Answered: negative externality and positive…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Use a supply and demand graph to show a good which should be illegal owing to it's negative externality.
A local school administrator observes an increase in the number of flu cases in the public schools over the last two years. She is concerned that some families cannot afford flu vaccine and are therefore not having children vaccinated. She is also concerned that the failure to vaccinate some children is putting other children at risk, so she proposes that the state subsidize vaccines to increase coverage rates. a. Determine whether the failure to vaccinate some children is an external benefit or an external cost. If an external cost is present, move point A and point B to show the marginal social cost curve. If an external benefit is present, move point A and point B to show the marginal social benefit curve. Place point C at the equilibrium outcome. Place point D at the socially optimal outcome. Flu vaccines A B D Supply (marginal private cost) Price
Positive externality No externality Negative externality Answer Bank The U.S. government decides to Lyle and Julia from The hing company icago house all of its nuclear waste to Los Angeles with their newborn infant who cries the entire way illegally hunts the Coelacanth, material at Cactus Cliff, WY. As a critically endangered fish that is close to extinction with all nuclear waste, there is no fail-safe protection method Jane raises bees to produce honey Ronald, the first in his family to attend for her business, but her bees also college, graduates from medical school pollinate many flowers in the neighborhood where she lives. and decides to return home to work as a doctor in his old neighborhood.
Ricky, a retired railroad conductor and Lucy, a full time lab technician are next door neighbors in an apartment building. Ricky loves to play loud heavy metal music, which can be heard for hours during the evening.Lucy can't stand heavy metal, which often rattles the wall of her small apartment from the large speakers next door. A. What is the externality in the example above? B. What command-and-control policies might the landlord impose? Could such policies lead to an inefficient outcome? C. If the landlord refuses to get involved in the despute. Based on the ideas associated with the Coase theorem, how might Ricky and Lucy reach an efficient outcome on their own? What might prevent them from reaching an efficient outcome?
Externalities Do you think that there would be external effects associated with Water from a uranium mine leaking into Kakadu National Park? If so, what would be the nature of the external effects? Can you think of policies that might deal with each external effect (that is, improve social wellbeing)?
The following graph represents the market for high-emissions cars. Answer this question assuming that the externality is not internalised. Which quantity is socially optimal (i.e. what is the efficient quantity)? What is the deadweight loss generated by the externality?
a. When a firm imposes an external social cost (negative externality), the government should impose a tax on production equal to the externality cost to ensure that the market will achieve the socially optimal outcome. Select one: True False b. The socially optimal level of emissions of most pollutants is zero. Select one: True False c. Externalities are only inefficient when they impose a cost. They are not inefficient when they bestow a benefit. Select one: True False
Which of the following are examples of negative externalities? A. Reduced spread of COVID-19 and other infectious diseases from people physically distancing and wearing masks. B. Unsightly oil rigs offshore from Santa Barbara, diminishing the quality of the view for beachgoers and coastal homeowners. C. Reduced incidence of the common flu stemming from more people obtaining flu shots during the Fall. D. Reduced crime rates stemming from rapid economic growth and reduced unemployment. E. High gas prices caused by rapid demand growth in China. F. Job losses associated with a factory closure in the United States, because a factory was opened in Mexico to replace it. G. Noise from traffic on a busy street. H. Light pollution from cities making it more difficult for observatories to view distant stars. I. Noise pollution eminating from windmills on the North Shore of Oahu. J. Pollution emissions from power plants.
Offer an example of a good or service with a negative externality. What is the externality of the good or service you mentioned?
Give an example of a positive externality and an example of a negative externality that exist in the economy? Share your thoughts in a paragraph
Determine whether the actions below correct positive, negative externalities or neither: A. Correct positive externalities B. Correct negative externalities C. Correct neither 1. government control of the prices in the market 2. Subsidize production in the market ? ✓ 3. Increase the cost of production in the market ? ?
what is an externality? give an example of a postiive externality and an example of negative externality

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negative externality and positive externality means what and what is an example of each.