The graph shows the demand curve for nursing education.The marginal cost of this education is a constant $4,000 per student per yearand the marginal external benefit is a constant $2,000 per student per year.If the government offers students vouchers, what is the value of the voucherthat will achieve the efficient number of students?14-12-10-Price and cost (thousands of dollars)Use the graph to show value of the voucher that will achieve the efficientnumber of students.Draw the marginal social benefit curve. Label it MSB.8-6-4-Draw an arrow at the efficient number of students that shows the value of thevoucher that achieves the efficient number of students.2-The value of the voucher that achieves the efficient number of students is$ ,000 a student.MSCD= MB20406080Students (thousands per year)CDraw only the objects specified in the question.

In the graph above, the Marginal Social Benefit (MSB) curve is shown in green, representing the sum…

Answered: The graph shows the demand curve for…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 3 Professor Paudel shows the graph for the case of negative externalities in the class. He wants the class to think about positive externalities as well. This got him thinking a lot about potential market failure due to positive production externality in the oil exploration market. Specifically, in his research, he found that expenditures on oil exploration by any company can have a positive externality because they offer more profitable opportunities for other companies. Professor Paudel wants you to enlighten him on the following issues: a) Graphically show private and social marginal cost functions and the demand curve. b) Under positive externalities as mentioned above, is the social marginal cost below than the private marginal cost? Explain and support your answers with the help of a clearly labeled graph. c) Under positive externalities as mentioned above, what's the relationship between social optimum quantity and the competitive market equilibrium quantity? Is there…
Attempts Average / 2 8. Property rights and market failures Bakers are much likely to supply pastries to the market if property rights are not enforced. In the presence of market failures, public policy can improve economic efficiency. Classify the source of market failure in each case listed. Market Market Failure Power Externality A manufacturing plant dumps chemical waste into a nearby river, poisoning the water supply for a small town downstream. There is only one car dealership in a small town, giving the dealership the ability to influence the price of cars.
Adam Smith proposed taxing ‘Sugar, rum and tobacco’ because they are: “nowhere necessaries of life” “objects of almost universal consumption” Why do you think Adam Smith preferred to impose a tax on luxury goods? Why do you think Adam Smith preferred a tax on ‘objects of almost universal consumption’? Note that ‘Smith’s proposal to tax sugar was not aimed at improving health’ Requirement: Demonstrate a precise understanding of Adam Smith’s meaning and intent, with the appropriate link to relevant economic concepts.
Viral infections such as flu are highly contagious. The number of infections and thus the spread of the disease can be prevented by getting vaccinated. However, the decision to take vaccine is voluntary and some people choose not to go for it for various reasons.] [What type of externality occurs by getting vaccinated against contagious diseases? Explain your answer in 100 words or less. [In a diagram, show the market equilibrium quantity of the vaccine. Is the quantity also socially efficient? Explain in 100 words or less and demonstrate using the same diagram. [Suggest one method to achieve a socially efficient outcome. Explain your answer in 100 or less words.
Classify each statement as a positive externality associated with education or a negative externality associated with education. Positive externalties of education Negative externalities of education Answer Bank a higher voter participation rate reduced welfare dependency an increased standard of living lower crime rates
ECON201 Macroeconomics - Associate Professor Jamie J. Muter 5) Chapter 6 Problem 4.14 Some firms offer their employees' health care plans with high deductibles, sometimes as much as $4,500 per year. What effect do high-deductible plans have on how often employees visit doctors or otherwise use health care services? If the federal government were to require that employer health care plans have deductibles that were no greater than $200 per year, would the employees in these plans be better off? Would the employers offering these plans be worse off? Briefly explain. I
Price (thousands of dollars) 100 80 60 40 20 5 10 15 MC 20 MB 25 Quantity (police officers) The figure above shows the marginal cost and marginal benefit of police protection in the city of Hugo, Oklahoma. Police protection is a public good. If the city of Hugo hires 25 officers, then OA. marginal cost will exceed marginal benefit, which means that the efficient number of officers is less than 25. B. marginal benefit will exceed marginal cost, which means that Hugo should reduce the number of officers they hire. OC. marginal benefit equals marginal cost. D. marginal cost will exceed marginal benefit, which means that the efficient number of officers is more than 25. OE. None of the above answers is correct. 1 5 $ 54 # 3 R E D MacBook Pro % ^ 5 6 F T Y 27 G H U כ 8 * 00 X C V B N H ed J - < ) 9 -O M K Time Remaining: 00:44:50 Next 40 |- 00 0 L V- P .V 11 + لالي = - ? H r command option } 1
7) The graph below depicts the social loss from the existence of health insurance in the presence of moral hazard. Price Demand curve with partial coinsurance Quantity a. What is the cause of the social loss? Briefly explain. b. Why do we have health insurance if social loss is created as a result of health insurance? ( Social loss
BND11.1 Why Do Externalities Cause Deadweight Loss?
Policymakers realize that, although education creates a positive benefit for those who obtain it, it also creates external benefits for the community where the educated individual resides. The graph depicts the marginal social cost (MSC) and the marginal social benefit (MSB) associated with education. On the graph, move the point, P, to the point representing the optimal level of education. Dollars (thousands) 100 90 80 70 60 50 40 30 20 10 0 0 2 4 MSC MSB 6 8 10 12 14 16 18 20 22 Years of schooling optimal schooling: 14 What is the socially optimal number of years of schooling for each citizen? years
Because the federal government typically provides disaster relief to farmers, many farmers do not buy crop insurance even though it is federally subsidized. This illustrates: explain your answer The adverse selection problem The moral hazard problem A failure of the market for externalities The existence of positive externalities

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