Transforming a Public Bad
Imagine a region is afflicted by 'acid rain' that damages all unprotected property. A company then invents and sells a special protective coating that, when applied to a building or vehicle, makes it completely immune to the rain's corrosive effects. Explain how this invention alters the economic classification of the acid rain for the property owners in the region. Specifically, what characteristic of the 'public bad' has been changed?
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.10 Market successes and failures: The societal effects of private decisions - The Economy 2.0 Microeconomics @ CORE Econ
Analysis in Bloom's Taxonomy
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A coastal town is plagued by unusually loud, disruptive noise from a nearby shipping lane, a negative condition affecting all residents. An engineering firm develops and sells a soundproofing technology that, when installed in a home, completely eliminates all exterior noise. How does the availability of this soundproofing technology alter the economic classification of the noise pollution for the town's residents?
The invention of a vaccine that provides complete immunity to a contagious disease effectively eliminates that disease as a public bad for the entire population.
Transforming a Public Bad
Excludability of a Public Bad
Match each scenario describing a widespread negative condition (a public bad) with its correct economic classification based on the ability to protect individuals from its effects.
The Economics of Disease Prevention
A new, highly irritating but non-lethal airborne pollen spreads across a region, causing severe allergies for all residents. A company then markets an affordable, over-the-counter pill that completely blocks the allergic reaction for anyone who takes it. The creation of this pill effectively makes the negative effects of the pollen ____ for the individuals who choose to use the medication.
A new computer virus begins to infect unprotected systems worldwide. A company develops and sells an antivirus program that offers complete immunity. Arrange the following statements to illustrate the economic transformation of the virus from a non-excludable to an excludable public bad.
A tropical city is afflicted by a widespread, debilitating mosquito-borne virus, a negative condition impacting all residents. A technology firm develops and markets a personal, wearable device that creates an impenetrable barrier against mosquitoes for the wearer. How does the availability of this device alter the economic classification of the virus for the city's population?
A major city is experiencing a prolonged and severe heatwave, a dangerous condition that negatively affects all residents. From an economic perspective, which of the following interventions best illustrates the transformation of this public bad into an excludable one?