Economics (7th Edition) (What's New in Economics)
Economics (7th Edition) (What's New in Economics)
7th Edition
ISBN: 9780134738321
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Chapter 5, Problem 5.2.6PA
To determine

The marginal cost and marginal benefit for reducing crime.

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Use a graph to illustrate the quantity of pollution that would be emitted (a) after a corrective tax has been imposed and (b) after tradable pollution permits have been imposed. Could these two quantities ever be equivalent?
come up with your own example of positive externality and then another example of negative externality. Briefly explain why they can be considered externalities.
In writing about the increased popularity of national parks in the United States, such as Yosemite, Yellowstone, and the Grand Canyon, environmental economist Margaret Walls wrote: When one person's visit to a park doesn't appreciably diminish the experience for others, the fee to use the park should be zero. That doesn't apply when the public good starts to experience congestion problems...the Park Service should...[charge] a significantly higher fee at the most popular parks during the summer months. Source: Margaret A. Walls, "Protecting Our National Parks: Entrance Fees Can Help," Resources, No. 193, Fall 2016. Are Yosemite and other national parks public goods? Briefly explain. A. Yes, they are public goods because national parks such as Yosemite are common resources that are often overused. B. No, Yosemite and other national parks are not public goods when congestion diminishes others' enjoyment of them. C. No, Yosemite and other national parks are not public goods because the…
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