Suppose wearing face masks during the coronavirus pandemic leads to positive externalities, given that persons you come into contact with are less likely to contract the virus. If so, then, absent government subsidies, the number of persons wearing face masks will be greater than the optimal level from society's point of view the number of persons wearing face masks will be below the optimal level from society's point of view more people will want to wear face masks because external benefits tend to play a role in private decisions, such as whether to wear a face mask COMEND the number of persons wearing face masks will be optimal from society's point of view

Suppose wearing face masks during the coronavirus pandemic leads to positive externalities, given that persons you come into contact with are less likely to contract the virus. If so, then, absent government subsidies, the number of persons wearing face masks will be greater than the optimal level from society's point of view the number of persons wearing face masks will be below the optimal level from society's point of view more people will want to wear face masks because external benefits tend to play a role in private decisions, such as whether to wear a face mask COMEND the number of persons wearing face masks will be optimal from society's point of view

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

How do preferences on the available vaccine for COVID19 affect or contribute to microeconomics? Please answer in 250 words.
In 2006, the Australian Government incorporated research into corporate social responsibilities to determineif there is a need to include social and environmental responsibilities within the Corporation Act throughamendment procedure. It was decided not to incorporate a particular regulation through legislation, insteadrely upon the 'market forces' to encourage companies to do the 'right thing'. This viewpoint was expressedthat if companies did not look after the environment or did not act in a socially responsible manner, peoplewould not want to consume the organisations' products. From the equity market perspective, potentialinvestors would not want to invest in the organisations, and further workers wouldn't want to work for them,and so forth. Because companies were aware of such market forces, they would do the 'right thing' even inthe absence of legislation.Requirement:1) Using theories such as Public Interest Theory, Capture Theory and Economic Interest Group Theoryto critically…
how does the covid vaccination affect or influence one’s personal & family health. how does it affect society as well?
Harold smokes cigarettes but his office mate Kumar hates smoking. Harold and Kumar havethe following utility functions:UH = 100 + 10z – 0.1z2UK = 100 – 10z,where z is the number of cigarettes smoked by Harold (and UH includes the cost of cigarettes).Determine:a. The number of cigarettes smoked by Harold when the external effect on Kumar is ignored;b. The socially optimal number of cigarettes smoked. To find the socially optimal numberof cigarettes smoked, we create a social welfare function (SWF). The SWF is definedas the sum of Harold’s utility and Kumar’s utility. Using this approach, find the sociallyoptimal level of cigarettes that should be smoked by Harold;c. The Pigouvian tax needed to reach this social optimum;d. The outcome with Coasian bargaining when the property right is assigned Harold;e. The outcome with Coasian bargaining when the property right is assigned to Kumar.
how has the pandemic affected the supply and demand of agriculture products? describe briefly
Describe briefly, the hedonic price method of estimating benefits. Use an environmental example to illustrate your answer. Explain why this valutation
Both Wisconsin and Michigan border Lake Michigan. The lake is becoming polluted and both states are deciding whether or not to clean it. If Wisconsin decides to clean the lake it will cost 1200 and generate social benefits of 1500 – however, Wisconsin will receive only 1100 of those social benefits while Michigan will receive the other 400. If Michigan cleans the lake, it will cost them 700 and generate social benefits of 900 – however, Michigan will receive only 600 of those benefits while Wisconsin will receive the remaining 300. If a state does not clean the lake, it experiences a cost of $0. If Wisconsin does not clean the lake and Michigan does then the payoffs will be Question 9 options: A) Wisconsin gains 200, Michigan gains 100 B) Wisconsin gains 300, Michigan loses 100 C) Wisconsin gains 300, Michigan gains 100 D) Wisconsin gains 200, Michigan loses 100
Using economic reasoning, why are wearing masks important during this COVID 19 pandemic
A pharmaceutical company develops a vaccine against malaria, a disease that kills large numbers of people worldwide. This vaccine market presents Opositive externalities Onegative externalities Opublic goods Osocial cost and as a result Othe private demand for vaccine is greater than the social demand Othe social demand for vaccines is greater than the private demand Othe market will result in an over production of vaccines Othe price of the vaccine will be too low to generate profitfor the firm ZER F11 F12 F6 F7 F8 F9 F10 prt s
Do COVID-19 Vaccines create external benefit? Why? Then should the government subsidize this activity?
Suppose that we have a model that estimates that taking the COVID-19 vaccine creates a positive externality to society that is at least equal to $1500 per vaccine. (Amazing, right? Well, remember that I made it up.) This means that for every person that takes the vaccine, the benefits to society will be $1500 or more. a. First, what factors do you think go into estimating the benefits of $1500 per vaccine. This is kind of a brainstorming question – but it is worth points so don’t skip it. b. What is the relationship between the equilibrium quantity of vaccines and the socially optimal quantity of vaccines?
Why is the presentaion of corparate results increasingly accompanied by the presentation of a socially responsible bussines report. Provide 3 reasons