Citizens of Veridiania love eating and looking the flowers that grow in the town center. The workers in Veridiania can spend their time planting and tending flowers to enjoy or growing food for consumption. A worker in Veridiana can grow 2 bushels of food in a day or tend 100 flowers. The 15 residents of the city are each willing to forgo the consumption of 1 bushel of food for the enjoyment of 500 extra flowers. What are the private and public goods in this example? What is the MRS=MUfood/MUflowers? (How many flowers are they willing to give up to get one more bushel of food?) What is the MRT=MCfood/MCflowers (What is the cost of one bushel of food in terms of flowers given up? Is this allocation Pareto efficient? Should workers spend more or less time planting flowers? Why? If this allocation is not P.E., is government intervention necessary? Why or why not?

Citizens of Veridiania love eating and looking the flowers that grow in the town center. The workers in Veridiania can spend their time planting and tending flowers to enjoy or growing food for consumption. A worker in Veridiana can grow 2 bushels of food in a day or tend 100 flowers. The 15 residents of the city are each willing to forgo the consumption of 1 bushel of food for the enjoyment of 500 extra flowers. What are the private and public goods in this example? What is the MRS=MUfood/MUflowers? (How many flowers are they willing to give up to get one more bushel of food?) What is the MRT=MCfood/MCflowers (What is the cost of one bushel of food in terms of flowers given up? Is this allocation Pareto efficient? Should workers spend more or less time planting flowers? Why? If this allocation is not P.E., is government intervention necessary? Why or why not?

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter16: Government Spends, Collects, And Owes

Section: Chapter Questions

Problem 7AA

See similar textbooks

Similar questions

Categorize each of the following five goods as a Private Good, Common Good, Club Good, or Public Good. Descriptions of each good will serve as hints. Remember, our textbook outlines only two types of goods, see the notes and lecture video for the other two types. a) An NPR (radio) signal - which is available to everyone with a radio, whether or not they contribute, the signal does not diminish no matter how many people tune in. [Select] b) A new Ford truck this can only be purchased by one person, you can not drive it off the lot without paying for it. [Select] c) A subscription to Disney+ - you can not have a subscription without paying for it, purchasing a subscription does not lower the total number of subscriptions available. [ Select] d) A fireworks show on the 4th of July - the fireworks are visible to everyone in the town, whether or not they contributed anything to the display, one person viewing the fireworks does not make them less visible for anyone else. [Select] e) A…
Define public and private goods
Difference between public and private goods
Which goods are sold in the markets? private goods public goods private goods and club goods private good, club goods, and common- resource goods all types of goods
The government wants to increase ecotourism by using farmland to establish special habitats for endangered species. The government will pay farmers half the revenue per acre of habitat that farmers would have received if they had grown wheat on that land. The average wheat yield per acre is 6363 bushels. The average price of a bushel of wheat is $3.76$⁢3.76.How much would the government pay a farmer who wants to establish a habitat on 44 acres of land? Enter your answer in the box below and round to two decimal places if necessary.
Spring is here, and Larry and his uncle would like to go fishing for the weekend in Washington. Larry could either go to the river in town where anyone can fish without a permit, or he could drive up to a pond located on his family's property in the countryside to fish. Assume that, no matter where people fish, all of the fish that are caught would be kept (that is, there is no "catch and release" policy). The fish in the private pond are considered and whereas the fish in the river are and . In other words, the fish in the private pond are an example of , and the fish in the river are an example of . Fishing in the river will likely lead to because of which of the following reasons? All fishermen will choose to fish in the pond believing that there are more fish there. All fishermen will choose to fish in the river because of the limited access to the pond. Nobody will enjoy fishing because of the lack of private contributions…
Outline the budgetary process and explain the role that politics plays.
Do you think it is possible to draw a clear distinction between private and public goods? Which of the following might be considered public goods: farmland, forest land, beach front property, highways, a city park, a parking lot, a sports arena? What rules of the market or of public policy should apply to the provision of these goods?
Why do some people oppose the state of food and agriculture of 2021?
What is a resource that you share with your family or neighbors? Is it being over-consumed? And if not, what is preventing people from over-consuming it?
What are public and private goods?
Functions of the Environment