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Private Bads
Private bads are undesirable items or conditions whose negative effects are confined to an individual or a small, specific group. Examples include personal household refuse or an unpleasant-smelling drain, which are problems an individual might pay to have removed or fixed.
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Economics
Economy
Introduction to Microeconomics Course
CORE Econ
Social Science
Empirical Science
Science
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Public Bads
A factory produces fertilizer for farms. A byproduct of the manufacturing process is a significant amount of industrial waste. The factory must pay a waste management service to haul this waste away and dispose of it. Based on this situation, which of the following is the economic 'bad'?
Applying the Concept of an Economic Bad
An item that has no market price is considered an economic 'bad'.
Identifying an Economic Bad in a Scenario
Analyze each of the following scenarios and match it to the economic concept it best illustrates.
The Duality of Economic Goods and Bads
A software development company wants to maintain its current team size of 150 engineers. The company experiences a weekly employee departure rate of 2%. To keep the number of engineers constant, how many new engineers must the company hire each week?
Which of the following scenarios best illustrates the concept of an economic 'bad'?
A homeowner finds that the large, mature tree in their yard, while providing valuable shade in the summer, requires them to spend $200 each autumn on professional services to clear and dispose of fallen leaves. From an economic perspective, how should the fallen leaves be classified in this context?
Private Bads
Whereas an individual is willing to pay to acquire more of an item they value, they are often willing to pay to ________ an item or condition they find undesirable.
Learn After
A person's car gets a flat tire, creating an inconvenience that affects only them. They pay a service to have the tire replaced. In economic terms, which of the following situations is most analogous to the flat tire?
Identifying Economic Bads
Applying the Concept of a Private Bad
Widespread air pollution from a single factory that lowers the air quality for an entire city is an example of a private bad because the negative effects originate from a single, identifiable source.
Match each scenario with the economic term that best describes it.
An undesirable economic condition whose negative effects are confined to a specific individual or a very small group, such as a leaky faucet in a single apartment, is known as a ____.
Differentiating Economic Problems
Analysis of an Economic Nuisance
An economics instructor is looking for the clearest example to demonstrate a situation where an undesirable condition's negative effects are confined to a specific, small group or individual. Which of the following scenarios best exemplifies this concept?
Distinguishing the Scope of Economic Nuisances
Widespread air pollution from a single factory that lowers the air quality for an entire city is an example of a private bad because the negative effects originate from a single, identifiable source.