The main reason that a government imposes a tax on fossil fuels is to try and correct for the negative externality (pollution) which is produced when they are consumed. Without the tax there would be a market failure as car owners would be over consuming petrol as they are not being charged for the damage to the environment. There are 3 key aspects to this question which are; those that lose from a reduction, those that gain from a reduction and finally at what level the overall price for petrol was before the tax reduction. The major argument for maintaining the level of taxation on petrol and diesel is to protect the environment. When the social costs of consuming a good are higher than the private costs, there is said to be a negative externality.
1b)Coal is a fossil fuel, which means when it is burnt it releases unwanted pollutants which have a negative and harmful impact on our environment. These pollutants are: Carbon Dioxide- This gas is considered to be the most harmful pollutant as it contributes to global warming. Coal is attributed to approximately 20% of the total pollution globally per year of all the fossil fuels. Sulfur emissions- when sulfur mixes with oxygen a harmful substance is formed. SO2, sulfur dioxide effects our trees and water systems and is the prominent cause of acid rain.
------------------------------------------------- JAN 10 Section B Question 4 (b) Evaluate the argument that managers controlling large companies might follow policies which do not necessarily maximise the profits of the owners. 25 marks Kn Economic theory standardly assumes maximising behaviour on the part of economic agents. Consumers are assumed to maximise utility from consumption subject to their limited income, for example, while workers maximise income subject to the constraint of wanting leisure time. It is assumed that firms pursue profit maximisation, although a number of other maximising behaviours are possible in reality such as revenue maximisation or maximising the volume of sales, and these are sometimes thought likely to be pursued by the managers of large firms. It is also possible that managers do not adopt maximising behaviour at all, perhaps “satisficing” in response to shareholder discipline or that the policy of the firm is the result of complex interactions between various stakeholders.
The wind blows these acidic gases into building, cars, homes and trees. Water that runs of these buildings adds acid to the acid rain, making the combination more acidic than regular rain. Acid rain is measured by a pH scale, the lower the number, the more acidic, Vic versa. The effects of acid rain are, damages of forest soils, fish and other living organisms, it also affects lakes, streams and causes aluminum to be highly toxic to species and aquatic organisms. In North America acid rain affects the Adirondack and the Catskill Mountain in the state
When / if MR is higher than MC then MP would result in a profit for Company A. However, if MC is higher than MR Company A, would experience a loss. Utilizing method the Total Revenue – Total cost method; TR-TC method which depends on P (profit) = Revenue - Cost. When utilizing this method the first step is to determine the results of this equation P=TR-TC. Based on the given scenario for Company A and with utilizing the given data table.
Answer: The paradox of value - is value of a good with a lower price but with a high value and a good with higher price with lower value. Paradox value is resolved by distinguishing between total utility and marginal utility. 12. What are the similarities between utility and temperature? Answer: They are both abstract concepts.
However, within this broad framework, many details need to be worked out, and the costs and benefits to businesses will depend on how the government tackles these finer points (Horne, 2011). At the core of a cap and trade system is the pollution permit (often called an allowance), which is essentially a commodity created by governments in recognition that the atmosphere cannot be treated as a free dumping ground. Businesses regulated by cap and trade are required to own one tonne’s worth of pollution permits for every tonne of pollution they produce (Horne, 2011). If pollution permits are costly, businesses will choose to reduce their pollution so they need fewer permits. Like a carbon tax, this approach strengthens the economic case for investing in clean energy (Horne,
While the invisible hand cannot guarantee efficiency, it is better at guaranteeing equity. ANSWER: F TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxx]. The two broad reasons for a government to intervene in the economy are to promote efficiency and to promote equity. ANSWER: T TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxxi]. Market failure refers to a situation in which the market does not allocate resources efficiently.
-Activists in India charged that the company’s bottling plants used too much water depriving local villagers of supplies for drinking and irrigation - Primary Stakeholders: Coca-Cola, local villagers, non-governmental organizations and India’s government - Expectations v. Performance: There were multiple concerns raised by stakeholders such as environment and government bodies, and various organizations that were creating awareness against the company due to the above discussed issues. Their expectation was that the company should be a responsible social entity that is accountable to the community in which it operates, and hence it has to change its ways in a way that stops causing harm to the larger society.
In this mixture, there are no enzymes present and therefore no products are formed. The reaction rate was rated 0, just as we anticipated. 2. The 2nd experiment was a mixture of 2 mL H2O2 and 0.1g Manganese dioxide. We can use the same principal we used for the first experiment, Manganese dioxide is not a protein, not an enzyme, it is a catalyst.