1. Many individuals might be willing to contribute $25 to the local community charity drive if they could be assured that others would do so. Explain how the free-rider problem complicates the issue of raising money for charitable purposes.
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1. Many individuals might be willing to contribute $25 to the local community charity drive if they could be assured that others would do so. Explain how the free-rider problem complicates the issue of raising money for charitable purposes.
2. Jones gets a real bargain on 100 acres of land because it is near an airport. He decides to use the land to breed his prize-winning race horses. One year after buying the land, Jones sues the airport because his horses, disrupted by the noise of jet planes, are not breeding. If you were the judge, how would you decide Jones' case? Why?
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- 1. The prairie dog has always been considered a problem for American cattle ranchers. They dig holes that cattle and horses can step in, and they eat grass necessary for cattle. Recently, ranchers have discovered that there is a demand for prairie dogs as pets. In some areas, prairie dogs can sell for as high as $150 each. Cattlemen are now fencing off prairie dog towns on their land so these towns will not be disturbed by their cattle. Draw a rancher's production possibilities frontier showing increasing opportunity cost of cattle production in terms of prairie dog production. Using a separate graph for each situation, show what would happen to the initial production possibilities frontier in each of the following situations: a. The outcome is efficient, with ranchers choosing to produce equal numbers of cattle and prairie dogs. b. As a protest against the government introducing the gray wolf back into the wild in their state, ranchers decide to withhold 25 percent of the available…9. A village is located next to 1000 acres of prime grazing land. The village presently owns the land and allows all residents to graze cows freely. Some members of the village council have suggested that the land is being overgrazed. Is this likely to be true? These same members have also suggested that the village should either require grazers to purchase an annual permit or sell off the land to the grazers. Would either of these be a good idea?Part 1 that current actions do not compromise the well-being of future generations. It recognizes that Sustainability is a critical concept in economics and environmental science, aiming to ensure traditional market mechanisms can sometimes lead to market failures, particularly in cases where environmental and social costs are not fully considered. Market failures, such as overexploitation of natural resources, pollution externalities, and the depletion of common- pool resources, can have adverse consequences for both the environment and society. To avoid market failures and promote sustainability, various strategies are employed. Governments often step in with regulations and policies that address externalities, establish property rights, and set standards to limit harmful activities. Additionally, sustainability initiatives encourage responsible resource management, green technologies, and corporate social responsibility...... Referring to the text, Briefly explain how sustainability…
- 4. Hydraulic Fracking is the process of drilling and injecting fluid into the ground at a high pressure in order to fracture shale rocks to release natural gas inside to be sold as an energy source. Up to 600 chemicals are used in fracking fluid, including known carcinogens and toxins. This is an example of a... a. Negative production externality b. Negative consumption externality C. Positive production externality d. Positive consumption externalityCompetitive Markets and Externalities 1.What impact do policy interventions have on the supply and demand equilibrium for a product? Provide specific examples 2.What are the determinants of price elasticity of demand? Identify at least three examples? 3.Explain how price elasticity can impact pricing decisions and total revenue of the firm? 4.can policy market interventions cause consumer or producer surplus? Explain why using specific reasoning.1. Choose one of the approaches listed below for protecting elephants from poachers in African countries. A. 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. B. The government sets up national parks and designates ten villages around the park's edges as official tourist centers that become places where tourists can stay and bases for guided tours inside the national park. 2. Depending on the approach you have chosen (A or B), explain how the incentives will affect the local villagers, who are often very poor. 3. Which approach (A or B) seems more likely to help the elephant population?4. Discuss the practice of poaching elephants and the need for environmental protection? 5. Explain how the practice of poaching elephants is a negative externality?
- Instructions There is often a temptation to take a dim view of profits. Some people seem to believe profits come at the expense of buyers. It is easy to reason that if profits were lower, prices could be lower thus benefiting consumers. a. What are economic profits? Explain in detail. b. Do economic profits harm the interests of consumers? Explain in detail. c. Can there be a socially useful outcome when economic profits exist? Explain in detail. d. Do lower prices always benefit consumers? Explain in detail.Question 3 Some reasons why resources could be allocated inefficiently by the market are negative externalities and positive externalities. (a) Explain, using graphs, what the problem is in each case, and explain possible solutions to each problem. (b) All of these problems might be described as arising due to poorly defined property rights. Explain the relationship of property rights to these instances where the market fails to allocate resources efficiently. (c) Explain how a corrective tax can eliminate the inefficiency caused by a negative externality. Use a graph to assist your explanation (d) Why does the optimal tax promote the efficient use of resources?Imagine that a town of 200 people is trying to decide whether to pay for mosquito control. The town has surveyed their citizens and they each say they value mosquito control at $75. Mosquito control only costs $2,500 so the town goes ahead and pays for the service. When the town asks for donations to pay for the mosquito control, they only receive $1,000. What does this result show? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a The town's citizens were free riders. b The mosquito control suffered from the tragedy of commons. The mosquito control cost must have been greater than its economic benefit. d. The town's survey must have overestimated the value of mosquito control.
- 1. Ya-Mona argues that the ethical order should hold primacy over the economic order. What does he mean by this and what arguments does he give in support of this view. What is the best objection to Ya-Mona's view? Is this objection successful? Why or why not? Explain your answer in detail.4. When handling insects, knowing where the pests are thickest can help save on insecticide usage. But scounting for bugs also comes at a price. Determine the appropriate blend of insect scouting and insecticide to manage your insect issues on the farm. Complete the following worksheet considering the different strategies for soybean production and answer the accompanying questions. The price of insect scouting is $30 per hour and insecticide is $6 per quart. Strategy Scounting (hours) Insecticide (quarts) Input Substitution Ratio Input Price Ratio 1,200 40 600 80 300 D. 120 120 (a) What economic question/opportunity does this address? What is the appropriate decision rule for input substitution? What does that rule to seek to achieve (be more specific than saying "profit maximization")? (b) What is the profit maximizing strategy? What is the cost associated with that strategy? (c) Explain how the input price ratio will change if both input prices decrease from the initial scenario by…Read the excerpt. "The Maryland Department of Natural Resources has rescheduled public hearings on whether to allow companies to build wind turbines In state forests in Westem Maryland." -Baltimore Sun, January 2008 The situation described in the news article illustrates a possible conflict between finding alternative sources of energy and A protecting the environment. B funding national defense. C enhancing the quality of education. D promoting economic equity.