if children are viewed as consumer durables and an overpopulated country is planning on reducing the desired family size with economic incentives, which of the following policy will help? a. Increasing the marginal benefit of children b.. Increasing the marginal cost of children c. Decreasing the marginal cost of children d. Decreasing the marginal benefit of children
1. a and c 2. c and d 3. b and d 4. a and b
If children are consumer durables and an overpopulated Country is planning on reducing the desired family size with economic incentives then the policy that will help in achieving this is increasing the marginal cost of children and decreasing the marginal benefit of children . Hence, option(3) is correct.
if children are viewed as consumer durables and an overpopulated country is planning on reducing the...
1. Small Country Policy Analysis with a Positive Externality. The home country imports steel at a constant world price of 2. Home demand and supply for steel are shown in the top panel of Diagram 1 on the next page. Suppose there is a positive externality associated with steel production, and the marginal social benefit is shown in the bottom panel of Diagram 1. a) Find the values of P, D, Q, consumer surplus, and producer surplus in free trade....
A country decides to impose a tax to reduce the external cost created by carbon emissions. Prior to the tax, ______, and as a result of thetax, _______. A. marginal cost equals marginal benefit; marginal cost will be less than marginal benefit B. market failure occurred; producer surplus will equal consumer surplus C. producer surplus equals consumer surplus; marginal cost equals marginal benefit D. market failure occurred; the deadweight loss is reduced E. there was no deadweight loss; a market...
1. Consider the following two period consumption savings problem. A consumer cares about consumption (c and future consumption c according to Assume that U(c) is given by for some constant y. In the present the consumer chooses how much to consume and how much to save out of her income y>0 This decision is made in the knowledge that in the future she will be retired, have no income, and thus future consumption will be entirely out of savings: c)a,...
1. A pure public good is: a. one that can easily be sold by the unit. b. one that is nonrival in consumption. c. one whose benefits are not subject to exclusion. d. both (b) and (c) 2. The marginal cost of providing a certain quantity of a pure public good to an additional consumer after it is provided to any one consumer is: a. zero. b. positive and increasing. c. positive and decreasing. d. positive and constant. 3. The...
1) You are planning a vacation trip to Hawaii. The travel website offers three options: You can buy one of three vacation package options: (a) $3000 for 6 days, or (b) $3300 for 7 days, or (c) $3400 for 8 days. You don't have enough time for the eighth day A) Your marginal cost of option (a) vs option (b) is $300 whereas your marginal benefit is an extra day to enjoy Hawaii B) Your marginal cost of option (a)...
1. According to economic theory, the efficient amount of pollution in the economy is the point at which: a. b. c. All your enemies have been vanquished by the amount of pollution you have produced The marginal benefit of reducing pollution further is zero The total benefits of eliminating pollution are equal to the total costs of eliminating pollution The marginal benefits of reducing pollution further are equal to the marginal costs of reducing pollution further There is no pollution...
5. In a Lindahl equilibrium, a. each consumer purchases a pure public good up to the point at which his or her marginal benefit equals the marginal social cost of the good. b. each person pays a tax per unit of the pure public good equal to his or her marginal benefit. c. the sum of the marginal benefits of all consumers equals the marginal social cost of the good. d. both (a) and (c) e. both (b) and (c)...
Scenario: Country X and Country Y production amount of physical capital stock available to each country is also equal. However, the labor supply for Country X is Ho while the labor supply for Country Y is Hy identical aggregate production functions as shown in the figure below. The Output 0 H, H, Efficiency units of Labor 8) Refer to the scenario above. A one-unit increase in the efficiency units of labor will lead to in output in Country X than...
1. Economics can best be defined as the study of how a. Society decides to use its scarce resources in an attempt to satisfy unlimited wants b. The government should deal with the problems of unemployment and inflation C. To make money in the stock market d. The government should eliminate the problem of scarce resources 2. What you give up to obtain an item is called your a. True cost b. explicit cost c. opportunity cost d. direct cost...
Below is the production possibilities table for the country of Lavaland. Number of pizza Choice Number of tanks 15 14 12 12 3. When the Lavaland is currently at the point A on its PPF, how the production of tanks can be increased in a given time? a. The country can have both, more of thanks and more of pizza b. Production of thanks can be increased by decreasing the production of pizza. c. Production of thanks can be increased...