how positive externalities can be generated by both the production…
A: Step 1: Step 2: Step 3: Step 4:
Q: . Discuss the concept of externality in health care using the example of vaccination against an…
A: An externality basically refers to a cost or benefit incurred or obtained by a producer or person…
Q: how does the covid vaccination affect or influence one’s personal & family health. how does it…
A: The Covid vaccination would lead to eradication of the deadly virus. The pandemic lead to…
Q: Herd immunity is a negative health externality. O True O False
A: Externality refers to spill-over effect of a good on society who is not involved in either…
Q: For each of the following insurance plan designs, use a supply and demand graph to show how it would…
A: Insurance Insurance is a contract in which a person or organization gets financial protection or…
Q: discovered that production of painclear damages groundwater quality – this affects just one party:…
A: The purpose of this question is to show the social perspective, the optimal size is where the…
Q: An underground aquifer in a developing country is available to all farms in a small community. It…
A: Externalities are important in economics because they indicate the unintended consequences of…
Q: Suppose the paper production industry causes a negative externality and paper is sold in a perfectly…
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: Since healthcare is provided by the NHS in the UK, it is a public good rather than a private good.…
A: Question 25Statement: Since healthcare is provided by the NHS in the UK, it is a public good rather…
Q: Discuss how rationing impure public goods would limit consumption of the following (USE PROPER…
A: Rationing: This can be explained as a significant constraint which the authorities uses to restrict…
Q: Given that demand for medical services is given by equation P 250 50Q. The marginal costs for…
A: Insurance refers to the coverage of the risk. Medical insurance is beneficial individually as well…
Q: Consumers A, B, C, and D respectively have a willingness to pay of $130, $100, $80, and $50 for one…
A: The socially efficient quantity is when optimal quantity is achieved using prices and there is no…
Q: A vaccinated individual cannot catch a cold nor spread their virus to someone else. Therefore, the…
A: "Marginal social benefit from consumption of a product represents the benefits experienced by buyers…
Q: Example 18.7 The Demand for Clean Air In Example 4.6 we used the demand curve for clean air to…
A: The demand for a good in general illustrated using demand curve typically slopes downwards. This is…
Q: Parks confer many external benefits on society: open space, trees that reduce pollution, and so on.…
A: An externality is the benefit or the cost that a producer or seller incurs when the sell the goods…
Step by step
Solved in 2 steps
- Consider an infectious disease such as the flu which is spread primarily through virus particles in aerosolized respiratory droplets of already infected people. a In the midst of an infectious disease epidemic of this sort, is it privately rational for people to limit their exposure to other people, perhaps by staying home from work or not going to school? b An infected person who goes out into public areas and does not take precautions to contain their respiratory emissions clearly poses a negative externality on those around them. Does an uninfected person going out into public areas also pose a negative externality? c For a particularly severe disease outbreak of this sort, one possible government response is to exaggerate to the public both the harm that might arise from contracting the disease and the likelihood of contracting the disease. In what ways might such a strategy reduce the harm to the public from the disease epidemic? In what ways might such a strategy increase the…Assume that health insurance is private in a country, and the market for insurance is competitive. The figure below shows the marginal benefit and willingness and ability to pay curve. Premium (thousands of dollars per year) $160 billion. $80 billion. $160 million. $80 million. 12 10 8 606 4 2 0 D = MB 10 20 30 40 50 Quantity (millions of families insured) Suppose that the marginal social benefit of insurance exceeds the willingness and ability to pay by a constant $2,000 per family per year. Suppose the marginal cost of health insurance is a constant $8,000 a year. If the government decides to provide public health insurance, how much will taxpayers have to pay?Consider the table. Number of street lamps Marginal benefit (in $) 123 4 5 6 7 30 26 22 18 14 10 6 Suppose that a small town wants to install street lamps, which are nonrival in consumption and nonexcludable. Each of the 25 people in the town value street lamps according to the given schedule. Street lamps each cost $250 to install. Use this information to answer the questions. What is the socially optimal number of street lamps? Suppose that 20 of the 25 townspeople decide that they will not help pay for street lamps, and will instead enjoy (for free) the street lamps built by the other five people. What is the maximum number of street lamps that will be built by the remaining five people? Suppose the town government decides to build street lamps and pay for the street lamps through taxation. How much should each person be taxed to pay for the optimal number of street lamps if everyone is taxed equally? S I street lamps street lamps
- Assume that radio broadcasts are nonrival and nonexcludable. Two people, Artie and Bill, listen to the same radio station during their commute. Each person values the radio station at $3$3 per day. Both Artie and Bill loathe listening to advertisements. Listening to advertisements makes Artie and Bill each worse off by $1.50$1.50 per day. The radio station needs $2$2 per day to continue operating, which it currently earns from advertisers ($2$2 per day is exactly what the airtime is worth to the advertisers). The radio station is considering asking for donations from Artie and Bill and getting rid of the advertising. Artie and Bill can choose to donate to prevent advertisements or not. If only one chooses to donate, he must donate the whole $2$2 to get rid of the ads. If both choose to donate, each pays $1.$1. Assume that both Artie and Bill are each trying to gain the most net benefit possible, and that they do not cooperate with each other. What is the socially efficient way to…Early settlers in the town of Dry Gulch drilled wells to pump as much water as they wanted from the single aquifer beneath the town. (An aquifer is an underground body of water.) As more people settled in Dry Gulch, the aquifer level fell and new wells had to be drilled deeper at higher cost. The residents of Dry Gulch will overuse water relative to the social optimum because Multiple Choice each resident will fail to adequately consider the external cost of his or her own water use water is a scarce resource each resident will fail to adequately consider the external benefit of his or her own water use the marginal cost of water is increasingWhat distinguishes a public good from a private good? What kind of market failure is addressed when goods are publicly supplied? Why do some private goods like elementary education or public health services get supplied as public goods? In your understanding of evidence from India or other countries on educational outcomes of public schools or delivery of public health services, is public spending on education or public health a good idea, if not, why not?
- 1. Are vaccines considered as public good? Show in graphical explanation or representation. 2. Should vaccines be mandatory? Show in graphical explanation or representation.The production of fabric generates toxic effluents related to the dyes used. This is typically disposed of with wastewater, which generates pollution. If the government does not intervene, the market for fabric has an equilibrium price of $250 per roll and an equilibrium quantity of 10,000 rolls. a.How would the socially optimal quantity of fabric compare to the free market equilibrium quantity of 10,000 rolls? Why? b. Using a supply and demand graph show the effect on social welfare of allowing the market for fabric to operate without government intervention. Label all the curves and relevant points on your graph. c. Would a government subsidy or tax help the market achieve the social optimum? Explain. Show the necessary subsidy/tax on your graph. d. Explain how this intervention helps achieve the social optimum and what information would be necessary to implement it.Suppose an unvaccinated man Tom would get $10 of private benefit out of a flu shot. The flu shot costs $20 at the local clinic. The herd immunity benefit of the shot is worth an additional $15 to Tom's friends and co-workers. (1) What is the private cost incurred when Tom gets the shot? (2) Is it privately efficient for Tom to get the shot? (3) What is the public or social cost incurred when Tom gets the shot? (4) What is the public or social benefit when Tom gets the shot? (5) Is it publicly/socially efficient for Tom to get the shot? Hint: please consider only the information provided in the question. Any other potential cost or benefit can be ignored. Please explain your answers. Do not simply provide a Yes or No as the answer. If it involves calculations, show your steps.
- $100 Price 80 60 40 20 0 100 200 300 400 500 600. Quantity of Health Care Refer to the graph for the health care market. A health insurance plan that pays four-fifths of the cost of a consumer's health care leads to Multiple Choice S O overconsumption of health care by 300 units. overconsumption of health care by 600 units. DSketch an externality graph (model) that is positive and demonstrates the vaccine market. Make sure to label the private vaccine usage amount (the amount of vaccines that are used in the market if the market is left to its own devices to find an equilibrium.) As well, mark the socially optimal level of vaccine usage if the gov. involves itself to reach a level of vaccine usage that gives all individuals protection from a deadly virus. Describe what the governments reason may be to select to subsidize the market for vaccines?Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the model to show the impact of the negative externality from second-hand smoking. (Hint: In this case it is the consumers,notthesellers,whoarecreatingthenegative externality.)Labelthesocialoptimaloutputandpriceas PeandQe.Onthegraph,shadeinthedeadweightlossat the market output.