What is the socially optimal number of years of schooling for each citizen? optimal schooling: 14 Pigouvian subsidy: $ years Assuming that the marginal social benefits of education are completely externalized from the educated individual, how large would a Pigouvian subsidy need to be in order to reach this optimal level of schooling? thousand

Social equity is largely a function of the distribution of income and wealth O to extent to which people living in different US regions are experiencing the same level of environmental quality O the extent to which people feel the same about different levels of environmental quality O the government applying the same level of environmental protection throughout the U.S.

Most countries today have subsidised the provision of education. Consider an imaginary country, Gondolin. Gondolin pays a subsidy of $10 000 per year to each student enrolled in tertiary education.(a) Depict, with the help of a figure, the initial market for tertiary education in Gondolin, assume that: 1) education was left to the competitive free market; 2) the marginal private benefit is equal to the marginal social benefit; 3) the marginal private cost is equal to the marginal social cost. Now describe, using the help of the figure, the effect of the government subsidy on the price and quantity traded of tertiary education, where the X axis of the figure should be the quantity of students enrolled in tertiary education. You do not need to use actual numbers – focus on the direction of change in price and quantity traded caused by the subsidy.(b) Identify the area of the figure you drew in (a) that depicts the total size of the subsidy paid by the government to the students enrolled…

Suppose that in an effort to help low-skill workers the government raises the permissible minimum wage to $15 per hour. Can you think of any unintended secondary effects that will result from this action? Will all low-skill workers be helped by minimum wage law?

Provide a graphical representation of a negative supply-side externality that identifies the market failurein terms of both price and quantity.

Can a company be guaranteed all of the social benefits of a new invention? Why or why not?

How does education, as an area of government spending, both positively and negatively impact a business?

Insurance premiums are very high for young drivers largely due to the fact that young drivers get into more automobile accidents than other drivers. Do you think that it is fair that young people are charged more for the same insurance that other drivers have? Is it fair that regardless of how good of a driver is, just because a driver is young he or she is charged more for their car insurance?

Q=100-P Costs $6 to purchase a pack of cigarettes each pack smoked does $6 worth of health damage and $5 worth of secondhand health damage All consumers are aware of these costs 1. Due to an introduction of a hyper-effective tobacco fertilizer, the cost of producing a pack of cigaretts decreases to $1. How does this affect the level of smoking and the level of social loss? 2. suppose the government decides to pursue a Pigovian solution to eliminte social loss. What sort of of tax or subsidy would they implement and what is the resulting quantity of cigarette packs purchased? 3. In the case of the Coase Theorem, it is said that the socially efficient level of smokeing will occur without government intervention. how are property rights established and why might the Coase Theorem not apply in this setting?

Suppose the production of widgets causes a negative externality of $12 per unit. The current market price is $20 and market quantity is 35 units.  What should be the correct Pigovian tax to correct the negative externality?