2. Indicate whether the following activities create a positive or negative externality: arken d. A student uses her cell phone discreetly during class. e. You and your friends volunteer to plant wildflowers along the local highway.
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- tidterm Exam #2 Alternative Back to Assignment Attempts 3. Keep the Highest 3/4 S. Externalities - Definition and examples 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 extemality. 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. af the social cost of producing the good is not egual to the private cost, then you should drag the supply curve to reflecet the social costs of producing the good; simiarly, f the social value of producing the pood is not equal to the private value, then you should drag the demand curve to reflect the social value of consuming the good. Supply Demand…Asap plz... Use a diagram and explain how the total net benefit will be changed if an externality exists in a market1-) Can an activity generate both positive and negative externalities at the same time? Give anexample from your life and explain your answer.
- Which of the following are examples of negative externalities? A. Reduced spread of COVID-19 and other infectious diseases from people physically distancing and wearing masks. B. Unsightly oil rigs offshore from Santa Barbara, diminishing the quality of the view for beachgoers and coastal homeowners. C. Reduced incidence of the common flu stemming from more people obtaining flu shots during the Fall. D. Reduced crime rates stemming from rapid economic growth and reduced unemployment. E. High gas prices caused by rapid demand growth in China. F. Job losses associated with a factory closure in the United States, because a factory was opened in Mexico to replace it. G. Noise from traffic on a busy street. H. Light pollution from cities making it more difficult for observatories to view distant stars. I. Noise pollution eminating from windmills on the North Shore of Oahu. J. Pollution emissions from power plants.1. If you were to graph a measure of pollution on one axis and a level of economic activity (such as the real gross domestic product per person) on the other, what type of relationship do you think you would find? How would you explain this relationship? 2. Think of an externality that arises in a college dorm. What market can you think of that would (or could) eliminate any inefficiencies from that externality?See each of the following characteristics or scenarios about externalities. Choose a correct answer whether each statement matches with the term negative externality or the term positive externality. a. Resources are overallocated. ( Positive, Negative) externality く-ー b. Gini installs a very nice front garden, raising the property values of all the other houses on her block. -- ( Positive, Negative) externality c. Market demand curves are too far to the left (too low).<-- ( Positive, Negative) externality d. Resources are underallocated. <-- ( Positive, Negative) ternality Blank # 1 Blank # 2 Blank # 3 Blank # 4
- A local school administrator observes an increase in the number of flu cases in the public schools over the last two years. She is concerned that some families cannot afford flu vaccine and are therefore not having children vaccinated. She is also concerned that the failure to vaccinate some children is putting other children at risk, so she proposes that the state subsidize vaccines to increase coverage rates. a. Determine whether the failure to vaccinate some children is an external benefit or an external cost. If an external cost is present, move point A and point B to show the marginal social cost curve. If an external benefit is present, move point A and point B to show the marginal social benefit curve. Place point C at the equilibrium outcome. Place point D at the socially optimal outcome. Flu vaccines A B D Supply (marginal private cost) PriceDefine externalities. Also give an example of a negative externality3. The total (abatement) cost for cutting down on CO2 by R is C(R) = 7R²+10R. The total benefit of CO2 abatement to the society is B = 100R.. Compute the socially optimal level of abatement (pollution control).
- 9. Give an example of positive externality. Explain.Q: The consumption of pies doesn't generate any externalities, but the production of pies generate positive externalities. A. Draw a diagram of a positive externality that occurs in production. Please be sure to label all of your curves and axes, explain the market quantity and the efficient quantity and what area is the dead weight loss. B. Explain, in a sentence or two, why there might be a positive externality associated with the production of Pies.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?