ECON1110_HW6_solutions - Introductory Microeconomics ECON...

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Introductory Microeconomics – ECON 1110 Homework Assignment #6 - Solutions The homework assignment is due at the start of class on Thursday, Dec 4.  You are permitted to  work in small groups, but you must submit your individual answers.  Please be neat, or else you may  not receive full credit.  On any graphs you must correctly label all axes with the appropriate units of  measure.  Note that unless information is presented to the contrary, you can assume that the demand  curve is downward sloping and the supply curve is upward sloping. 1. You must indicate whether the following statement is True, False, or Uncertain, and explain  your reasoning.  Points will be awarded solely on the basis of your explanation.  “One  economically defensible argument in favor of government provided health care is that there  is an element of public goods to providing services to those who can’t afford to pay for  them” UNCERTAIN:  Public goods are non-rival and non-excludable; providing health services is rival  and is excludable so the actual service is not a public good.  However, if people get value from  knowing that these health services are being provided, this value is a public good.  That is, once the 
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This note was uploaded on 03/27/2009 for the course ECON 1110 taught by Professor Wissink during the Fall '06 term at Cornell.

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ECON1110_HW6_solutions - Introductory Microeconomics ECON...

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