Part 9A - Externalities 1. Pick one (or more, if you\'d like) of the following s
ID: 1228186 • Letter: P
Question
Part 9A - Externalities
1. Pick one (or more, if you'd like) of the following statements, and tell me if you agree, disagree, and why. Give me a normative argument that could convince Congress.
a) Education has so many positive externalities, it should be free. In fact, we should consider paying top students to attend school.
b) Education has so many positive externalities, any foreign aid that we provide to other nations should be given almost exclusively in education development.
c) McDonalds, other fast food chains, and food producers using trans fats are creating an obesity epidemic in the United States that presents us with the most expensive healthcare system in the world. These food corporations reap monster profits, and let the externalities of healthcare costs fall onto others. Because of this, trans fats, saturated fats, etc. should be taxed heavily by the gram as consumed to pay for this.
d) The U.S. Military provides an enormous positive externality to other nations by serving as the world's police. In working to keep ourselves safe, we keep many other nations safe, who can enrich themselves much faster by not having to invest in a military. Because of this, we should demand military payments from all OECD nations based on a proportion of troop and hardware commitments in the military actions of the past two decades.
e) Something else that you can think of?
Part 9B - Public and Private Goods
1. Suppose you wanted to be President of the United States as a Republican. Your conservative base is going to insist that you shrink the budget. Okay, so there are some goods being provided by our government as public goods that perhaps would exist simply through market forces. Some of these government services should be private (a conservative normative statement). By the way, this is also one of the requirements that the World Bank and IMF will make of developing countries before giving them loans: privatize businesses, and shrink your government sector. Anyway, what would be your list of top programs to be cut, or privatized, and why?
Part 9C - The Tragedy of the Commons
1. example of life, work, school, etc. where a commons good was created. Then tell me how it could have been "fixed" by turning it into a private good for greater efficiency.
HELP FOR MICROECONOMICS
Explanation / Answer
a) Education has so many positive externalities, it should be free. In fact, we should consider paying top students to attend school.
Agree
education should be free as it would encourage more students to attend school,thus making them skilled and finally a contribution to GDP.
b) Education has so many positive externalities, any foreign aid that we provide to other nations should be given almost exclusively in education development.
Disagree
undoubtedly education has positive externalities but contributing exclusively to education development might not help other nation always.(for eg during floods,disasters)
c) McDonalds, other fast food chains, and food producers using trans fats are creating an obesity epidemic in the United States that presents us with the most expensive healthcare system in the world. These food corporations reap monster profits, and let the externalities of healthcare costs fall onto others. Because of this, trans fats, saturated fats, etc. should be taxed heavily by the gram as consumed to pay for this.
Agree
these should be taxed heavily so as to avoid increased consumption of unhealthy food.
d) The U.S. Military provides an enormous positive externality to other nations by serving as the world's police. In working to keep ourselves safe, we keep many other nations safe, who can enrich themselves much faster by not having to invest in a military. Because of this, we should demand military payments from all OECD nations based on a proportion of troop and hardware commitments in the military actions of the past two decades.
partially agree
As U.S. Military provides an enormous positive externality to other nations by serving as the world's police , it can demand military payments from all OECD nations based on a proportion of troop and hardware commitments in the military actions but in future rather than for past two decades which are gone. There needs to be an agreement between U.S. and other nations for same so as to have clear understanding.