​A Rain Barrel Is a Container That Captures and Stores

question 119

Multiple Choice

​A rain barrel is a container that captures and stores rainwater for landscape and garden use during dry periods. Rain barrels provide an external benefit to the community through water conservation. If the government offers a per unit subsidy on rain barrels equal to the per-unit externality, then

• A)​the after-subsidy equilibrium quantity of rain barrels will be less than the socially optimal quantity of rain barrels.
• B)​the after-subsidy equilibrium quantity of rain barrels will be more than the socially optimal quantity of rain barrels.
• C)​the after-subsidy equilibrium quantity of rain barrels will equal the socially optimal quantity of rain barrels.
• D)​market incentives will be distorted and move the allocation of resources away from the social optimum.

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Definitions:

Vector

An organism, typically an insect or arthropod, that transmits a disease or parasite from one animal or plant to another.

Malaria

A life-threatening disease caused by parasites that are transmitted to people through the bites of infected female Anopheles mosquitoes.

Transmission

The process by which a disease or condition is passed from one individual to another, through direct contact, vector, or environmental means, critical for understanding its spread and control.

Food Poisoning

Illness caused by consuming contaminated food, characterized by symptoms such as nausea, vomiting, and diarrhea.