Q2-a.Which are the three forms of social welfare we currently benefit from? Please include their definition, and who can benefit from it. Q2-b.in clear details, please discuss the differences among these various social welfare benefits; including information about which of the services are the most utilized, and the lease utilized, by society and why?
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- Write down a model of positive production externality with two firms, in which theproduction activities of one firm directly affects the production/cost of the other firm.State and explain the key assumptions of the model. Using the model, answer thefollowing questions:(a) Explain why the presence of a positive production externality could prevent therealisation of an efficient outcome.(b) Name a possible cure for the positive production externality and explain how itcould solve the inefficiency problem.What is an externality?What are four responses to the claim that people should not behave in the way described in this chapter?
- In what ways (it) company investments in research and development create positive externalities?Imagine a scenic canyon, visited by many local people as well as tourists from beyondthe local area. Consider a scenario in which a mining company has proposed to the localauthority that it be closed to the public and put into the production of coal. Thinking interms of economics as a way of adjudicating the relative value of one use of the canyon overthe other, what would you need to know in order to make a comparison or assessment?What kinds of quantitative data would inform your decision, and where might they comefrom? What kinds of things might you need to know that are hard to measure? Once youhave listed the kinds of information and data that might be available to inform this decision, do you think it would be sufficient to making this decision, why or why not?Table 1Buyer Willingness To PayLori $50.00Audrey $30.00Zach $20.00Calvin $10.002. Refer to Table 1. If the price of the product is $15, then who would be willing to purchase theproduct?a. Lorib. Lori and Audreyc. Lori, Audrey, and Zachd. Lori, Audrey, Zach, and Calvin3. Refer to Table 1. If price of the product is $30, then the total consumer surplus isa. $-10.b. $-6.c. $20.d. $30.
- F Select v Paragraph Styles Editing 91 10 L 11 1 12 1- 13I · 14 I 15. 16 I 17 1 18 Ser 1.1 4 51. 6 7 81 19 1 Question 8 Read the following scenario and answer the succeeding questions. Scenario 61 A young entrepreneur from Belville, identified a gap in the market for selling quality firewood. The best wood, according to the entrepreneur, is from the Northern Cape. The entrepreneur located a supplier willing to sell a bag of firewood for R28.00. To transport the wood to Belville, the entrepreneur hired a transportation truck that can accommodate 1 200 bags per trip from the Northern Cape to Belville. The transportation cost per bag is priced at R3 and the labour employed to unload the truck at R7.50 per bag. The entrepreneur will set the selling price at R70.00 per bag. For scenario 6, answer the following questions: 8.1 Calculate the total cost per bag of wood 8.2 If the entrepreneur sells 1 200 bags of wood at R70.00 per bag, what will the revenue for the entrepreneur be? 8.3 If the…In 2006, the Australian Government incorporated research into corporate social responsibilities to determineif there is a need to include social and environmental responsibilities within the Corporation Act throughamendment procedure. It was decided not to incorporate a particular regulation through legislation, insteadrely upon the 'market forces' to encourage companies to do the 'right thing'. This viewpoint was expressedthat if companies did not look after the environment or did not act in a socially responsible manner, peoplewould not want to consume the organisations' products. From the equity market perspective, potentialinvestors would not want to invest in the organisations, and further workers wouldn't want to work for them,and so forth. Because companies were aware of such market forces, they would do the 'right thing' even inthe absence of legislation.Requirement:1) Using theories such as Public Interest Theory, Capture Theory and Economic Interest Group Theoryto critically…The figure shows the market for auto insurance. Progressive Auto Insurance offers applicants to temporarily install its Snapshot device to monitor driving habits prior to signing up for insurance. This practice should result in paying a premium of Premium (dollars per year) MCRisky per year. 900 O A. 100 million safe drivers; $900 700 B. 120 million safe drivers; $700 MCsafe C. 80 million unsafe drivers; $900 500 D. 100 million drivers; $700 O E. 80 million safe drivers; $500 100 120 Policies (millions) 80 O O O
- The figure shows the market for car insurance. If the companies can't determine who is a safe or an unsafe driver, Premium (dollars per year) drivers are insured at a premium of A. only safe drivers: $800 B. 150 safe and unsafe; $1,000 O C. 150 unsafe; $1,000 1000 O D. only 100 unsafe drivers; $800 800 O E. only safe drivers; $1,000 DSafe 0. 100110 150 Policies (millions)Suppose that you are an economic-policy advisor. Environmental groups are pressuring you toimplement the highest-possible carbon tax, whileindustry groups are pressuring you to implementno carbon tax at all. Both argue that their positionmakes more sense economically. Explain to themwhat the most-efficient tax level will be, and whythere are costs to setting the tax too high or toolowWhat is productive efficiency? Allocative efficiency?