Principles of Microeconomics
b. One good example of a public good is education. This applies to state universities that provide either free or affordable education for our marginalized sector. One good characteristic of education as a public good is its subsidized by the government thus providing everybody the right for education.
a. The free rider problem is a problem forwarded directly to a supplier or producer of a good or service that is indivisible or cannot be obtained individually, wherein exclusion principle is cannot be applied.
b. The best things in solving this problem would only mean a government total intervention. Firstly, the government should launch surveys in determining what the public reactions are for a particular public good proposal. Secondly, open the bidding to the public. This bidding is consisted by the project head from the private institution that will do the project and the government agency that will finance it. After finalizing all the needed legal processes without any violent reaction from the people, the government will then proceed with proposed public project and then charge the public sector in the form of taxes.
A. The government as the highest controlling body in a society has a number of alternative ways in correcting pollution generated firms, such as the following
Individual bargaining
Liability rules
Tax on producers
Direct controls
Market for externality rights
B. The system for marketable pollutions permits set up through a pollution control agency that will determine the amount of pollutants that firms can discharge into the water or air of a specific region annually while maintaining the water or air quality at some acceptable level.
A. A command-and-control policy is also known as socialism or communism. This policy allows the government to take control of the most properties and resources of a society. The government also holds most of the business firms that produce, based to what the government commands.
B. Nevertheless, this policy may be inefficient because (1) It basically hinders free market in entering a communist society. Since the government owns and directs almost everything, the society is limited from international marketing interventions thus providing poor outputs. (2) This policy also limits a society from going with the international trends. This basically barred its constituents from learning and living with the outside world. This sometimes creates chaos and cultural violence within the society if not properly directed.
A. If there is an increase in the age rate, consumers typically purchase more products compared then when he could not otherwise the opposite effect occurs. This is the income statement. On the other hand, there is no difference in explaining the substitution effect using the increase in wage rate as a variable. This only means that whether the wage rate increases or not, at certain point when lower price level occurs, the incentive of the consumers (at a separate point) to substitute a product for a similar product that is now relatively more expensive is constant. This applies whether the wage rate increased or not.
B. Suppose given this situation, this will cause me to find another job since my earnings could not sustain my needs at all. Using the concept of income and substitution effects, I would not have the same purchasing power as much what my first wage per hour can offer. Otherwise I have to more strict when it comes into my financial status.
C. If Sabrina continues to work 40 hours per week, using the new pay plan of the cooperative, there will be no change affecting her total income. This simple means because
Former wage system
(40hrs)(20)
800
800200(lump-sum)
1000
New wage system
(40hrs)(18)
720
720280(lump-sum)
1000
Therefore, this wont basically change Sabrinas total income because summing it all, both is equal to 1000.
A. Reasons why the supply of labor in a particular area may be small
Lets take an electronic company as an example, wherein if there is an increase change of resources prices, the possibility is the company will hire lesser but skilled personnel.
If there is a change in expectations, like a substantial rise in the future chips prices, this will decrease the supply of chips and also for its labor force.
If there is a change in number of microchips suppliers, from positive to negative, there could be an employment lay off.
If there is a change in taxes and subsidizes, from 10 to 20, a company is therefore forced to lessen its workers.
B. So if the minimum wage is placed above the market equilibrium wage, this only means that the market equilibrium is lower than the minimum wage, thus a representation of a negative economic status.
C. Means-tested programs are programs that are either provided by the government or concerned citizens composing basically some our active non-government organizations or NGOs. These programs have been tested in alleviating poverty rate. One example was how the government produced its pump primes in aiding companies that were most vulnerable to financial collapse during the recent global financial crisis. This somehow helped our country through reserves in surviving the said economic turbulence. In other words one of means-tested programs is monetary loaning.
7. Substitute effects, since James knew he is now more substantial in affording an expensive life insurance, why not invest into parachuting out of airplanes and bungee jumping that are cheaper than a life insurance James did it.
8. I would be more willing in purchasing the lemon dishwasher at its cheaper cost and with the same 50 probability compared to the expensive one. Why Its a common sense.
Market AMarket BMarket CAssumed chance of getting a lemon608095Willingness to pay for a used car6,0005,0004,500Number of lemons supplied704090Number of plums supplied301010Total number of used cars supplied.10050100Equilibrium Yes or No NoYesNoIf disequilibrium, will price then rise or dropDropRisedrop
9. There key factors that explain the differences in market income are
a. Transfer in payments or payment of money by a government to a household or firm for which the payer receives no good or service directly in return.
b. Market intervention that is to modify prices that are or would be established by the market forces. For example is how the government help in providing farmers with above market prices for their output and requiring firms pay minimum wages in raising the income of specific groups.
c. Taxation, since then the government has used the personal income tax, thus narrowing the after-tax income difference between the rich and the poor through taking the larger proportion of the high-income earner and the one who has lower, or the poor.
10. Cash incentives help the poor because it forces them to work. This also helps the country to boost its aging work force.