5. Common resources versus private goodsSpring is here, and Brian and his grandfather would like to gofishing for the weekend in Vermont. Brian could either go tothe river in town where anyone can fish without a permit, orhe could drive up to a pond located on his family's propertyPRIVATEPROPERTYin the countryside to fish. Assume that, no matter wherepeople fish, all of the fish that are caught would be kept (thatis, there is no "catch and release" policy). rival in consumptionv andwhereas the fish in the private pond areThe fish in the river are consideredexcludablerival in consumptionv andexcludableIn other words, the fish in the river are an example of a common resource ▼, andthe fish in the private pond are an example ofa private goodFishing in the river will likely lead tobecause of which of the following reasons?O All fishermen will choose to fish in the river because of the limited access to the pond.O Nobody will enjoy fishing because of the lack of private contributions to the maintenance of the river.O Anyone can fish in the river, and one person's fishing activity decreases the ability of someone else to fish with success.O All fishermen will choose to fish in the pond believing that there are more fish there.

Answers: Introduction: The river is a public good whereas the pond is a private good. Public goods…

The fish in the river are considered_ rival in consumption rival in consumption v and_ excludable the fish in the private pond are an example ofa private good and_ excludable . In other words, the fish in the river are an example of a common resource whereas the fish in the private pond are and Fishing in the river will likely lead to because of which of the following reasons? All fishermen will choose to fish in the river because of the limited access to the pond. Nobody will enjoy fishing because of the lack of private contributions to the maintenance of the river. Anyone can fish in the river, and one person's fishing activity decreases the ability of someone else to fish with success. All fishermen will choose to fish in the pond believing that there are more fish there.

The fish in the river are considered_ rival in consumption rival in consumption v and_ excludable the fish in the private pond are an example ofa private good and_ excludable . In other words, the fish in the river are an example of a common resource whereas the fish in the private pond are and Fishing in the river will likely lead to because of which of the following reasons? All fishermen will choose to fish in the river because of the limited access to the pond. Nobody will enjoy fishing because of the lack of private contributions to the maintenance of the river. Anyone can fish in the river, and one person's fishing activity decreases the ability of someone else to fish with success. All fishermen will choose to fish in the pond believing that there are more fish there.

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 10SCQ: Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table 12.8 shows the...

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Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table 12.8 shows the total costs of cleaning up the sewage to different levels, together with the total benefits of doing so. (Benefits include environmental, recreational, health, and industrial benefits.) Using the information in Table 12.8, calculate the marginal costs and marginal benefits of reducing sewage emissions for this city. See Production, Costs and Industry Structure if you need a refresher on how to calculate marginal costs. What is the optimal level of sewage for this city? Why not just pass a law that films can emit zero sewage? After all, the total benefits of zero emissions exceed the total costs.
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?
. Both Wisconsin and Illinois border Lake Michigan. The lake is becoming polluted and both states are deciding whether or not to clean it. If Wisconsin decides to clean the lake it will cost 1200 and generate social benefits of 1500 – however, Wisconsin will receive only 1100 of those social benefits while neighbor Illinois will receive the other 400. If Illinois cleans the lake, it will cost them 700 and generate social benefits of 900 – however, Illinois will receive only 600 of those benefits, Wisconsin will receive the remaining 300. If a state does not clean the lake, it experiences a cost of $0. If both states clean the lake, the payoffs will be A. Wisconsin gains 100, Illinois gains 200B. Wisconsin gains 200, Illinois gains 300C. Wisconsin gains 200, Illinois loses 100D. Wisconsin gains 100, Illinois loses 100
5. Common resources versus private goods Spring is here, and Gilberto and his uncle would like to go fishing for the weekend in New Hampshire. Gilberto could either go to the river in town where anyone can fish without a permit, or he could drive up to a pond located on his PRIVATE PROPERTY family's property in the countryside to fish. Assume that, no matter where people fish, all of the fish that are caught would be kept (that is, there is no "catch and release" policy). The fish in the river are considered and whereas the fish in the private pond are v and . In other words, the fish in the river are an example of and the fish in the private pond are an example of Fishing in the river will likely lead to because of which of the following reasons? O Nobody will enjoy fishing because of the lack of private contributions to the maintenance of the river. O Anyone can fish in the river, and one person's fishing activity decreases the ability of someone else to fish with success. O All…
22. Both Wisconsin and Illinois border Lake Michigan. The lake is becoming polluted and both states are deciding whether or not to clean it. If Wisconsin decides to clean the fake it will cost 1200 and generate social benefits of 1500 however, Wisconsin will receive only 1100 of those social benefits while neighbor Illinois will receive the other 400. If Illinois cleans the lake, it will cost them 700 and generate social benefits of 900 â€" however, Illinois will receive only 600 of those benefits, Wisconsin will receive the remaining 300. If a state does not clean the lake, it experiences a cost of $0. If Wisconsin does not clean the lake and Michigan does then the payoffs will be
7. Common resources versus private goods The fish in the private brook are considered and and the fish in the lake are an example of are Outdoors season is underway in Maine, and Taylor and her childhood friends are planning a weekend fishing trip. They have the choice between fishing the lake near town where anyone is allowed to fish without a permit, or they could drive a short distance to a brook located on a family friend's property in the woods. Assume throughout the problem that all fish caught in either body of water are free for those fishing to keep. of I Fishing in the lake will likely lead to and PRIVATE PROPERTY whereas the fish in the lake In other words, the fish in the private brook are an example because of which of the following reasons? All fishermen will choose to fish in the brook believing that there are more fish there. Nobody will enjoy fishing because of the lack of private contributions to the maintenance of the lake. All fishermen will choose to fish in the…
4. Cost-benefit analysis A local college is deciding whether to conduct a campus beautification initiative that would involve various projects, such as planting trees and remodeling buildings, to make the campus more aesthetically pleasing.s and Thus, the visual appearance would For the students of the college, the visual appearance of the campus is be classified as a public good. Suppose the college administrators estimate that the beautification initiative will cost $2,040. To decide whether the initiative should be undertaken, administrators conduct a survey of the college's 420 students, asking each of them their willingness to pay for the beautification project. The average willingness to pay, as revealed by the survey, is $12. The benefit of the beautification initiative, as suggested by the survey, is $ Because the estimated benefit is than the cost, the college administrators undertake the beautification initiative. The calculation of the benefit of the beautification…
9. Best responses for individual contributions to a public good Dmitri and Frances each rent one unit of a two-unit apartment building. The building has two separate furnaces located between the two apartments. The renters each control and pay for the heat their furnaces generate and would choose to increase the temperature of their apartments by 30 degrees if the other never turned on their furnace, given that the marginal private benefit (MB) of the 30th degree is equal to the marginal cost (MC) of 1 degree of heat (assume that the MC of heat is constant and that the MB of heat is decreasing). However, each degree of heat paid for by one not only raises the temperature in that apartment by a degree but also raises the temperature in the other apartment by half a degree. As a result, if Frances were to buy 40 degrees of heat, then Dmitri would need to purchase only |degrees of heat before his personal marginal benefit of the final degree was equal to the marginal cost. Use the blue…
11 When performing a benefit cost analysis of different options to provide clean water to a community, the option that should be chosen is the option that maximizes the benefit to cost ratio. True or False?
3. Voluntary contributions toward a public goodLarry and Raphael are considering contributing toward the creation of a public park. Each can choose whether to contribute $400 to the public park or to keep that $400 for a new suit.Since a public park is a public good, both Larry and Raphael will benefit from any contributions made by the other person. Specifically, every dollar that either one of them contributes will bring each of them $0.80 of benefit. For example, if both Larry and Raphael choose to contribute, then a total of $800 would be contributed to the public park. So, Larry and Raphael would each receive $640 of benefit from the public park, and their combined benefit would be $1,280. This is shown in the upper left cell of the first table.Since a new suit is a private good, if Larry chooses to spend $400 on a new suit, Larry would get $400 of benefit from the new suit and Raphael wouldn't receive any benefit from Larry's choice. If Larry still spends $400 on a new suit and…
8. Best responses for individual contributions to a public good Larry and Megan each rent one unit of a two-unit apartment building. The building has two separate furnaces located between the two apartments. The renters each control and pay for the heat their furnaces generate and would choose to increase the temperature of their apartments by 30 degrees if the other never turned on their furnace, given that the marginal private benefit (MB) of the 30th degree is equal to the marginal cost (MC) of 1 degree of heat (assume that the MC of heat is constant and that the MB of heat is decreasing). However, each degree of heat paid for by one not only raises the temperature in that apartment by a degree but also raises the temperature in the other apartment by half a degree. degrees of heat before his personal As a result, if Megan were to buy 10 degrees of heat, then Larry would need to purchase only marginal benefit of the final degree was equal to the marginal cost. Use the blue line…
4. Common resources versus private goods Outdoors season is underway in Maine, and Tiana and her cousins are planning a weekend fishing trip. They have the choice between fishing the lake near town where anyone is allowed to fish without a permit, or they could drive a short distance to a brook located on a family friend's property in the woods. Assume throughout the problem that all fish caught in either body of water are free for those fishing to keep. The fish in the private brook are considered and whereas the fish in the lake are and . In other words, the fish in the private brook are an example of , and the fish in the lake are an example of . Fishing in the lake will likely lead to because of which of the following reasons? All fishermen will choose to fish in the brook believing that there are more fish there. Nobody will enjoy fishing because of the lack of private contributions to the maintenance of the lake.…