Chapter 18, Government Policy and Market Failures Video Solutions, Economics

02:11

Problem 1

State three reasons for a potentially beneficial role of government intervention.

Jesse Leija

Numerade Educator

04:46

Problem 2

Is the marginal social benefit of a good that exhibits positive extemalities greater or less than the private social benefit of that good? Why?

Melody Ama

Numerade Educator

Problem 3

Explain why a market incentive program is more efficient than a direct regulatory program.

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Problem 4

How would an economist likely respond to the statement "There is no such thing as an acceptable level of pollution"?

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00:57

Problem 5

Would a high tax on oil significantly reduce the amount of pollution coming from the use of oil? Why or why not?

Sandile Ndlovu

Numerade Educator

00:57

Problem 6

Would a high tax on oil significantly reduce the total amount of pollution in the environment?

Sandile Ndlovu

Numerade Educator

01:36

Problem 7

More than half of 30 economists polled recently stated that the federal gasoline tax should be $$\$ 1$$ or higher. What do you suppose were their reasons?

Tristan Wille

Numerade Educator

02:22

Problem 8

List the public-good aspects (if any) of the following goods: safety, street names, a newspaper, a steak dinner, a lighthouse.

Alejandro Ruiz

Numerade Educator

02:25

If you are willing to pay $$\$ 1,000$$ for a used stereo that is a "cherry" and $$\$200 $$ for a used stereo that is a "lemon," how much will you be willing to offer to purchase a stereo if there is a 50 percent chance that the stereo is a lemon? If owners of cherry stereos want $$\$ 700$$ for their cherries, how will your estimate of the chance of getting a cherry change?

Manisha Sarker

Numerade Educator

02:10

Problem 10

Define the adverse selection problem. Does your understanding of adverse selection change your view of commercial dating services? If so, how?

Erwin Antoni

Numerade Educator

01:15

Problem 11

If neither buyers nor sellers could distinguish between "lemons" and "cherries" in the used-car market, what would you expect to be the mix of lemons and cherries for sale?

Erwin Antoni

Numerade Educator

04:06

Problem 12

Automobile insurance companies charge lower rates to married inclividuals than they do to unmarried individuals. What eoonomic reason is there for such a practice? Is it fair?