What are externalities and corrective taxes, Microeconomics

Assignment Help:

1. What are externalities? Give an example of positive and negative externality and explain why the market outcomes are inefficient in the presence of externalities?

2. What are the different types of private solutions to externalities?

3. Discuss briefly the public policies towards externalities?

4. What are corrective taxes? Why do economists prefer them to regulations as a way to protect the environment from pollution?

5. What are the four different types of goods differentiated on the basis of the characteristics of rivalry and excludability?

6. Explain what is meant by a good being "excludable". Explain what is meant by a good being "rival in consumption". Is a pizza excludable? Is it rival in consumption?

7. Explain what is meant by the term "free rider". Can an individual be a free rider when consuming a private good? Why or why not?

8. Define common resource. Without Government intervention, will people use this good (a stream of clean water passing by an industrial area) too much or little too much? Why? Define price ceiling and price control. Give an example for each. Which leads to shortage? Which leads to surplus?

9. What is the importance of property rights? Discuss.

10. What is meant by cost-benefit analysis? How the calculation of cost-benefit analysis can be considered as a difficult one?


Related Discussions:- What are externalities and corrective taxes

Draw a marginal utility curve , Draw a marginal utility cureve for a good t...

Draw a marginal utility cureve for a good that has a constant marginal utility

Explain key assumptions and desired properties, Explain the key assumptions...

Explain the key assumptions and desired properties commonly used economics. Economists generally make all or some of the given key assumptions and a condition while they study

Name the five types of capital, Name the five types of capital. The fiv...

Name the five types of capital. The five types of capital are:  natural capital, manufactured capital, human capital, social capital and financial capital.

Breadtalk fixed and variable costs in singapore.., I wanted to the fixed an...

I wanted to the fixed and variable costs of breadtalk in singapore from economic perspective

Elasticity, what are the uses of cross elasticity quantity in demand/

what are the uses of cross elasticity quantity in demand/

, #questionLook up the real GDP of the U.S. for the 4th quarter of 2007 an...

#questionLook up the real GDP of the U.S. for the 4th quarter of 2007 and compare it with the real GDP for the 2nd quarter of 2012. What does this tell you about the performance of

Substitute product, If we have two products, A and B, which are substitutes...

If we have two products, A and B, which are substitutes, we can expect that a rise in the price of A (or B) will cause the demand for B (or A) to go up.” Examine this statement wit

How might governments lower the natural rate of unemployment, How might gov...

How might governments lower the natural rate of unemployment? An easy way to organise the answer is to separate possible solutions into two broad groups; interventionist and m

Interest rate dertemination, to what extent are interest rates determined b...

to what extent are interest rates determined by the economic theory

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd