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July 23, 2014

Homework Help: Macroeconomics

Posted by A-tan on Sunday, September 27, 2009 at 9:37pm.

All houses in LA pay for weekly trash service. I pay $45 per quarter to have trash removed from my house once a week. My neighbor, the little old lady next door, always has much less trash than we do. I believe it would be good for the total economy if all houses had to pay for trash service by the pound. If we had to pay per each pound of trash that was removed rather than the current system of paying for a weekly pick-up of all trash. What are the possible incentive behaviors or unintended consequences that would happen if the city government instituted such a policy?

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