On a chart that organizes countries from poorest (left) to richest (right) based on average income, and where the width of each country's bar represents its population size, a country depicted with a very wide bar on the far right of the chart would represent a nation with a large population and a low average income.
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Ch.10 Market successes and failures: The societal effects of private decisions - The Economy 2.0 Microeconomics @ CORE Econ
The Economy 2.0 Microeconomics @ CORE Econ
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On a chart that organizes countries from poorest (left) to richest (right) based on average income, and where the width of each country's bar represents its population size, a country depicted with a very wide bar on the far right of the chart would represent a nation with a large population and a low average income.
In a large, competitive market for a specific type of apple, the price settles at $3 per kilogram. Assuming there are no significant effects on third parties from the production or consumption of these apples, what does this market price most accurately represent?
A city is considering how to manage its public transportation system. An economist observes that in addition to the direct benefit to riders, a widely used bus system also reduces traffic congestion and air pollution for all residents. In the current market, the bus fare is determined by the intersection of supply and the demand from riders. How does this bus fare most likely compare to the marginal social benefit of a single bus ride?
A factory produces a chemical sold in a competitive market. The production process releases a pollutant into a nearby river, which negatively impacts the local fishing industry. Assuming the market price of the chemical is determined solely by the supply from the factory and the demand from its direct buyers, how does this price relate to the marginal social benefit of the chemical?
Match each market scenario with the most likely relationship between the market price of the good and its marginal social benefit (MSB).