Take a look at the figure below: Price Ps+ Pp This diagram shows a positive consumption; Qs negative production; Qp Ep I Es I I Qp Qs MCs = MBp MCp MBS Pick one Quantity externality, where the socially optimal level of production is
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Easy econ question, multiple choice (2 options)
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- a. According to Economist Vilfredo Pareto, a condition of ‘Pareto Optimality’, which refers to efficient allocation of natural resources such that no reallocation of resources of such could benefit any person without lowering the net benefits for at least one other person, cannot be attained in the presence of Externalities. Explain how externalities affect the condition of Pareto Optimality using suitable examples of each type of the externalities.Define social benefit.If there are no externalities or market power and all markets are in equilibrium, what conclusions can we draw from this in economic theory?
- What is the socially optimal quantity, and how much is the social cost at this quantity?From CNN what news article represents an issue ragards to Externalities or that can be realted to externalities? Cite at least one source (News Article, Video, etc.) for any data. Explain: What is the Economic issue? (Describe the issue) What is the connection to Externalities? (positive, negative, policy) (Use Math, Graph or data to explain or support your idea) Explain how this affects the Economy (individual, industry, national or global)24. When a good or service is Non-Rival and Non-Excludable, it is is classified as a a) Private Good b) Externality e) Club Good d) Public Good 25. An economist reasons as follows: "Time spent at home taking care of a child is time not spent earning income, so the opportunity cost of having a child includes the potential wage earnings women give up by parenting." Assuming we agreed with this, and that women enjoy children (and/or invest in them to be taken care of in retirement), we would conclude that, all else equal: b) a) in societies were wages for women's work is low, women are likely to choose to have more babies. in societies were wages for women's work is low, women are likely to choose to have fewer babies. women have too many children in poor countries economists cannot make any predictions about the determinants of population growth. c) d) 26. Digital music files can be easily and almost withor duplicated and transmitted to thousands of users who download them via free…
- From the book: Omnivore's Dilemma, chapters 9-12 for a discussion board A) In an economic transaction between a producer and a consumer, an externalized cost or (negative) externality is a cost to someone who is not involved in the transaction. For example, the consumer doesn't pay for it, and the producer doesn't pay for it. Joel Salatin alludes to this concept when he talks about food that is not “honest.” List three externalized costs associated with food production (and consumption), and try to identify the third part(ies) likely to pay for each. Which cost on your list concerns you the most?Please label the graph point where the socially optimal equilibrium isWhat is an externality? Provide two examples each of positive and negative externalities.
- The figure below shows a market in which there is an externality. The curve S2 is parallel to S1. Areas in the figures are numbered. What type of externality is shown in the figure and why is it a problem in economics? Identify the market equilibrium and the social equilibrium in the figure. If the market were to move from the market equilibrium to the social equilibrium, indicate the area(s) that represent the change in consumer surplus, the change in producer surplus, the change for third parties, and the net effect on total surplus. Does total surplus rise or fall? What would be the amount of a per-unit tax needed to fix the externality?Give an example of a negative externality and anexample of a positive externalityAssume a market for fertilizers, and let D denote the demand of fertilizers while S their supply. The inverse demand is p = 10 - q, and the supply is MC = q. The marginal damage created by runoff water being exposed to fertilizers is MEC = q/2 The use of fertilizers is creating an externality and the government wishes to intervene in the market. Use a figure to depict the competitive outcome. Derive the competitive equilibrium outcome. Use a second figure to explain the negative externality attributed to the use of fertilizers. The use of fertilizers improves yield, but it also damages the underground aquifer. What is the Pigovian Tax? Use a figure to explain. Can it be used to correct for the externality? Derive the Pigovian tax and characterize the social optimum solution. Can a standard achieve the social optimum? What about a quota? Explain using a figure. Explain and show step-by-step!
