Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hello. I am struggling to answer these 5 questions for my Microeconomics ECO 110 class. Any help answering these questions so I understand for future
Hello. I am struggling to answer these 5 questions for my Microeconomics ECO 110 class. Any help answering these questions so I understand for future reference would be a great help. Thank you again for the time and effort to help me!
Question 1 (10 points) Identifying Goods (Unit 10) In the Dune sci-fi series, melange (aka "the spice") is a drug that gives some users the ability to see the future, allowing them to fly spaceships around without crashing into stuff. Unfortunately, melange can only be found on the desert planet Arrakis (also known as "Dune"), guarded by deadly, gigantic sandworms Assuming that the fields where melange is harvested are private property, this would make melange l l 5/ (excludableonexcludable). Since melange taken by one harvester can't be taken by another, it's also l l 4/ (rivalon-rival). Therefore melange is al [l x (private/club/public/common resource) good Once melange has been harvested, it can be made into a gas that many people can breathe at once. Therefore, melange gas is l l {y (rivalon-rival). Since the harvester can charge a fee for it, melange gas is also excludable. Therefore, melange gas is a ' l 13/ (private/public/common resource/club) good Question 2 (10 points) Identifying Goods (Unit 10) To get into an amusement park (3111), you need to pay money for a ticket. The roller coasters inside the park are therefore I l 'v (excludablefnon-excludable) goods. Once you're inside the amusement park, you can go on the roller coaster at the same time as your friends. So the roller coaster is a 6/ (rivalon-rival) good Roller coasters are therefore an example of a {y (private/club/common resource/public) good Question 3 (10 points) Responses to Non-Excludable goods (Unit 10) Youtube is a free website that hosts user-uploaded videos. Since anyone can freely watch videos on YouTube, YouTube is (excludableon-excludable). Since multiple people can watch the same video at once (even from opposite sides of the globe), a YouTube video is (rivalon- rival). Therefore, YouTube is a (private/club/common resource/public) good However, goods like YouTube face a problem called the A/ (Free Rider/Tragedy of the Commons) problem, in which there is A/ (too muchot enough) incentive to supply YouTube as a service. As a result, Google introduced ads on YouTube in 2007 in order to A/ (tax/subsidize) YouTube and keep it free for everyoneQuestion 4 (10 points) Rasponses to Non-Excludable goods (Unit 1 Helium is a noble gas used in balloons, blimps, and arcwelding. As a non-renewable resource, it is extracted as a by-product of natural gas. Since helium occurs in underground deposits that anyone could mine, helium used to be l l 15/ [excludableon-excludable). Since helium taken by one extractor could not be taken by another, helium is also l l 6/ (rivalon-rival). Therefore, helium is a l l v (private/club/common resourceXpublic) good However, goods like helium face a problem called the l 5/ (Free Rider/Tragedy of the Commons) problem, in which there is l I 5/ (too muchot enough) incentive to extract helium. As a result, the US government took ownership of 40% of the world's supply of helium in 1925 as a l 6/ (tax/subsidy/command-and-control) intervention Question 5 (1 point) Vocab (Unit 6) Pretzels ((23) are a tasty, salty snack item. However, there are plenty of other salty snack items like chips and crackers. These items are l i 'v (complements/substitutes) to pretzels If consumers value all salty snacks equally, then when pretzels become expensive they l l 5/ (will not/will) be willing to purchase pretzels and l 5/ (will not/will) want to switch to a different snack. We would therefore conclude that pretzels are l l Q/ (elastic/inelastic). Over time as more salty snacks are found, pretzels will become more ' l Q/ (elastic/ inelastic)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started