- 13.1: Are positive externalities reflected in market demand curves? Why o...
- 13.2: Samsungs R&D investment in digital devices has increased profits by...
- 13.3: The Gizmo Company is planning to develop new household gadgets. Tab...
- 13.4: The Junkbuyers Company travels from home to home, looking for oppor...
- 13.5: When a neighborhood is cleaned up and kept neat, there are a number...
- 13.6: Education provides both private benefits to those who receive it an...
- 13.7: Which of the following goods or services are nonexcludable? a. poli...
- 13.8: Are the following goods nonrivalrous in consumption? a. slice of pi...
- 13.9: In what ways do company investments in research and development cre...
- 13.10: Will the demand for borrowing and investing in R&D be higher or low...
- 13.11: Why might private markets tend to provide too few incentives for th...
- 13.12: What can government do to encourage the development of new technology?
- 13.13: What are the two key characteristics of public goods?
- 13.14: Name two public goods and explain why they are public goods.
- 13.15: What is the free rider problem?
- 13.16: Explain why the federal government funds national defense.
- 13.17: Can a company be guaranteed all of the social benefits of a new inv...
- 13.18: Is it inevitable that government must become involved in supporting...
- 13.19: How do public television stations, like PBS, try to overcome the fr...
- 13.20: Why is a football game on ESPN a quasi-public good but a game on th...
- 13.21: Provide two examples of goods/services that are classified as priva...
- 13.22: Radio stations, tornado sirens, light houses, and street lights are...
- 13.23: HighFlyer Airlines wants to build new airplanes with greatly increa...
- 13.24: The marginal private costs and the marginal private benefits of a f...
- 13.25: Becky and Sarah are sisters who share a room. Their room can easily...
Solutions for Chapter 13: Positive Externalities and Public Goods
Full solutions for Principles of Economics | 1st Edition
the idea that taxes should be levied on a person according to how well that person can shoulder the burden
the ability to produce a good at a lower opportunity cost than another producer
two goods for which an increase in the price of one leads to a decrease in the demand for the other
the study of how society manages its scarce resources
the setting of the level of government spending and taxation by government policymakers
marginal tax rate
the amount that taxes increase from an additional dollar of income
the ability of a single economic actor (or small group of actors) to have a substantial influence on market prices
median voter theorem
a mathematical result showing that if voters are choosing a point along a line and each voter wants the point closest to his most preferred point, then majority rule will pick the most preferred point of the median voter
the study of how households and firms make decisions and how they interact in markets
negative income tax
a tax system that collects revenue from high-income households and gives subsidies to lowincome households
a market structure in which only a few sellers offer similar or identical products
a curve that shows the short-run trade-off between inflation and unemployment
a legal maximum on the price at which a good can be sold
goods that are neither excludable nor rival in consumption
the path of a variable whose changes are impossible to predict
real interest rate
the interest rate corrected for the effects of inflation
the number of percentage points of annual output lost in the process of reducing inflation by 1 percentage point
government policy aimed at protecting people against the risk of adverse events
a situation in which quantity supplied is greater than quantity demanded
total revenue (in a market)
the amount paid by buyers and received by sellers of a good, computed as the price of the good times the quantity sold