FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 16: Externalities

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

Multiple Choice

Review LaterAdd Note

Review Later

(Table: Externalities from Parks) The table Externalities from Parks shows the marginal social benefit and the marginal social cost of preserving various amounts of land in a city for a public park.If the government wants to achieve the optimum amount of land for the park, it could use a Pigouvian _________ of _.

A) tax; $300 .
B) tax; $150
C) subsidy; $150
D) subsidy; $450

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

Figure: The Quantity of Pollution (Figure: The Quantity of Pollution) Look at the table The Quantity of Pollution.The socially optimal level of pollution emissions for this economy is:

A) 0.
B) 50.
C) 100.
D) 150.

E) None of the above
F) A) and B)

Correct Answer

verified

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

Laws that require, for example, vehicles to have catalytic converters or that restrict or prohibit leaf burning are both examples of:

Pollution has ________ and _.

Which of the following best describe tradable emissions permits?

(Table: Coal Mine Pollution) The table Coal Mine Pollution shows the marginal social benefit and the marginal social cost of various amounts of pollution from a coal mine.The efficient quantity of pollution is tons.

Both emissions taxes and tradable emissions permits:

Tradable pollution permits are a(n) :

The marginal social cost of pollution rises as the quantity of pollution emissions:

With tradable emissions permits, the main problem is to determine the , while with emissions taxes the main problem is to determine the _.

Figure: Efficiency and Pollution (Figure: Efficiency and Pollution) Look at the figure Efficiency and Pollution.If the government imposed an environmental standard that did not allow the quantity of pollution to exceed 20 tons, there would be:

Figure: Pollution and Efficiency (Figure: Pollution and Efficiency) Look at the figure Pollution and Efficiency.If this market, where sulfur emissions are a result of production, produced ________ units of emissions, then _.

A negative externality:

An externality is said to be internalized:

The idea that even in the presence of externalities an economy can reach an efficient solution as long as transaction costs of making a deal are low is known as:

As the quantity of pollution emissions rises, the marginal social cost of pollution:

If a good that involves external costs is priced to take these costs into account, then its price will:

There are two plants (A and B) in an industry.To reduce pollution, the government has imposed environmental standards forcing each plant to cut emissions by 60%.At the emissions standard, the marginal social benefit of pollution for plant A is $500, and the marginal social benefit of pollution for plant B is $125.The same level of pollution can be achieved at a lower cost by:

Figure: Positive Externalities and the Production of Semiconductor Chips (Figure: Positive Externalities and the Production of Semiconductor Chips) Look at the figure Positive Externalities and the Production of Semiconductor Chips.If the marginal external benefit of producing a chip is $10, then the socially optimal quantity of chips is ________ and the socially optimal price is _.

Tony has a cell phone, and his cell phone service provider is Verizon.When he calls his wife, Meleah, another Verizon customer, he does not have to pay for those minutes.The more Verizon customers there are in the market, the more benefit Tony receives.This is an example of: