Externalities: Any external factor which causes either a benefit or loss to the producers and these benefits or losses do not get reflected in the market price of a good or service and not even reflected in the accounts of a producer, then this is known as externalities. It may be a loss for one party and gain for the other. The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost Pigouvian tax: This tax is laid on the market activity which indulges in generating the negative externality, it is generally set equal to the social cost that the negative externality generates, and it is laid to correct the inefficient outcome of the market. Marginal social cost: The increased cost for the society by any of the activity of an individual or firm is known as marginal social cost, it is calculated by summing up marginal external cost and marginal private cost. Marginal social benefit: The increased benefit for the society by any of the activity of an individual or firm is known as marginal social benefit, it is calculated by summing up marginal external benefit and marginal private benefit.

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Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 10, Problem 3P

To determine

Concept Introduction:

Externalities: Any external factor which causes either a benefit or loss to the producers and these benefits or losses do not get reflected in the market price of a good or service and not even reflected in the accounts of a producer, then this is known as externalities. It may be a loss for one party and gain for the other.

The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost

Pigouvian tax: This tax is laid on the market activity which indulges in generating the negative externality, it is generally set equal to the social cost that the negative externality generates, and it is laid to correct the inefficient outcome of the market.

Marginal social cost: The increased cost for the society by any of the activity of an individual or firm is known as marginal social cost, it is calculated by summing up marginal external cost and marginal private cost.

Marginal social benefit: The increased benefit for the society by any of the activity of an individual or firm is known as marginal social benefit, it is calculated by summing up marginal external benefit and marginal private benefit.

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5. We learnt the following equation in the class: Ak = sy - (n + 8)k where y = ko. Now, I transform this equation into: Ak/k = sy/k - (n + 8). I want you to use a diagram to show the steady state solution of this equation (In the diagram, there will be two curves - one represents sy/k and one represents (n + 8). In the steady state, of course, Ak/k = 0). In this diagram, the x-axis is k. What will happen to this diagram if the value of n increases?

Not use ai please

3. A country has the following production function: Y = K0.2L0.6p0.2 where Y is total output, K is capital stock, L is population size and P is land size. The depreciation rate (8) is 0.05. The population growth rate (n) is 0. We define: y = ½, k = 1 and p = . Land size is fixed. L a) Find out the steady state values of k and y in terms of p, the per capita land size.

Answer 2

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Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 10, Problem 3P

To determine

Concept Introduction:

Externalities: Any external factor which causes either a benefit or loss to the producers and these benefits or losses do not get reflected in the market price of a good or service and not even reflected in the accounts of a producer, then this is known as externalities. It may be a loss for one party and gain for the other.

The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost

Pigouvian tax: This tax is laid on the market activity which indulges in generating the negative externality, it is generally set equal to the social cost that the negative externality generates, and it is laid to correct the inefficient outcome of the market.

Marginal social cost: The increased cost for the society by any of the activity of an individual or firm is known as marginal social cost, it is calculated by summing up marginal external cost and marginal private cost.

Marginal social benefit: The increased benefit for the society by any of the activity of an individual or firm is known as marginal social benefit, it is calculated by summing up marginal external benefit and marginal private benefit.

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Answer 3

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 10, Problem 3P

To determine

Concept Introduction:

Externalities: Any external factor which causes either a benefit or loss to the producers and these benefits or losses do not get reflected in the market price of a good or service and not even reflected in the accounts of a producer, then this is known as externalities. It may be a loss for one party and gain for the other.

The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost

Pigouvian tax: This tax is laid on the market activity which indulges in generating the negative externality, it is generally set equal to the social cost that the negative externality generates, and it is laid to correct the inefficient outcome of the market.

Marginal social cost: The increased cost for the society by any of the activity of an individual or firm is known as marginal social cost, it is calculated by summing up marginal external cost and marginal private cost.

Marginal social benefit: The increased benefit for the society by any of the activity of an individual or firm is known as marginal social benefit, it is calculated by summing up marginal external benefit and marginal private benefit.

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Check out a sample textbook solution

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Answer 4

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 10, Problem 3P

To determine