Graphically, the effects of an external benefit can be shown as OA. a leftward shift of the market demand curve. OB. a leftward shift of the market supply curve. C. a downward movement along the market demand curve. OD. a rightward shift of the market demand curve.
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- Provide examples of externalities. Question 2 of 27 Littering while hiking is an example of a externality. A firm doing research and development which can be used by other firms is an example of a OA. negative consumption; positive production B. positive consumption; negative production C. positive production; negative consumption D. negative production; positive consumption externality.Cap and trade is a __--- based plan. A limit is placed on emissions and prices are established in emissions permit markets. Emission taxes are a based policy. A fee on emissions is set and the quantity of emissions is adjusted as polluters react to the fee. a. behavior; technology b. technology; behavior c. quantity; price d. price; quantityMarket Failure. a. State the definition of a market failure, b. List and explain the 4 causes of market failure included in the slides, including how they actually lead to over or under allocation of resources (market failure). Don’t miss this part! Must be very specific. c. State the definition of spillovers costs
- Instructions There is often a temptation to take a dim view of profits. Some people seem to believe profits come at the expense of buyers. It is easy to reason that if profits were lower, prices could be lower thus benefiting consumers. a. What are economic profits? Explain in detail. b. Do economic profits harm the interests of consumers? Explain in detail. c. Can there be a socially useful outcome when economic profits exist? Explain in detail. d. Do lower prices always benefit consumers? Explain in detail.a. The socially optimal level of production is ____units. b. But, the market will end up producing ____units a. The socially optimal level of production is how many units? b. The market will end up producing how many units?Please answer the following questions.1. Explain the factors affecting Demand.2. Explain the difference between positive and negative externalities alongwith an example.3. How are public goods different from private goods?4. Explain the Law of Supply.5. With regard to demand and Supply, explain the point of MarketEquilibrium.
- The graph shows the competitive market for fitness trackers. Draw a point that shows the efficient quantity of fitness trackers and the marginal social benefit and marginal social cost at the efficient quantity. Label it Efficient. Choose the statement that is correct. O A. At the competitive equilibrium, the market for fitness trackers achieves allocative efficiency. B. If production in the market for fitness trackers is less than the equilibrium quantity, the marginal fitness tracker costs more to produce than the value that consumers place on it. OC. The competitive market pushes the quantity of fitness trackers produced beyond its efficient level. O D. The market for fitness trackers is not in the social interest because buyers and sellers act only in their self-interest. 240- 200- 160- 120- 80- 40- 0- Price (dollars per fitness tracker) 0 D 2 6 8 10 12 14 16 Quantity (millions of fitness trackers per year) >>> Draw only the objects specified in the question. SWhich type of externalities does the lumber industry have when more trees are planted? A. Negative externalities in consumption. B. Positive externalities in production. C. Positive externalities in consumption. D. Negative externalities in production. E. Pecuniary externalities. F. No externality problem. OB OA OC OE OF1. What is market failure? Explain in your own words. 2. Why do markets fail. List two reasons and explain them in your own words. 3. Explain what an external effect (also known as an externality) is in your own words. 4. List four examples of externalities 5. Explain what a social dilemma is and list one example of a current social dilemma.
- 1. For each of the goods listed below, discuss whether the good is likely to entail an external cost or an external benefit. Additionally, explain if the market is likely to produce more or less than the social optimal. a. Vaccinations b. Cigarettes c. Antibiotics d. Sriracha sauceQuestion 1. What is meant by "the market system?" Question 2. How is the market system justified? Question 3. What, exactly, is "fraud?" Quesetion 4. What is an "externality?" Question 5. What is "market failure?"1. Externalities. Answer true or false, and give a brief explanation (one sentence only). a. Pollution is a negative externality. b. The regional job creation impact of opening a new hotel is an example of an externality. c. Externalities are a form of market failure only if they are negative externalities. d. When there is a positive externality, one way to improve social welfare is to subsidize the good. e. The marginal social cost includes the marginal costs of production incurred by the firms producing the good. f. If the social cost of an additional (marginal) unit is higher than the social benefit, then society would be better off if that extra unit were produced.