Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer BOTH of the following questions in 250+ words total.Please be sure to explain in detail.One-sentence answers are not eligible for credit in this

Please answer BOTH of the following questions in 250+ words total.Please be sure to explain in detail.One-sentence answers are not eligible for credit in this course. Grammar counts here so be sure to proofread and run spellcheck.

1. Discuss one negative and one positive externality that you have witnessed recently that has not already been used in the book or power points. Who are the third parties affected by these externalities?Why does the externality exist? Is there any possibility of eliminating the externality if it is an external cost?How could government intervene to try to correct for the market failure in these cases?

AND

2. What is the free-rider problem and what causes it?Give someORIGINALexamples (ones that you come up with yourself that have not already been discussed in the power point or textbook) of public goods that are subject to the free-rider problem. If we leave it to the private market to pay for public goods, what market outcome would you expect in regard to the examples of public goods that you cited above (i.e., would the good be overproduced or underproduced)?Suggest one idea about how we can correct the problem of public goods? Also, try to give at least one original example/explanation of the Tragedy of the Commons.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Economics Of The Environment Selected Readings

Authors: Robert Stavins

6th Edition

0393913406, 9780393913408

More Books

Students also viewed these Economics questions

Question

Personal role: This consists of service to family and friends.

Answered: 1 week ago

Question

The role of life: It consists of your own service to yourself.

Answered: 1 week ago