Microeconomics,, 16th Canadian Edition

16.1 Basic Functions of Government LO 1 The government’s monopoly of violence gives it the ability to enforce laws and protect i ...

16.2 The Case for Free Markets LO 2 The case for free markets can be made in two different ways. The “formal defence” is based o ...

16.3 Market Failures LO 3, 4, 5 Market failure refers to situations in which the free market does not achieve allocative efficie ...

16.4 Broader Social Goals LO 6 Changing the distribution of income is one of the roles for government intervention that members ...

16.5 Government Intervention LO 7 Major tools of microeconomic policy include (a) public provision, (b) redistribution, and (c) ...

Key Concepts Market failure Externalities Private and social cost Excludable and non-excludable goods Rivalrous and non-rivalrou ...

Study Exercises MyLab Economics Make the grade with MyLab Economics™: All Study Exercises can be found on MyLab Economics™. You ...

Fill-in-the-Blank 1. Fill in the blanks to make the following statements correct. a. The “formal defence” of free markets is tha ...

parties is known as. If there is a divergence between these two marginal costs, then we can say that are present. b. The margina ...

restaurant meal or a sofa) is known as a good and is most efficiently provided by the. b. A good that is rivalrous and non-exclu ...

Review 4. In each case, identify any divergence between social and private costs or social and private benefits. a. Cigarette sm ...

into others’ faces. You cut your lawn early on a Sunday morning. A firm conducts R&D and generates useful “basic” knowledge ...

toxic waste as a by- product. Suppose healthcare is provided privately in a free market and families are responsible for paying ...

d. Explain why the government might choose to subsidize vaccinations (or perhaps even provide them for free). Are there both eff ...

Pacific salmon a. Which of the goods in the table are public goods? Explain. b. Which are common-property resources? Explain. 9. ...

a. If residents are permitted unlimited access to the use of the grazing land at a zero price, what is the private marginal cost ...

assistance (as they have done in the past when the world price of pork declined steeply). a. Explain why economists call such lo ...

Problems 12. Consider the following diagram showing the monthly market demand for electricity, where the electricity is generate ...

cost associated with producing one kilowatt hour (kwh) of electricity is $0.25, draw the marginal social cost curve for this mar ...

10 0 0 100 $32 000 a. Suppose it costs $35 000 to build the park. Should the town do it? b. Suppose the park costs only $20 000 ...