Chapter 13: Problem 7
Which of the following goods or services are nonexcludable? a. police protection b. streaming music from satellite transmission programs c. roads d. primary education e. cell phone service
Chapter 13: Problem 7
Which of the following goods or services are nonexcludable? a. police protection b. streaming music from satellite transmission programs c. roads d. primary education e. cell phone service
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Get started for freeEducation provides both private benefits to those who receive it and broader social benefits for the economy as a whole. Think about the types of policies a government can follow to address the issue of positive spillovers in technology and then suggest a parallel set of policies that governments could follow for addressing positive externalities in education.
What can government do to encourage the development of new technology?
Provide two examples of goods/services that are classified as private goods/services even though they are provided by a federal government.
Do market demand curves reflect positive externalities? Why or why not?
Assume that the marginal private costs of a firm producing fuel-efficient cars is greater than the marginal social costs. Assume that the marginal private benefits of a firm producing fuel-efficient cars is the same as the marginal social benefits. Discuss one way that the government can try to increase production and sales of fuel efficient cars to the socially desirable amount. Hint: the government is trying to affect production through costs, not benefits.
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