Question 1 the economic implications of externalities 5

Reference no: EM13375818

Question 1: The economic implications of externalities (5 marks to parts a and b)

a) Briefly explain what an externality is in economic terms using an example to illustrate your answer.

b) Draw a diagram showing how the market equilibrium will change if the marginal social costs of a polluting production activity are included rather than just the marginal private costs of that activity.

Question 2: Public goods

(a) Define and describe the two main characteristics that define a public good.

(b) Using these characteristics construct a matrix of four types of good (from pure private goods to pure public goods) and list three examples of such goods under each type.

Reference no: EM13375818

Questions Cloud

This chapter argued that saving and spending behavior : this chapter argued that saving and spending behavior depended in part on wealth accumulated savings and inheritancebut

A number of strategies have been put in place to reduce : a number of strategies have been put in place to reduce alcohol-related harm by reducing the average consumption of

The proposal has to including the nature of the project the : the proposal has to including the nature of the project the sources of information planning to use and the most

1 below are first banks assets and liabilitiesfirst : 1. below are first banks assets and liabilitiesfirst bankassets liabilitiesrate-sensitive assets 20 million rate

Question 1 the economic implications of externalities 5 : question 1 the economic implications of externalities 5 marks to parts a and ba briefly explain what an externality is

Be sure to explain your answers completely and show you : be sure to explain your answers completely and show you read each article and thought about what it said.question1

Part - 1question 11 if a perfectly competitive industry : part - 1question 11. if a perfectly competitive industry consisting of identical rms is in long run equilibrium and the

1 monopolysuppose that the inverse market demand curve for : 1. monopolysuppose that the inverse market demand curve for a new drug adipose-off designed to painlessly reduce body

1 pampg sold its prescription drug business to : 1. pampg sold its prescription drug business to warner-chilcott ltd. for 3.1 billion. if income from product sales is 2

User Account

All Pages