- 13.1: Do market demand curves reflect positive externalities? Why or why ...
- 13.2: Suppose that Sony's R&D investment in digital devices has increased...
- 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 residents in a neighborhood tidy it and keep it neat, there ar...
- 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 non-rival in consumption? a. slice of pizza...
- 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 | 2nd Edition
the ability to produce a good using fewer inputs than another producer
the tendency for the mix of unobserved attributes to become undesirable from the standpoint of an uninformed party
the limit on the consumption bundles that a consumer can afford
the process by which unions and firms agree on the terms of employment
the paper bills and coins in the hands of the public
the quantity of output that minimizes average total cost
input costs that require an outlay of money by the firm
a person who receives the benefit of a good but avoids paying for it
the idea that taxpayers with similar abilities to pay taxes should pay the same amount
a good for which, other things being equal, an increase in income leads to a decrease in demand
the revenue the government raises by creating money
marginal rate of substitution
the rate at which a consumer is willing to trade one good for another
the amount of money the banking system generates with each dollar of reserves
two goods with straight-line indifference curves
a curve that shows the short-run trade-off between inflation and unemployment
the stock of equipment and structures that are used to produce goods and services
price elasticity of demand
a measure of how much the quantity demanded of a good responds to a change in the price of that good, computed as the percentage change in quantity demanded divided by the percentage change in price
the relationship between quantity of inputs used to make a good and the quantity of output of that good
the change in consumption that results when a price change moves the consumer along a given indifference curve to a point with a new marginal rate of substitution
the costs that parties incur in the process of agreeing to and following through on a bargain