Microeconomics
11th Edition
ISBN: 9781260507041
Author: Colander, David
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 4QAP
(a)
To determine
Explain the comparison and the contrast for allocation outcome with a free market outcome.
(b)
To determine
Explain which alternative is more just.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The chart above shows the market for polio vaccine in Pakistan. This vaccine provides external benefits because vaccinating one person reduces the likelihood of other people catching the disease.
a.) If there is a competitive market and there is no government intervention, what will be the amount of vaccine?
b. ) If a foundation takes over the cost of the vaccine, what will be the amount of vaccine used in the market? How will the market efficiency change? Why?
A well educated society can be considered which of the following, as it pertains to economics?
Negative Externality
Positive Externality
Economic Relief
Social Welfare
Answer to this please?
Chapter 1 Solutions
Microeconomics
Ch. 1.1 - Prob. 1LOCh. 1.1 - Prob. 1QCh. 1.1 - Prob. 2QCh. 1.1 - Prob. 3QCh. 1.1 - Prob. 4QCh. 1.1 - Prob. 5QCh. 1.1 - Prob. 6QCh. 1.1 - Prob. 7QCh. 1.1 - Prob. 8QCh. 1.1 - Prob. 9Q
Ch. 1.1 - Prob. 10QCh. 1 - Prob. 1QECh. 1 - Prob. 2QECh. 1 - Prob. 3QECh. 1 - Prob. 4QECh. 1 - Prob. 5QECh. 1 - Prob. 6QECh. 1 - Prob. 7QECh. 1 - Prob. 8QECh. 1 - Prob. 9QECh. 1 - Prob. 10QECh. 1 - Prob. 11QECh. 1 - Prob. 12QECh. 1 - Prob. 13QECh. 1 - Prob. 14QECh. 1 - Prob. 15QECh. 1 - Prob. 16QECh. 1 - Prob. 17QECh. 1 - Prob. 18QECh. 1 - Prob. 1QAPCh. 1 - Prob. 2QAPCh. 1 - Prob. 3QAPCh. 1 - Prob. 4QAPCh. 1 - Prob. 5QAPCh. 1 - Prob. 6QAPCh. 1 - Prob. 1IPCh. 1 - Prob. 2IPCh. 1 - Prob. 3IPCh. 1 - Prob. 4IPCh. 1 - Prob. 5IPCh. 1 - Prob. 6IPCh. 1 - Prob. 7IPCh. 1 - Prob. 8IPCh. 1 - Prob. 9IPCh. 1 - Prob. 10IPCh. 1 - Prob. 11IPCh. 1 - Prob. 12IPCh. 1 - Prob. 13IP
Knowledge Booster
Similar questions
- An externality arises when a firm or person engages in an activity that affects the wellbeing of a third party, yet neither pays nor receives any compensation for that effect. If the impact on the third party is adverse, it is called a externality. The following graph shows the demand and supply curves for a good with this type of externality. The dashed drop lines on the graph reflect the market equilibrium price and quantity for this good. Adjust one or both of the curves to refiect the presence of the externality. If the social cost of producing the good is not equal to the private cost, then you should drag the supply curve to reflect the social costs of producing the good; similarly, if the social value of producing the good is not equal to the private value, then you should drag the demand curve to reflect the social value of consuming the good. -O- Supply Demand Supply Demand QUANTITY (Unts) With this type of externality, in the absence of government intervention, the market…arrow_forwardAn externality arises when a firm or person engages in an activity that affects the wellbeing of a third party, yet neither pays nor receives any compensation for that effect. If the impact on the third party is beneficial, it is called a externality. The following graph shows the demand and supply curves for a good with this type of externality. The dashed drop lines on the graph reflect the market equilibrium price and quantity for this good. Adjust one or both of the curves to reflect the presence of the externality. If the social cost of producing the good is not equal to the private cost, then you should drag the supply curve to reflect the social costs of producing the good; similarly, if the social value of producing the good is not equal to the private value, then you should drag the demand curve to reflect the social value of consuming the good. (?) PRICE (Dollars per unit) QUANTITY (Units) Supply Demand ¦ þ Demand Supplyarrow_forwardQuestion Britain is proud of its National Health Service (NHS). In 1948, the National Health Service Act stipulated that the government would provide virtually free medical care for all citizens. Physicians receive a salary plus a per-patient payment from the government. The NHS embodies the socialist philosophy that profit-driven markets are not the appropriate mechanism for allocating health care. Markets serve two functions simultaneously: (1) allocation of existing goods and services among competing buyers, and (2) motivation for producers to bring new goods and services to the market. The NHS was established to replace market-determined prices with prioritized waiting lists as the allocation mechanism among competing buyers. Recently, however, the NHS has embraced the profit motive as a mechanism for performing the second function. The Economist reported that the government has introduced mechanisms to allow hospitals and individual inventors to profit from their innovations.…arrow_forward
- Which of the below statements DOES NOT capture Economics? Group of answer choices Economics tells us that there is no theoretical limit to how well we can live or how widely our wealth can spread. The economic prosperity of an economy requires that every person in that economy have a Ph.D. degree. Wheelan argues that the free market system does not make poverty inevitable. Economic development is not a zero-sum game. Even the most prosperous economy will contiue to require certain manual tasks that do not require advanced college degrees. These tasks cannot be replaced with automation. Expecting Ph.D.s or people with professional education to do such tasks will have a high opportunity cost.arrow_forwardSuppose the Environmental Protection Agency (EPA) wants to mandate that all methane emissions must be reduced to zero in order to alleviate global warming in the United States. Which of the following describes why most economists would disagree with this policy? Reducing methane emissions is desirable, but whatever levels of pollution firms decide to emit privately are already efficient. Society would not benefit from lower air pollution. The environment isn’t worth protecting. The opportunity cost of zero pollution is much higher than its benefit.arrow_forwardCurrent research on kidney transplants (see https://www.organdonor.gov/learn/organ-donation-statistics) shows that 17 people a day die while waiting for an organ. This is because: Of the negative externalities that prevent the government from legalizing the buying and selling of organs. Because demand is greater than supply, reflecting the fact that people should be more willing to donate their organs. Because the rationing role of prices is not legally allowed to work in this instance. Because organ prices are so high, most poorer people cannot afford one. A and D only.arrow_forward
- The pandemic has upended the way New Yorkers dine out: There are sidewalk tables, open streets, streeteries, and barely anyone eating indoors. Now, as the weather gets colder, there are also plastic bubbles out on sidewalks, too. A video of the dome-shaped tents on a West Village street went viral this week, prompting questions of how safe they are, not to mention just what they are. Bubbles of various sorts have shown up around the country since restaurants began to ease into this new, strange era of dining out. […] But the igloolike tents can also get costly and require strict sanitation measures, and some health experts question how safe they actually are. … the big question: Are these things safe? Along with sanitation protocols, most restaurants use flameless candles inside the bubbles in hopes of avoiding any melt-y fires (PVC is toxic when it burns). But the biggest concern is of course the reason for the bubble in the first place, COVID. Dr. Abraar Karan is an internal…arrow_forwardThe costs or benefits of a market activity that affect a third party are called: A) externalities. B) public goods. C) common resource goods. D) artificially scarce (or club) goods.arrow_forwardThe BBC News reported that the war between Ukraine and Russia has resulted in food prices across the world increasing by 30%. Is this a reality for your country and if so explain two strategy that can be used to mitigate against this economic challenge.arrow_forward
- a) What is meant by Pareto efficiency in economics? Explain. b) List two examples of market failures that are relevant for environmental economics.arrow_forwardImagine that a town of 200 people is trying to decide whether to pay for mosquito control. The town has surveyed their citizens and they each say they value mosquito control at $75. Mosquito control only costs $2,500 so the town goes ahead and pays for the service. When the town asks for donations to pay for the mosquito control, they only receive $1,000. What does this result show? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a The town's citizens were free riders. b The mosquito control suffered from the tragedy of commons. The mosquito control cost must have been greater than its economic benefit. d. The town's survey must have overestimated the value of mosquito control.arrow_forwardQuestion 1. What is the difference between normative and positive approaches to public policy? Question 2. What is “predatory pricing”?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning