Question 1

Which of the following would not be considered a negative externality?

Accepted Answer

A) loud rap music at 2 a.m.in the apartment next door to you 
B) traffic congestion 
C) an Alaskan oil spill 
D) measles vaccinations 
E) air pollution 
A) loud rap music at 2 a.m.in the apartment next door to you 
B) traffic congestion 
C) an Alaskan oil spill 
D) measles vaccinations 
E) air pollution

Question 2

Society's total cost of producing a good

Accepted Answer

A) includes only the cost to the firm 
B) includes only the external cost 
C) includes all private and external costs 
D) equals the value of the output level that maximizes the firm's profit 
E) equals the value of the output level that minimizes the firm's loss 
A) includes only the cost to the firm 
B) includes only the external cost 
C) includes all private and external costs 
D) equals the value of the output level that maximizes the firm's profit 
E) equals the value of the output level that minimizes the firm's loss

Question 3

Exhibit 17-2   In Exhibit 17-2, the socially efficient price and level of output are

Accepted Answer

A) $6 and 50 units, respectively 
B) $12 and 50 units, respectively 
C) $12 and 40 units, respectively 
D) $6 and 40 units, respectively 
E) not indicated 
A) $6 and 50 units, respectively 
B) $12 and 50 units, respectively 
C) $12 and 40 units, respectively 
D) $6 and 40 units, respectively 
E) not indicated

Which of the following would not be considered a negative externality?

Society's total cost of producing a good

Exhibit 17-2 In Exhibit 17-2, the socially efficient price and level of output are

The Art and Science of Economic Analysis

Appendix--Understanding Graphs

Economic Tools and Economics Systems

Economic Decision Makers

Demand, Supply, and Markets

Elasticity of Demand and Supply

Appendix--Price Elasticity and Tax Incidence

Consumer Choice and Demand

Appendix--Indifference Curves and Utility Maximization

Production and Cost in the Firm

A--Perfect Competition

B--Perfect Competition

A--Monopoly

B--Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, Interest, and Corporate Finance

Transaction Costs, Imperfect Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Income Distribution and Poverty

International Trade

International Finance

Economic Development

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Exam 17: Externalities and the Environment

Which of the following would not be considered a negative externality?

Society's total cost of producing a good

Exhibit 17-2 In Exhibit 17-2, the socially efficient price and level of output are

The Art and Science of Economic Analysis

Appendix--Understanding Graphs

Economic Tools and Economics Systems

Economic Decision Makers

Demand, Supply, and Markets

Elasticity of Demand and Supply

Appendix--Price Elasticity and Tax Incidence

Consumer Choice and Demand

Appendix--Indifference Curves and Utility Maximization

Production and Cost in the Firm

A--Perfect Competition

B--Perfect Competition

A--Monopoly

B--Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, Interest, and Corporate Finance

Transaction Costs, Imperfect Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Income Distribution and Poverty

International Trade

International Finance

Economic Development

Filters