Why are climate and environmental quality considered to be public goods? What are the implications?
What will be an ideal response?
The climate and the quality of the environment are considered public goods because no one can be excluded from consuming these goods, and one person's consumption of either good does not reduce the quantity that is available to others. This means that, because it can be costly to protect the environment, a single person or country has little incentive to do so.
A-head: ECONOMICS OF CLIMATE CHANGE
Concept: Public goods, tragedy of the commons
You might also like to view...
According to the graph shown, if the economy is operating in autarky and decides to open trade with a tariff, the impact on domestic demand is they will:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. decrease consumption from 1500 to 1150.
B. increase consumption from 815 to 1500.
C. increase consumption from 815 to 1150.
D. decrease consumption from 1500 to 815.
Technically speaking, maximizing profit means finding the maximum difference between
a. TR and TC b. MR and MC c. price and ATC d. price and AR e. ATC and MC
The value of an hour of leisure can best be estimated as
A. Total recreational expenditures divided by hours of leisure. B. Zero since no income is earned. C. The value of any productive work, although such a value is lower than what could have been earned. D. The hourly wage that could have been earned.
Are there key differences between an increase in the capital stock and an improvement in the level of technology?
What will be an ideal response?