QUESTION 9Which of the following can be concluded from the information presented in the graph?PRICE OF EDUCATIONIl onlyonlyIIIand IIIOI and IIIMarginal Social Cost0200Marginal Social BenefitMarginal Private Benefit1. Consumption of education has a positive externality.II. Quantity of education consumed in a private market is less than the socially optimal amount.III. Producers of education should be taxed.O I onlyQUANTITY OF EDUCATION

Marginal social cost refers to the additional cost imposed on society by producing one more unit of…

QUESTION 9 Which of the following can be concluded from the information presented in the graph? PRICE OF EDUCATION Marginal Social Cost Marginal Social Benefit Marginal Private Benefit QUANTITY OF EDUCATION 1. Consumption of education has a positive externality. imod in a privato market is less than the socially optimal amount

QUESTION 9 Which of the following can be concluded from the information presented in the graph? PRICE OF EDUCATION Marginal Social Cost Marginal Social Benefit Marginal Private Benefit QUANTITY OF EDUCATION 1. Consumption of education has a positive externality. imod in a privato market is less than the socially optimal amount

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Identify situations where free riding problem in consuming public good or common resource/good is demonstrated/displayed. Explain how it is a free-riding problem.
Part d-g
Next question Which of the following is an example of a positive externality? A. A lower inflation rate would benefit most consumers. B. Compulsory flu shots for all students prevents the spread of illness in the general public. C. Promoting generic drugs would benefit people. D. Singapore has adopted a comprehensive savings plan for all workers known as the Central Provident Fund.
riants/950243/take/17/ MULTIPLE CHOICE Question 16 Jason lives near the county fairgrounds. Every year when the fair is open, the traffic on his street is terrible, the lights and noise from the fair keep him awake at night, and the odors from the animal barns reach his property. What is Jason experiencing? A B C non-rivalrous externality. exclusive externality positive externality D negative externality 555555558. రరరరరరరరరరరరరం-ర 7 Total Questions Answered All Changes Saved < @ ☆ ☆ *@*** Conti
Externalities - Definition and examples An externality arises when a firm or person engages in an activity that affects the wellbeing of a third party, yet neither pays nor receives any compensation for that effect. If the impact on the third party is adverse, it is called a ___________ externality. The following graph shows the demand and supply curves for a good with this type of externality. The dashed drop lines on the graph reflect the market equilibrium price and quantity for this good.
The over-allocation or over production of goods and services leads to market failure and unsustainable development.What is an appropriate diagram to represent this statement?