Question 1

Which of the following is a negative externality connected to attending college?

Accepted Answer

A)  The fact that completion of a college degree acts as a signaling mechanism to employers. 
B)  The fact that other costs, such as books and materials, are incurred in addition to tuition and fees. 
C)  The fact that your college has required that all individuals living in student housing either get or show they have already obtained vaccinations against all communicable diseases. 
D)  The fact that the people in the next room play loud music at hours you want to sleep. 
E)  The fact that you will get benefits from college that you don't currently anticipate. 
A)  The fact that completion of a college degree acts as a signaling mechanism to employers. 
B)  The fact that other costs, such as books and materials, are incurred in addition to tuition and fees. 
C)  The fact that your college has required that all individuals living in student housing either get or show they have already obtained vaccinations against all communicable diseases. 
D)  The fact that the people in the next room play loud music at hours you want to sleep. 
E)  The fact that you will get benefits from college that you don't currently anticipate.

Question 2

Common property resources like fish stocks in open waters tend to be over-utilized because:

Accepted Answer

A)  the marginal social cost is less than the private marginal cost. 
B)  the marginal social cost is always equal to the private marginal cost. 
C)  the marginal social cost is greater than the private marginal cost. 
D)  none of the above 
A)  the marginal social cost is less than the private marginal cost. 
B)  the marginal social cost is always equal to the private marginal cost. 
C)  the marginal social cost is greater than the private marginal cost. 
D)  none of the above

Question 3

In which of these situations would the Coase theorem be MOST likely to work?

Accepted Answer

A)  A thousand firms use a lake, there are no other users, all their costs could be reduced somewhat by polluting, but all would have lower water intake costs if the lake were clean. 
B)  A group of nine firms use a lake, there are no other users, all their costs could be reduced somewhat by polluting, but all would have lower water intake costs if the lake were clean. 
C)  Worldwide deep sea fishing rights need to be negotiated among thousands of fishermen from different countries. 
D)  One hundred and fifty nations need to come to an accord about CFC generation to combat ozone depletion. 
E)  A group of chemical firms high upstream on the Mississippi River have emissions that affect not only communities downstream along the river, but around the Gulf of Mexico as well. 
A)  A thousand firms use a lake, there are no other users, all their costs could be reduced somewhat by polluting, but all would have lower water intake costs if the lake were clean. 
B)  A group of nine firms use a lake, there are no other users, all their costs could be reduced somewhat by polluting, but all would have lower water intake costs if the lake were clean. 
C)  Worldwide deep sea fishing rights need to be negotiated among thousands of fishermen from different countries. 
D)  One hundred and fifty nations need to come to an accord about CFC generation to combat ozone depletion. 
E)  A group of chemical firms high upstream on the Mississippi River have emissions that affect not only communities downstream along the river, but around the Gulf of Mexico as well.

Which of the following is a negative externality connected to attending college?

Common property resources like fish stocks in open waters tend to be over-utilized because:

In which of these situations would the Coase theorem be MOST likely to work?

Preliminaries

The Basics of Supply and Demand

Consumer Behavior

Individual and Market Demand

Uncertainty and Consumer Behavior

Production

The Cost of Production

Profit Maximization and Competitive Supply

The Analysis of Competitive Markets

Market Power: Monopoly and Monopsony

Pricing With Market Power

Monopolistic Competition and Oligopoly

Game Theory and Competitive Strategy

Markets for Factor Inputs

Investment, Time, and Capital Markets

General Equilibrium and Economic Efficiency

Markets With Asymmetric Information

Filters

Exam 18: Externalities and Public Goods

Which of the following is a negative externality connected to attending college?

Common property resources like fish stocks in open waters tend to be over-utilized because:

In which of these situations would the Coase theorem be MOST likely to work?

Preliminaries

The Basics of Supply and Demand

Consumer Behavior

Individual and Market Demand

Uncertainty and Consumer Behavior

Production

The Cost of Production

Profit Maximization and Competitive Supply

The Analysis of Competitive Markets

Market Power: Monopoly and Monopsony

Pricing With Market Power

Monopolistic Competition and Oligopoly

Game Theory and Competitive Strategy

Markets for Factor Inputs

Investment, Time, and Capital Markets

General Equilibrium and Economic Efficiency

Markets With Asymmetric Information

Filters