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Introduction
Economics is the study of how scarcity influences how resources are being used, how services and products are produced, how output and welfare rise through time, and a broad range of other complex issues that are crucial to society.
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Solved in 6 steps
- 2. Let the smoke emitted by a widget manufacturing plant is so bad that the welfare if people residing in the vicinity are being severely affected. The cost imposed on the people residing in the vicinity is estimated to be $ 100,000 while the value of production (smoke comes as a byproduct) for the plant is $ 120,000. a) Are too much, too little or the right number of widgets being produced? b) If the plant makes an offer of S 110,000 to the residents to compensate for the harmful smoke, can we conclude that the externality (if any) is internalized? c) If the plant makes an offer of S 110,000 to the residents to compensate for the harmful smoke, can we conclude that all the costs (or benefits) of the action are being considered? d) If the plant makes an offer of $ 110,000 to the residents to compensate for the harmful smoke, can we conclude that the efficient (surplus maximizing) quantity of widgets would be produced?1. Many individuals might be willing to contribute $25 to the local community charity drive if they could be assured that others would do so. Explain how the free-rider problem complicates the issue of raising money for charitable purposes. 2. Jones gets a real bargain on 100 acres of land because it is near an airport. He decides to use the land to breed his prize-winning race horses. One year after buying the land, Jones sues the airport because his horses, disrupted by the noise of jet planes, are not breeding. If you were the judge, how would you decide Jones' case? Why?28) Explain the utilitarianism principle. How is it deficient? 29) What is the "big tradeoff"?
- I need help. Match the definition.1. The table below is a list of the maximum combinations of rice and beans that the Island of Utopia can produce. combination rice beans A 1200 0 B 1100 1200 C 900 2000 D 500 2600 E 200 2900 F 0 3000 (i) Draw the production possibility frontier (PPF) for the Island of Utopia I (ii) Explain what a point on the line shows (for example point A or B, etc). Full answer required. Assume the economy starts at point D and moves to point B. Explain what is happening here. Calculate the opportunity cost.1. 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) How does market failure provide a justification for government intervention in tourism? 2) Why is community-based approach to tourism planning and why is it so difficult to implement? 3) To what extent are Dutton and Hall’s (1989) 5 mechanisms to achieve sustainable tourism development still relevant in the 21st century?The net benefit to society from reducing pollution is equal to Select one: a. the additional benefit plus the additional costs. b. the quantity of pollution, such as the tons of reduction in sulfur dioxide. c. the sum of the benefits of reducing pollution and the costs. d. the difference between the benefits of reducing pollution and the costs.1. Econcentrism encourages us to show the values of love, respect, and admiration towards our environment. How can you concretely and possibly show these values amidst ecological and climate emergency that we are suffering right now? 2. We must accept a life where solitude and loneliness have a part in search for our eternal happiness. Limitation or transcendence? 3. To live without acknowledging the help of others is to live without meaning and direction. Limitation or transcendence?
- 12Use economic criteria to compare an "emission tax" and a "cap and trade" permit system to control Sulfur dioxide (SO2) emission. In your answer, make sure that the following issues are discussed: a. The key components of each system b. The role of the government c. Whether the system achieves allocative efficiency and cost efficiency d. Whether the system achieves the desired level of pollution1. Whether the government has taken any action on Call to Action ? 2. Discuss the current status of Call to Actio