uppose that elementary education creates a positive externality. If the government does not absidize education, then elect one: O a. the equilibrium quantity of education is optimal O b. the equilibrium quantity of education will be less than the socially optimal quantity of education O c. the equilibrium quantity of education will be equal to the socially optimal quantity of education O d. the equilibrium quantity of education will be greater than the socially optimal quantity of education

uppose that elementary education creates a positive externality. If the government does not absidize education, then elect one: O a. the equilibrium quantity of education is optimal O b. the equilibrium quantity of education will be less than the socially optimal quantity of education O c. the equilibrium quantity of education will be equal to the socially optimal quantity of education O d. the equilibrium quantity of education will be greater than the socially optimal quantity of education

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price Ssocial Sinternal $7.00 $6.00 $5.00 D $4.00 Dinternal 3,000 3,500 Quantity externality. In the market shown in the diagram above, there is a Select one: a. negative production b. negative consumption c. positive production d. positive consumption
Four roommates a rc planning to sp<,nd the weekendin their dorm room watching old movies, and they arcdebating how many lo watch. Herc is their willingnessto pay for each film: a. Within the donn room, is the showing of a moviea public good? Why or why not?b. If it costs $8 to rent a movie, how many movies shouldthe roommates rent to maximiz.c total surplus 7c. H they choose the optimal number from part (b)and then split the cost of renting the moviesequally, how much surplus does each personobtain from watching the movies?d. Is there any way to split the cost lo ensure tha teveryone benefits? What practical problcms doesthis solution raise?e. Su pposc they agrcc in advance to choose the ef.ficient number and lo split the cost of the moviesequall}'- When Steven is asked his willingness topa}\ will he have an incentive to tell the truth 7 Ifso, why? If not, what will he be tempted to say?f. What docs this example teach you about the optimal provision of public goods?
2. Use the graph below to answer the two questions on the right. Price If a positive externality exists and the government intervenes, which curve shifts and in what direction? Ssocial internal If a negative externality exists and the government does intervene, which curve shifts Docial and in what direction? Dinternal Quantity
Principles of Microeconomics Prof. Pinyuan Dong Due October 12, 2022 Problem Set 2 A. Suppose the demand and supply for the market of cigarettes in a city is given by QD = 400-50P, Qs = 50P. 1. Graph the demand and supply curves. What is the market equilibrium price and quantity? 2. The city council wants to discourage smoking. If the socially optimal demand for cigarettes is QD 200-50P, what can the city council do to achieve the socially optimal demand? 3. What is the quantity of cigarette sold after the government takes appropriate actions? How much do consumers pay and how much do producers get? Is the government action effective in its objective of discouraging cigarette consumption? B. Suppose the local gas station in a small town sells regular gasoline at $4/gallon. The gas station sells 100 gallons in a day. Due to global gas prices, it increased the price to $5/gallon. The next day, the gas station is only selling 90 gallons a day 1. Using these two points, calculate the price…
Which type of externalities does the lumber industry have when more trees are planted? A. Negative externalities in consumption. B. Positive externalities in production. C. Positive externalities in consumption. D. Negative externalities in production. E. Pecuniary externalities. F. No externality problem. OB OA OC OE OF
Crying babies on an airplane impose a negative externality on those sitting around them.The airline can force the parents of the babies to internalize the cost by Select one: O a. Charging a higher ticket fee for babies and young children. O b. imposing a minimum flying age of 5 years old. O c. evenly dispersing the babies and young children throughout the plane. O d. seating all parents, babies and young children in the same section of the plane. O e. providing discount tickets for babies and young children. Next page ge n this page
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
What is an external benefit? An external benefit is a benefit that OA. always equals external cost OB. experiences increasing marginal returns C. affects someone other than the buyer of a good OD. is greatest at the equilibrium point
11. Compared to a good with no externalities, a good with a negative externality will appear to have experienced a OIncrease in Supply ODecrease in Supply Olncrease in Demand ODecrease in Demand at each corresponding price...
Sub : EconomicsPls answer very fast.i ll upvote correct answer . Thank You The figure below shows the market for water-skiing permits on Shuswap Lake in British Columbia. Every person who wishes to water ski must obtain a permit, which is valid for one day. Suppose that each water skier imposes a $4 negative externality on other people who use the lake.
18. The next few questions are about this generic market with a negative consumption externality. Fill in the welfare table below with the areas associated with each welfare measure. aslhee or batoob A P. 1 F H. G MSB Q, Qi tax that leads to Qo CS PS tax revenue externality total surplus gqg 53 2Abbo20 (p re 9 boagns exrsLU ednsto 75 beLapor ent