Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 13, Problem 22CTQ
Radio stations, tornado sirens, light houses, and street lights are all public goods in that all are nonrivalrous and nonexclusionary. Therefore why does the government provide tornado sirens, street lights and light houses but not radio stations (other than PBS stations)?
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Suppose the government has determined that the socially optimal quantity of radioactive waste is 360 million tons per day.
One way governments can charge firms for pollution rights is by imposing a per-unit tax on emissions. A tax (or price in this case) of
of radioactive waste emitted will achieve the desired level of pollution.
$36 per ton
Now suppose the U.S. government does not know the demand curve for pollution and, therefore, cannot determine the optimal tax to achieve the
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Environmental regulation was discussed for cases in which the market is unable to price risk correctly. In those cases, regulatory agencies are often tasked with evaluating risk and with administrating any regulations imposed. What does Public Choice Theory suggest might be the outcome of these bureaucratic processes in terms of the optimal level of regulation? Why?
Chapter 13 Solutions
Principles of Economics 2e
Ch. 13 - Do market demand curves reflect positive...Ch. 13 - Suppose that Sonys R. Is this a private or social...Ch. 13 - The Gizmo Company is planning to develop new...Ch. 13 - The Junkbuyers Company travels from home to home,...Ch. 13 - When residents in a neighborhood tidy it and keep...Ch. 13 - Education provides both private benefits to those...Ch. 13 - Which of the following goods or services are...Ch. 13 - Are the following goods non-rival in consumption?...Ch. 13 - In what ways (it) company investments in research...Ch. 13 - Will the demand for borrowing and investing in R&D...
Ch. 13 - Why might private markets tend to provide too few...Ch. 13 - What can government do to encourage the...Ch. 13 - What are the two key characteristics of public...Ch. 13 - Name two public goods and explain why they are...Ch. 13 - What is the free rider problem?Ch. 13 - Explain why the federal government funds national...Ch. 13 - Call a company be guaranteed all of the Social...Ch. 13 - Is it inevitable that government must become...Ch. 13 - How do public television stations, like PBS, try...Ch. 13 - Why is a football game on ESPN a quasi-public good...Ch. 13 - Provide two examples of goods/services that are...Ch. 13 - Radio stations, tornado sirens, light houses, and...Ch. 13 - HighFlyer Airlines wants to build new airplanes...Ch. 13 - Assume that the marginal private costs of a film...Ch. 13 - Becky and Sarah are sisters 1who share a room....
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- How do public television stations, like PBS, try to overcome the free rider problem? Is public television a public good in a non-obvious way?arrow_forwardWhat can the government do to solve the problem of inadequate levels of public goods? Explain how this solution would help.arrow_forwardThe government can force you to sell your personal residence to them for fair market value (reasonable compensation) if the government is going to use your property for a public purpose. True or False?arrow_forward
- Are utilities a public good, by definition?arrow_forwardTrue/False Road is a type of public good.arrow_forwardWhich of the following best defines a public good? Select the correct answer below: A public good is an unfavorable spillover to a third party or parties. A public good is the estimated benefit going primarily to an individual. A public good is the dollar value of the benefits of a new product or process invented by a company that can be captured by other firms and by society as a whole. A public good is a product that is difficult for market producers to sell to individual consumers because it is non- excludable and non-rivalrous.arrow_forward
- What is the economist’s definition of public goods? Why are public goods associated with market failure? How do the free rider problem and shirking contribute to this form of market failurearrow_forwardProvide a subsidy for the vaccination Government produces and operates vaccination centers, where vaccines are provided at no charge. Impose a regulation, requiring the people of the nation to get the vaccination Explain the potential unintended consequences of each one of these polices. Which policy would you enact and why?arrow_forwardWhat are the two characteristics of public goods? What is the free-rider problem as it related to public goods? Is U.S. border patrol a public good or a private good? Explain.arrow_forward
- Describe a positive or negative externality that you have observed in your life. In the example you provide, determine if the externality is positive or negative, explain why, and discuss if you feel like government intervention is present and/or needed. If so, how does (or how could?) the government increase market efficiency?arrow_forwardConsider two ways of protecting elephants from poachers in African countries. In one approach, the government sets up enormous national parks that have sufficient habitat for elephants to thrive and forbids all local people to enter the parks or to injure either the elephants or their habitat in any way. In a second approach, the government sets up national parks and designates 10 villages around the edges of the park as official tourist centers that become places where tourists can stay and bases for guided tours inside the national park. Consider the different incentives of local villagers—who often are very poor—in each of these plans. Which plan seems more likely to help the elephant population?arrow_forwardWhat percentage of total benefits from regulations comes from EPA regulations? Most of the benefits and costs from EPA regulations are from air pollution rules resulting from the Clean Air Act and its amendments. Judging solely by these data, would you say that Clean Air Act legislation has been a success or a failure for U.S. citizens? Why?arrow_forward
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