State if the following government activity is/is not associated with adjustment to an externality or provision...

State if the following government activity is/is not associated with adjustment to an externality or provision of a public good. Explain your answer in detail. a) Government of Saskatchewan provides weather forecasts free of charge b) Government increases seats at post-secondary institutions c) Canada’s day fireworks celebration d) Prohibition of smoking in public places e) Imposition of taxes on tobacco smokers

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Expert Solution

Answer a) Provision of public good:

As the government is providing the updates regarding the weather free of cost which means that no individual can be excluded from it and the awareness to any one individual does not prevent the other individual from knowing it.

Answer b.) Provision of public good:

As the governmemt is providing the education which is a public good.

Answer C) Provision of a public good

The firework is an example of a public good as no individual can be excluded from it once it starts.

Answer d.) Adjustment to an externality

As we know that smoking causes harm to the individuals even if they don't smoke but stand/sit near the smoking zone which is a type of negative externality.

Prohibition of smoking is in a way an effort to decrease the negative exyernality asoociated with smoking.

Answer e.) Adjustment to externality

Tobacco eating induces the neagtive externality on the individual who eat tobacco.

So, taxes on tobacco smokers thus helps reduce the negative effects associated with tobacco and thus increase the overall welfare in the society.

Rahul Sunny answered 3 weeks ago

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