When people wear masks during a pandemic it provides an external benefit to others. Economists would likely argue thatgovernments shouldsocially optimal level.for masks otherwise the amount of mask wearing produced by the market would betheSelect an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer.aimpose a tax; aboveprovide a subsidy; belowimpose a tax; belowP.provide a subsidy; above

During a Pandemic, wearing mask generates external benefits because it reduces the chance of…

Answered: When people wear masks during a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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19)Which of the following best illustrates the ceteris paribus assumption? * a)If the law requires people to wear seatbelts in order to reduce fatality rates, it may also cause people to drive faster. b)Chris notices that when economists discuss policy, they use the word "should" quite a lot, and they tend to disagree c)Felicia argues that since her company makes less profit when it limits its toxic pollution emissions, it must be true that pollution regulations are bad for everyone d)Caitlin notices that all other things being equal, her grades are higher the more time she spends studying
Assume that to balance the benefits of providing electricity with its pollution costs, A. Treehugger recommends that the government imposes a tax $0.04 for every kilowatt hour (kWh) of electricity sold. If they do, how much of this tax is actually paid by the customer (consumer’s burden) and how much is paid by the firm (producer’s burden)?
C. How would you calculate: (1) the total amount of subsidy incurred by the government to socially efficient allocate?
Pure public goods often suffer from the?
Critique the following statement as True or False and explain your reasoning in 2-3 sentences. "Market failures are observed when government intervention prevents market forces from guiding marketstoward an equilibrium."
in the town of Externalia, vaccination programs create additional benefits to the community, beyond the consumers who actually purchase vaccinations The graph on the right shows the market for vaccinations 11 Using the line drawing tool, show a ine representing the true demand for vaccinations, if the external benefit were taken into account Label your line D 2) Using the point drawing tool show the new equibrium price and quantity Label your point E Carefully follow the instructions above, and only draw the required objects Price (5) Qo Quantity of vaccinations (housands)
Lucia is waiting in line to receive a free t-shirt at a charity event. Because the shirts are free, there are many people in line, and a long wait time is expected. Consider the following sentence: By waiting in line for the shirt Lucia will miss an appointment to tutor an economics student, for which she would have been paid $30. Which basic concept of individual choice does this sentence best illustrate? A. Externalities are a shortcoming of the market. B. Many decisions are made on the margin. C. People usually exploit opportunities to make themselves better off. D. Opportunity costs and money costs (price) are related but are not always exactly the same.
The graph shows the marginal private benefit from a law degree and the marginal cost of obtaining a law degree. The marginal external benefit is $16,000 per law graduate per year. Suppose the government offers vouchers to those who enroll at a law school. Draw the marginal social benefit curve. Label it MSB. Draw an arrow at the efficient number of students to show the value of the voucher that achieves the efficient number of students. The value of the voucher that achieves the efficient number of students is $ >>> Remember that the quantity given on the y-axis is in thousands of dollars. per student. C 48- 40- 32- 24- 16- 8- Price and cost (thousands of dollars) S=MC D = MB 10 30 40 Students (thousands per year) >>> Draw only the objects specified in the question. 20 50 o
A study finds that the noise from lawn mowers is harmful; hence, the government imposes a $20 tax on the sale of every lawn mower. This amount accurately accounts for the external cost of the noise pollution. Before the corrective tax, basic push mowers regularly sold for $190. After the tax is in place, the market price for basic push mowers rises to $195. The socially optimal price of basic push mowers is _____ $ .

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