Applied Learning Assignment #2COVID-19
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In the context of this pandemic, provide an example to explain the concept of a private good. What should the government role be in this case? What public policy do you recommend, if any? Explain your answer and provide links to the related material.
Fundamental Definitions:
What is Market Failure?
Market Failure is when forces of supply and demand fail to bring reasonable prices to consumers.
Define what an externality is, and how it relates to market failure.
This is a type of market exchange that goes from worse to better, or the opposite. This usually creates market failure because they over price the goods, then they wont be sold.
Provide a few (at least 3) examples of positive and negative externalities and explain why they are externalities.
1. Air pollution from motor vehicles, which leads to external costs imposed the community (Negative)
2. Air pollution from factories (negative)
3. Traffic congestion, due to an event (Negative)
4. Local communities providing security/ extra safety (positive)
5. Local towns providing safety meters and procautions (positive)
6. Free and easy health care for citizens (positive)
Consider some of the issues related to COVID-19 pandemic. Provide at least one example of people’s behavior that could be classified as a positive externality and one as a negative externality. Explain your answer and provide some evidence, such a links to newspaper articles.
Flattening the curve, by staying indoors and not exposing one self during this pandemic could be very useful.
What are rival or rivalrous goods? Provide 3 examples and explain/justify your answer.
Rival goods, which can only be purchased by one at a time. If I purchase a certain car, the other person can't because I already did.
What are non-rival or non-rivalrous goods? Provide 3 examples and explain/justify your answer.
Non rival good is when no one else can get exactly what the other person has. This can be something like a view, certain item or even some sort of safety. Non rivalrous goods is the consumption of what one person has, does not effect the other.
7. What are excludable goods. Provide 3 examples and explain your answer.
Excludable good is that it MAY be possible to to prevent others from getting things, if they do not have access to it. As in money wise or other factors.
8. What are non-excludable goods? provide 3 examples and explain your answer.
Non exculdable good is when it is not possible to exclude any other person from using this exact good. It is pretty much public to all. This can mean: Highways, state parks and or beaches.
9. Define private goods? Besure to use rival/non rival and excludable/non-excludable terms in your definition. Provide 3 examples and explaim your answer.
Private good, is one only one person or a small amount of people can use/ benefit off this one good. As in, if someone wants a certain car, (Like I said in the question above), another person cannot get the same exact one. It is private, meaning not the public can get their hands on it. This can go for almost any good.
10. Define public goods. In your definition make sure to use rival/non-rival and excludable/non-excludable terms. In addition, how are public goods related to market failure? Provide 3 examples and explain your answer.
Public good, is when someone can get their hands on that speicific good, no matter the circumstances. There probably wont be a shortage, and if their is its beacause too many people want this certain good. This can ultimately result in market failure, if the stock crashes.
11. What is a free rider?
A free rider is when the consumer wants to benefit from the good without having to pay the price. People do this by not paying off their morgages, and or credit cards.
12. Define common goods? In your definiton make sure that you use rival/non-rival and excludable/non-exludable terms. In addition, how are common goods related to market failure? Provide 3 examples and explain your answer.
Some common goods that exist could be:
Water, since everyone has access to it.
Air, unless polluted badly
Land, anyone is entitled to have/buy/use land
13. What is meant by "The tragedy of the commons"?
It is a problem that occurs when individuals exploit a shared resource to the extent that demand overwhelms supply and the resource then becomes unavailable to some or all.
14. What are club goods? In your definition make sure that you use rival/non-rival and excludable/non-excludable terms. In addition, how are club goods related to market failure? provide 3 examples and explain your answer.
Club goods are certain goods are non rival for consumption, with contracts etc.
An example could be :
Phone contract, television contract, car leasing, gym memberships.
COVID-19
In the context of this pandemic, provide an example to explain the concept of a private good. What should the government role be in this case? What public policy do you recommend, if any? Explain your answer and provide links to the related material.
A good example that could be a private good during this pandemic could be the use of face masks/ shields. In ordder to go outside, or to get into any store this is a mandatory good. The government claiming this could portentially save lives, there for this is a private good that is extremely beneficial to one self.
In the context of this pandemic, provide an example to explain the concept of a public good. What should the government role be in this case? What public policy do you recommend, if any? Explain your answer and provide links to the related material.
A public good that can be useful in this pandemic, would be health care. If someone catches this virus and does not seek the right medical attention and or health care, this could result in loosing a life. If the indiviudal has health care there is a possibilty they can pull through.
In the context of this pandemic, provide an example to explain the concept of a free rider. What should the government role be in this case?
The concept of a free rider during this pandemic could be someone, who is not doing social distancing as it is mandatory from the state/ government. As well as going outside and not using a face mask, and or potentially recieving a fine.
https://www.nytimes.com/2020/04/17/smarter-living/neighbors-not-practicing-social-distancing-heres-what-to-do.html
Fundamental Definitions:
What is Market Failure?
Market Failure is when forces of supply and demand fail to bring reasonable prices to consumers.
Define what an externality is, and how it relates to market failure.
This is a type of market exchange that goes from worse to better, or the opposite. This usually creates market failure because they over price the goods, then they wont be sold.
Provide a few (at least 3) examples of positive and negative externalities and explain why they are externalities.
1. Air pollution from motor vehicles, which leads to external costs imposed the community (Negative)
2. Air pollution from factories (negative)
3. Traffic congestion, due to an event (Negative)
4. Local communities providing security/ extra safety (positive)
5. Local towns providing safety meters and procautions (positive)
6. Free and easy health care for citizens (positive)
Consider some of the issues related to COVID-19 pandemic. Provide at least one example of people’s behavior that could be classified as a positive externality and one as a negative externality. Explain your answer and provide some evidence, such a links to newspaper articles.
Flattening the curve, by staying indoors and not exposing one self during this pandemic could be very useful.
What are rival or rivalrous goods? Provide 3 examples and explain/justify your answer.
Rival goods, which can only be purchased by one at a time. If I purchase a certain car, the other person can't because I already did.
What are non-rival or non-rivalrous goods? Provide 3 examples and explain/justify your answer.
Non rival good is when no one else can get exactly what the other person has. This can be something like a view, certain item or even some sort of safety. Non rivalrous goods is the consumption of what one person has, does not effect the other.
7. What are excludable goods. Provide 3 examples and explain your answer.
Excludable good is that it MAY be possible to to prevent others from getting things, if they do not have access to it. As in money wise or other factors.
8. What are non-excludable goods? provide 3 examples and explain your answer.
Non exculdable good is when it is not possible to exclude any other person from using this exact good. It is pretty much public to all. This can mean: Highways, state parks and or beaches.
9. Define private goods? Besure to use rival/non rival and excludable/non-excludable terms in your definition. Provide 3 examples and explaim your answer.
Private good, is one only one person or a small amount of people can use/ benefit off this one good. As in, if someone wants a certain car, (Like I said in the question above), another person cannot get the same exact one. It is private, meaning not the public can get their hands on it. This can go for almost any good.
10. Define public goods. In your definition make sure to use rival/non-rival and excludable/non-excludable terms. In addition, how are public goods related to market failure? Provide 3 examples and explain your answer.
Public good, is when someone can get their hands on that speicific good, no matter the circumstances. There probably wont be a shortage, and if their is its beacause too many people want this certain good. This can ultimately result in market failure, if the stock crashes.
11. What is a free rider?
A free rider is when the consumer wants to benefit from the good without having to pay the price. People do this by not paying off their morgages, and or credit cards.
12. Define common goods? In your definiton make sure that you use rival/non-rival and excludable/non-exludable terms. In addition, how are common goods related to market failure? Provide 3 examples and explain your answer.
Some common goods that exist could be:
Water, since everyone has access to it.
Air, unless polluted badly
Land, anyone is entitled to have/buy/use land
13. What is meant by "The tragedy of the commons"?
It is a problem that occurs when individuals exploit a shared resource to the extent that demand overwhelms supply and the resource then becomes unavailable to some or all.
14. What are club goods? In your definition make sure that you use rival/non-rival and excludable/non-excludable terms. In addition, how are club goods related to market failure? provide 3 examples and explain your answer.
Club goods are certain goods are non rival for consumption, with contracts etc.
An example could be :
Phone contract, television contract, car leasing, gym memberships.
COVID-19
In the context of this pandemic, provide an example to explain the concept of a private good. What should the government role be in this case? What public policy do you recommend, if any? Explain your answer and provide links to the related material.
A good example that could be a private good during this pandemic could be the use of face masks/ shields. In ordder to go outside, or to get into any store this is a mandatory good. The government claiming this could portentially save lives, there for this is a private good that is extremely beneficial to one self.
In the context of this pandemic, provide an example to explain the concept of a public good. What should the government role be in this case? What public policy do you recommend, if any? Explain your answer and provide links to the related material.
A public good that can be useful in this pandemic, would be health care. If someone catches this virus and does not seek the right medical attention and or health care, this could result in loosing a life. If the indiviudal has health care there is a possibilty they can pull through.
In the context of this pandemic, provide an example to explain the concept of a free rider. What should the government role be in this case?
The concept of a free rider during this pandemic could be someone, who is not doing social distancing as it is mandatory from the state/ government. As well as going outside and not using a face mask, and or potentially recieving a fine.
https://www.nytimes.com/2020/04/17/smarter-living/neighbors-not-practicing-social-distancing-heres-what-to-do.html