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

POLICY FAILURE, GROWTH OF EMPLOYMENT OPPORTUNITIES: Policy failure ref...

GROWTH OF EMPLOYMENT OPPORTUNITIES: Policy failure refers to situations:   i) When the objectives of public policy are attained partially or inadequately or in a distorted

Cyclical fluctuations, Cyclical Fluctuations: Consider a situation whe...

Cyclical Fluctuations: Consider a situation where the value of money above trend indicates an unexpectedly high level of money in the recent past. The model predicts that this

Impact of government legislations on business, Impact of government legisla...

Impact of government legislations on business in india Government in India plays a dominant role in the Indian business activity. It directs and regulates the private business and

Capital gain, Capital Gain: A capital gain is a form of profit which is ear...

Capital Gain: A capital gain is a form of profit which is earned on an investment by re-selling an asset for more than it cost to buy. Assets that can be purchased for this purpose

Tariff, Tariff: A tariff is a tax imposed on the purchase of imports. It is...

Tariff: A tariff is a tax imposed on the purchase of imports. It is generally imposed in order to stimulate more domestic production of the product in question (rather than meeting

Explain labour intensity, Q. Explain Labour Intensity? Labour Intensity...

Q. Explain Labour Intensity? Labour Intensity: Ratio of labour effort expended, compared to total on-the-job compensated labour time. A higher ratio of labour intensity reflect

Cost, #question.theories of cost

#question.theories of cost

Measures to promote growth - structure of national income, MEASURES TO PROM...

MEASURES TO PROMOTE GROWTH: In view of the recent global experience, the following steps need be taken to accelerate the rate of growth.  1) Mastering and constantly improv

Describe the importance of opportunity cost to a society, Problem: (a) ...

Problem: (a) "Economics is the study of how society decides what, how and for whom to produce". Describe the importance of opportunity cost to a society. (b) Distinguish bet

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