What is the tragedy of the commons? The tragedy of the commons A. occurs when two firms make a collusive agreement that is not in the best interest of society OB. is the situation that arises when the economy provides too little of a common resource OC. is a situation in which the government, elected by the common people creates inefficiency by its actions OD. is the overuse of a common resource that arises when its users have no incentive to conserve it and use it sustainably The free up of

What is the tragedy of the commons? The tragedy of the commons A. occurs when two firms make a collusive agreement that is not in the best interest of society OB. is the situation that arises when the economy provides too little of a common resource OC. is a situation in which the government, elected by the common people creates inefficiency by its actions OD. is the overuse of a common resource that arises when its users have no incentive to conserve it and use it sustainably The free up of

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 13SCQ: A country called Sherwood is very heavily covered with a forest of 50,000 trees. There are proposals...

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A country called Sherwood is very heavily covered with a forest of 50,000 trees. There are proposals to clear some of Sherwoods forest and grow com, but obtaining this additional economic output will have an environmental cost from reducing the number of trees. Table 12.11 shows possible combinations of economic output and environmental protection. Sketch a graph of a production possibility frontier with environmental quality on the horizontal axis, measured by the number of trees, and the quantity of economic output, measured in corn, on the vertical axis. Which choices display productive efficiency? How can you tell? Which choices show allocative efficiency? How can you tell? In the choice between T and R, decide which one is better. Why? In the choice between T and S, can you say which one is better, and why? If you had to guess, which choice would you think is more likely to represent a command-and-control environmental policy and which choice is more likely to represent a market-oriented environmental policy, choice Q or S? Why?
In the Land of Purity, there is only one form of pollution, called gunk. Table 12.14 shows possible combinations of economic output and reduction of gunk, depending on what kinds of environmental regulations you choose. Sketch a graph of a production possibility frontier with environmental quality on the horizontal axis, measured by the percentage reduction of gunk, and with the quantity of economic output on the vertical axis. Which choices display productive efficiency? How can you tell? Which choices show allocative efficiency? How can you tell? In the choice between K and L, can you say which one is better and why? In the choice between K. and N, can you say which one is better, and why? If you had to guess, which choice would you think is move likely to represent a command-and-control environmental policy and which choice is more likely to represent a market-oriented environmental policy, choice L or M? Why?
The “tragedy of the commons” is most likely to occur with which one of the following goods? Question 12Select one: a. A national forest b. A mineral ore deposit c. A public highway d. A city park e. A groundwater aquifer
a) Define rivalry and excludability and use these terms to discuss to discuss four categories of goods. b) What is tragedy of the commons? How can it be avoided?
Does the following activity or event create an extemality? If it does, is it an external benefit or external cost and does it arise from production or consumption? An increase in the number of people who are studying for graduate degrees creates A person who wears strong perfume to class creates, Airplanes taking off from LaGuardia Airport during the US. Open tennis tournament nearby create A sunset over the Pacific Ocean creates OA. an external cost arising from production; no externality B. an external benefit arising from consumption; an external benefit arising from consumption OC. an external cost arising from consumption; no externality D. an external benefit arising from production; an external benefit arising from consumption OA. an external benefit arising from production; an external cost arising from production оооо B. an external cost arising from consumption; an external benefit arising from consumption OC. an external cost arising from production; an external benefit…
What are the two characteristics of a common resource? give an example of a common resource and briefly explain the tragedy of the commons.
International Agreements on Trade and the Environment a. In panel A, Home enjoys positive production externalities b. In panel B, Home enjoys positive consumption externalities associated with a particular good. Label the supply and social associated with a good. Label the demand and social marginal marginal cost curves on Panel A below. benefit curves on Panel B below. Panel A: Positive production externality Panel B: Positive consumption externality 20 S SMC 20 D SMB 19 19 S 18 18 17 17 16 16 15 15 14 14 13 13 12 12 11 11 10 10 P. H P 9. 8 8. 7 7 P W 6 W 4 3 2 1 1 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Quantity Price Price
What is meant by the “tragedy of the commons”? What is the commonly owned resource that gets depleted in the Fish Banks game? Why is the resource depleted? How might the teams have prevented the tragedy from occurring?
Define the concepts of public good, non-excludable, non-rival, and tragedy of the commons.
Which of the following is an example of an externality? (x) cigarette smoke that permeates an entire restaurant (y) a flu shot that prevents a student from transmitting the virus to her roommate (z) a beautiful flower garden outside of the local post office Select one or more: a. (x), (y) and (z) b. (x) and (y) only c. (x) and (z) only d. (y) and (z) only e. (y) only
“The capacity of the earth’s atmosphere in absorbing carbon emission without a serious climate effect is a common resource. Now, we are approaching the tragedy of commons in the form of severe climate change by excessive carbon emission.” Explain whether you agree with this statement around 150words
Mankiw Chapter 11 2 b Are the externalities associated with common resources generally positive or negative? Use examples in your answer. Is the free market use of common resources generally greater or less than the efficient use?