Negative externalities Study guides, Class notes & Summaries

AQA AS ECONOMICS 7135/1 Paper 1 The Operation of Markets and Market Failure June 2022 Question Paper. shows the long-run average cost curve (LRAC) for a firm. Figure 1 Which one of the following movements along the curve shows a reduction in diseconomies of scale? A V to W B X to W C X to Y D Z to Y [1 mark] 0 4 A government decides to increase its subsidy to rail services to encourage more people to travel by rail. The subsidy is most likely to be successful if rail travel has a A de...

Hayek - The Use of Knowledge in Society - ANSWER -Complexity of pricing is so complex no person can determine it. -Argued that decision-making must be decentralized to take into account this dispersed knowledge -No one person is as knowledgeable as all of us together. -Markets provide a systemic process that allows us to pool our individual knowledge. -Business people make decisions using price signals. -Price signals allow for sophisticated coordination even when individuals have never me...

Alf questions with correct answers 2024 demand the quantity that consumers are willing and able to purchase at various prices reinterpret demand shows buyers max "willingness to pay" for some quantity of output WTP - P* consumer surplus consumer surplus The difference between a buyer's willingness to pay and the price actually paid supply shows the quantity producers are willing and able to sell at various prices reinterpret supply shows sellers minim...

C1 - Why do you think so many innovation projects fail to generate an economic return? - Technical uncertainty, feasibility, viability; market uncertainty; too many products, lack of structured innovation. (See P.4) CS1 - To what degree would you characterize Given's development of the camera pill as a science-push vs. demand-pull? - Demand pull from Dr. Scapa, but the independent Swain development was science push, finding a way to use existing spy tech. CS1 - What were the advantages of...

Sapling Ch. 16 Externalities The lease on Allison's apartment will expire next month and she wants to move closer to campus. There are two apartments that she likes. Both are close to campus and in her price range. The first one is next door to a garage where local bands often practice late at night. The second one is next door to a donut shop that opens at 5 a.m. If she likes to stay up late and loves listening to all kinds of music, she will view the bands practicing as a(n): If ...

How has Tobacco been demonized over time? correct answers The have been employment bans and jail time for women who have smoked in front of their children. And there has been legislation that has regulated the substance. Bans in public places, higher taxation What was Henry Ford's "The Case against the Little White Slaver?" correct answers Henry Ford published and distributed a book titled The Case Against the Little White Slaver and who refused to hire smokers. What is the rational for...

ECN 212 Exam 2 (ASU)_Questions with Correct Answers_2023 Public goods are: A. separately consumed and non-excludable B. separately consumed and excludable C. jointly consumed and non-excludable D. jointly consumed and excludable (Correct Answer) - jointly consumed and non-excludable A free rider is someone that is forced to pay for a good he or she does not want. (T or F) (Correct Answer) - False The two major functions of government are: A. predictive and protective B. promotive ...

Reasons for market failures - Imperfect information Concentration of market power Consumption of public goods Presence of externalities Market failure: public goods - Non-rival: more than one person can enjoy them simultaneously Nonexclusive: impossible or too costly to exclude individuals from enjoying the good Consumption of public goods leads to free riders Market failure: externalities - Positive or negative impact when one person's actions create a benefit of imposing a cost on ot...

APES Tragedy of the CommonsTragedy of the Commons - correct answer The tragedy of the commons suggests that individuals will use shared resources in their own self-interest rather than in keeping with the common good, thereby depleting the resources. Tendency of individuals to use shared/public resources in their own self-interest and thus degrading them. Examples include overgrazing, overfishing, air pollution, and overuse of groundwater/aquifers Why does the Tragedy of the Commons Oc...

gains from trade - Each country can concentrate its efforts on what it does best (specialize) and trade some of those goods for goods that other countries produce most efficiently Protectionism - Government policy of restricting imports to "protect" domestic industries from foreign competition race to the bottom - a dynamic in which states compete to attract business by lowering taxes and regulations, often to workers' detriment S-shaped curve - shows income in the future as opposed to ...