Topic 4: Externalities‚ Pollution and Global Warming ECON 1210B Economics and Society 1 Introduction Recall: Markets are usually a good way to organize economic activity In the absence of market failures‚ the market outcome is efficient‚ maximizes total surplus One major type of market failure: externalities Externality: the uncompensated impact of one person’s actions on the well-being of a bystander 2 Externalities and Efficiency In the presence of externality‚ market equilibrium
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First let’s define externality: Definition of ’Externality’ A consequence of an economic activity that is experienced by unrelated third parties. An externality can be either positive or negative. (Ref: www.investopedia.com) As an example of the above definition: Pollution from a factory can affect the health of nearby residents – negative The same factory can provide jobs to nearby residents – positive Negative externality is two part: production and consumption. I will be using both
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SUPPLY‚ DEMAND AND GOVERNMENT POLICIES When analyzing government policies‚ supply and demand are the first and most useful tools of analysis. Price controls such as‚ price ceiling‚ price floor and tax incidence mentioned in this chapter show how price controls affect economy. Price ceiling is a legal maximum on the price at which a good can be sold and price floor is a legal minimum on the price at which a good can be sold. Evaluating
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Policy and Regulations on China Real Estate Investment China is a country in the middle of a transition from a less developed country into a strong and highly developed country. Business opportunities attract many real estate investors trying to get a piece of this giant cake. There are however some obstacles preventing investors to enter the Chinese real estate market. The business environment is confusing at first and might be very different to the Western way of doing business. The Chinese real
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Government Regulation of Tobacco Products Dawn BUS 250 Corporate & Social Responsibilit March 7‚ 2010 Government Regulation of Tobacco Products Government regulation of tobacco has come under some fierce opposition. Naturally the big tobacco companies do not want any type of regulation and yet one company was a quiet supporter. This company‚ the Altria Group which is a parent company of Philip Morris‚ believed the bill would pass so they wanted to make sure they had a say when the
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Externalities‚ by definition‚ are the benefits or costs that affects someone who is not directly involved in the production or consumption of a good or service (Hubbard et al.‚ 2012). These externalities cause differences between private and social costs and benefits and inadvertently undermine the efficiency of a market. In this particular case‚ the production costs of any good that emits carbon as a byproduct is not just borne by the producers themselves‚ but also society as a whole. This pollution
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environmental science. After his traineeship he was offered permanency as a policy officer‚ eventually rising to the post of team leader. As a team leader Joseph felt he had gained the trust and respect of his four staff member and had learnt the basic skills of being a manager. Joseph applied for various management positions within his own department without success. Undeterred‚ he applied for a position in another government department responsible for environment and heritage and was successful. The
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Public Policy Influences Government Stakeholders: Government Stakeholders Influences Public Policy James Dykes Williams University: ORG-807 January 22‚ 2014 Public Policy Influences Government Stakeholders: Government Stakeholders Influences Public Policy The American people expect that government and government-reliant organizations will protect their interests when there are imminent threats to the well-being of citizens and humanity. In the process of sustaining trust from
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The Role of Government and Policy Making Public programs are established through legislation‚ which usually begins with a group of people concerned about a growing issue within a community or even nationwide. In order for an interest group to establish a public program‚ the concern must go through eight legislative tasks. In the first task the interest group must clearly define and execute a consensus on what the problem is and what the desired outcome is from legislation. This can be a difficult
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Role of Government in Policy Making Elisha D. Carson August 5‚ 2013 HSM/240 For this week’s assignment I was asked to explain legislative tasks and the overall role of the judiciary system in public policy making‚ in regards to child and family protection and permanency. I will touch base with how the laws influence the organization’s decision making and day to day operations as well as what the role the court system has played in shaping the policies that affect mothers and their
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