ECO220 Microeconomics Unit 4 Individual Project Solution
ECO 220 Microeconomics Unit 4 IP Solution
This is for ECON220-1204A Week 4 IP:
Assignment Type: Individual Project Deliverable Length: 2 pages
Points Possible: 150 Due Date: 9/16/2012 11:59:59 PM CT
Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulates emitted by and local power plant, answer the following questions:
1. What two policies could you use to reduce the total amount of emissions?
2. Why do you think they each would work?
3. What would the benefits of each action be (besides emissions reduction)?
4. What would the costs of each action be?
5. How would you decide what was the best level of emission reduction?
Microeconomics: ECON220 - 1302B - 03
ECON/220 Microeconomics Unit 4 Individual Project Solution
ECO220 Microeconomics Unit 4 IP Solution
In this assignment you address the market failure called “externality” There are other forms of market failure: common resources, public goods, and monopoly. If the market has allowed the failure to maximize society’s net benefits, we as individuals or as government agencies intervene to improve market outcomes. State two methods that can be used to reduce the amount of emissions (pollution). Describe how each policy works to achieve the reduction in emissions. State and describe the benefits and the costs of each method.
The word policies is referring to the methods that can be used to reduce pollution; policy is not referring to environmental laws or to environmental policy. Once an optimal level of output has been chosen, the community must select which method to use to reduce emissions. The decision to choose a method is a separate decision from determining the level of emissions that is “optimal.” State how you would decide the best level of emission reduction. See pages 433-440 in Chapter 17 in textbook.
Use citations and sources within an APA format. Begin each citation and source with the name of the author or with the name of the organization that is responsible for the information.
ECON 220 Microeconomics Unit 4 Individual Projec