Railway Engines Create Sparks,which Sometimes Set Fire to Crops Planted

question 66

Essay

Railway engines create sparks,which sometimes set fire to crops planted near the tracks.A large number of farmers are affected,and transactions costs prevent the farmers and the railroad from negotiating bribes or side payments.The price of railway service is $250 per train,and each train causes $50 of crop damage.The accompanying diagram shows the relevant market for railway service.

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Definitions:

Regressive

A term especially used in taxation to describe a situation where the tax rate decreases as the amount subject to taxation increases.

Progressive

A political and social philosophy advocating for reforms and changes that aim to address inequality and improve the social welfare of the population.

National Debt

The complete monetary sum borrowed by a nation's executive body through various sources.

Federal Government Spending

The total expenses incurred by the national government on various services, infrastructure, debt interest, and public welfare programs.