Bill and Jill Are Discussing Whether to Vacation in June

question 89

Essay

Bill and Jill are discussing whether to vacation in June or July.Although Bill initially has little preference,as they continue to discuss the matter he become increasingly committed to a June vacation.Use the concepts of reactance and the fundamental attribution error to explain Bill's commitment.

Understand the concept of externalities and how they affect social costs and benefits.

Calculate the social cost of producing goods in the presence of external costs.

Evaluate the effects of externalities on the efficiency of the market outcomes.

Identify and justify the use of taxes or subsidies to achieve social optimum.

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Definitions:

Richard Nixon

The 37th President of the United States, serving from 1969 until his resignation in 1974, known for his role in the Vietnam War and the Watergate scandal.

White House Tapes

Audio recordings of conversations and meetings in the White House, famously associated with President Nixon's administration and the Watergate scandal.

Pentagon Papers

Informal name for the Defense Department’s secret history of the Vietnam conflict; leaked to the press by former official Daniel Ellsberg and published in the New York Times in 1971.

Freedom-Of-The-Press

The right to publish and disseminate information, opinions, and ideas without government restriction or censorship.