$8.00 is required for spectators who want to have a great view of the competition. However, residences near the competition can also watch the firework displays even without paying for the $8.00 entrance fee. 1. Fireworks display is considered a common good. 2. Fireworks display is non-excludable and non-rivalrous. 3. Fireworks display is non-rivalrous but excludable. Which of the above statements are true? Only 1 is true. Only 2 is true. Only 3 is true. Both 1 and 2 are true. Both 1 and 3 are true.
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Economics
A fireworks competition is happening in Sydney this November. An entrance fee of $8.00 is required for spectators who want to have a great view of the competition. However, residences near the competition can also watch the firework displays even without paying for the $8.00 entrance fee.
1. Fireworks display is considered a common good.
2. Fireworks display is non-excludable and non-rivalrous.
3. Fireworks display is non-rivalrous but excludable.
Which of the above statements are true?
Only 1 is true. | ||
Only 2 is true. | ||
Only 3 is true. | ||
Both 1 and 2 are true. | ||
Both 1 and 3 are true. |
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Solved in 4 steps
- Refer to Figure. The graph represents a market in which 24 22 22 Price 18 16 81 Social cost (private cost and external cost) Supply (private cost) Demand (private valne) 120 160 Quantity a. Othere is no externality. b. Othere is a positive externality. c. Othere is a negative externality. d. The answer cannot be determined from inspection of the graph.What Factors Influence Perfect Competition for Environmental Economic Market Structures. 2. Which Buyers and Sellers Influence Environmental Economic Markets. 3. Externalities in Your Current Home Country Environmental Economic Market. 4. How Governments Address the Existence of Negative Externalities in Environmental Economic Markets. 5. Profitability Associated with Environmental Policy Research.1. Choose one of the approaches listed below for protecting elephants from poachers in African countries. A. The government sets up enormous national parks that have sufficient habitat for elephants to thrive and forbids all local people to enter the parks or to injure either the elephants or their habitat in any way. B. The government sets up national parks and designates ten villages around the park's edges as official tourist centers that become places where tourists can stay and bases for guided tours inside the national park. 2. Depending on the approach you have chosen (A or B), explain how the incentives will affect the local villagers, who are often very poor. 3. Which approach (A or B) seems more likely to help the elephant population?4. Discuss the practice of poaching elephants and the need for environmental protection? 5. Explain how the practice of poaching elephants is a negative externality?
- Economics Which of the following statements is TRUE? I. In the face of a negative externality, a monopolistic market produces less than the socially optimal quantity of output. II. If public transport creates an external marginal benefit, the marginal social benefit of public transport services will always exceed their private marginal benefit. III. In unregulated markets, positive externalities create deadweight losses, but negative externalities do not. IV. In the face of a positive externality, a perfectly competitive market produces more than the socially optimal quantity of output. II and IV are correct II only is correct I and III are correct I and IV are correct Ensure that you provide an appropriate rationale for the answer provided included marking use of appropriate diagrams where possible.1. Governments and pharmaceutical companies rushed quickly ahead to develop a vaccine. Vaccinations and immunizations are examples of positive externalities. A positive externality is when an activity creates a benefit for those who are not involved in the transaction, a third party. Let’s examine the vaccination of Covid-19 as a positive externality. Question: Why is the Covid-19 vaccination considered a positive externality? 2. Considering the information provided and your responses to Question 3 explain the potential unintended consequences of each one of these polices. Which policy would you enact and why?Which one does not belong to the externalities contributed by oil? a. Emissions that pollute the environment. b. National security c. Hydrocarbons that potentially contribute to climate d. Mercury emission from burning oil to produce electricity.
- Assume the following: • market quantity < socially desirable The inequality above describes which of the following? O a. Budget Surplus O b. Positive Externality c. Budget Deficit d. Negative Externality QUESTION 6 In order to internalize a negative externality the government should implement a O a.subsidy b. free for all c. bidding war d. tax QUESTION 7 In order to internalize a positive externality the government should implement a a. minimum wage b. tax c. subsidy d. spoils systemParagraph Styles ILOS: A2, C2 Editing Voice 4. The paper industry has the demand and supply curves shown below: Price of paper Quantity demanded Quantity supplied 80 40 70 50 4 60 60 50 70 a. Suppose that this industry results in extreme externalities. What can be said about its optimal output? b. Draw the supply and demand curves for paper. Does the supply curve reflect the true social costs of producing the product? If not will a supply curve reflecting the true social costs lies above or below the supply curve you have drawn? c. What is the equilibrium price of paper? From the point of view of reflecting the true social costs, is this price the correct one, or too low or too high?10. A local drama company proposes a new neighborhood theater in San Francisco. Before approving the permit, the city planner completes a study of the theater's impact on the surrounding community. a. One finding of the study is that the theaters attract traffic, which adversely affects the community. The city planner estimates that the cost to the community from the extra traffic is $5 per ticket. What kind of an externality is this? Why? b. Graph the market for theater tickets, labeling the demand curve, the social-value curve, the supply curve, the social-cost curve, the market equilibrium level of output. Also show the per-unit amount of the externality. c. Upon further review, the city planner uncovers a second externality. Rehearsals for the plays tend to run until late at night, with actors, stagehands, and other theater members coming and going at various hours. The planner has found that the increased foot traffic improves the safety of the surrounding streets, an estimated…
- 4. The advantages of command-and-control environmental regulations used in the 1970's include: a. the provision of incentives to go beyond prescribed limits b. great flexibility in how and where to make pollution reductions c. proven success in reducing levels of pollution d. all of the above 6. With regard to international environmental issues, the Openstax text argues that: a. high income countries should use their superior economic position to force low income countries to reduce pollution b. climate change is too important of an issue to leave it to a market-oriented approach for a solution c. the practical details of an international solution are forbiddingly complex d. all of the above 7. According to the Openstax text: a. Increased environmental protection reduces economic output b. Environmental protection measures usually enhance economic output c. Increased environmental protection only reduces economic output in poorer countries d. Environmental protection measures only…1. Production of widgets results in emissions of a harmful pollutant, at a rate of 1 ton of pollution per widget produced. The marginal cost of producing widgets is $4 per widget. The demand curve for widgets is 9 - Q, where Q is the quantity of widgets. The widget market is competitive, such that both consumers and producers are price takers. The government is considering policies to address this negative externality. a. The first policy being considered is a technology standard. The abatement techonol- ogy being required costs $2 per widget. What is the social cost of this policy? b. The marginal damages of the pollutant are constant and valued at $1 per ton. What are the social benefits of the technology standard? c. Would the technology standard represent an improvement in economic efficiency for society? Why or why not? d. Now assume that the policy maker imposes a Pigouvian tax on the emissions of the pollutant. What are the social benefits of this policy? e. What are the net…Tradable pollution permits a. set the price of pollution. b. set the quantity of pollution. c. determine the demand for pollution rights. d. reduce the incentive for technological innovations to further reduce pollution.