User Account

All Pages

Calculate the externality imposed

Assignment Help Macroeconomics
Reference no: EM131093666

Consider 3 neighbors (Ben, Jill and Lisa) deciding whether or not to have a streetlight inthe neighborhood. The light costs $600. They agree in advance that if the light is provided they would share the costs equally. Ben is willing to pay $150, Jill $175 and Lisa $450 for the light.

a) If the decision is made based on majority voting, what is the outcome?

b) Determine if each of Ben, Jill or Lisa is pivotal in the sense that her/his presence or absence will affect the (optimal) outcome.

c) Calculate the externality imposed by the presence or absence of each of them.

d) Calculate the Clarke tax to be imposed on each of them so that they willtruthfully reveal their willingness to pay.

Reference no: EM131093666

Questions Cloud

Topic of unemployment in the us : Write a minimum of a five-page essay, using proper APA format, on the topic of unemployment in the U.S. Use a minimum of three scholarly sources. You have the freedom to take any aspect of unemployment that you desire to research.
Analyze these data for the effects of cost : Consumers who are not regular yogurt eaters are polled and asked to rate on a 1 to 9 scale the likelihood that they would buy a certain yogurt product at least once a month; 1 means very unlikely, 9 means very likely.
Keynesian model and the ad-as model : 1. An important similarity between the Keynesian model and the AD/AS model is that:
Do you know anyone who has affected by income inequality : In this case study, one could argue that the city's plans to help Wright-Dunbar residents remain in their homes came about only because of political pressure by various advocacy groups. What other motivation could the city have had? Why was it the..
Calculate the externality imposed : a) If the decision is made based on majority voting, what is the outcome? b) Determine if each of Ben, Jill or Lisa is pivotal in the sense that her/his presence or absence will affect the (optimal) outcome. c) Calculate the externality imposed by ..
An experiment investigated the release of the hormone : An experiment investigated the release of the hormone ACTH from ratpituitary glands under eight treatments: the factorial combinations of CRF (0 or 100 nM; CRF is believed to increase ACTH release), calcium (0 or 2 mM of CaCl2), and Verapamil (0 o..
What is the new equilibrium level of gdp : How will equilibrium GDP change is G increases by 100, and what is the new equilibrium level of GDP? How will equilibrium GDP change if G and T both increase by 500, and what is the new equilibrium level of GDP?
Half-normal plots of the effects from an unreplicated : Consider the following two plots, which show normal and half-normal plots of the effects from an unreplicated 25factorial design. The effects are numbered starting with A as 1 and are in standard order. What would you conclude?
How rational organisational design help to cut cost : Business studies How rational organisational design help to cut cost and increase control

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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