Exam 15: Externalities

Use the figure below to answer the following questions. Figure 15.3.2 -Refer to Figure 15.3.2.The figure shows the market for good B.Under public production,consumers pay ________ for each unit of B.

Use the figure below to answer the following questions. Figure 15.2.1 -Refer to Figure 15.2.1.The figure shows the marginal private cost curve,the marginal social cost curve and the market demand curve of a mining firm.To promote an efficient allocation of resources,the government could impose a constant per unit tax equal to

Use the table below to answer the following questions. Table 15.2.2 Chemical Fertilizer Market -Refer to Table 15.2.2.The Pigovian tax that achieves the efficient quantity of fertilizer is

Use the figure below to answer the following questions. Figure 15.3.1 -Refer to Figure 15.3.1.The figure shows the marginal private benefit curve,the marginal social benefit curve,and the market supply curve.To promote an efficient quantity the government could grant a subsidy equal to

A person driving while talking on a smartphone creates a negative ________ externality.A beautiful sunset creates ________ externality.

The marginal private benefit curve (MB)is a negatively-sloped straight line.If marginal external benefit decreases as output increases,the marginal social benefit curve is a negatively-sloped straight line

The outcome from a voucher scheme is efficient when the government makes the value of the voucher equal to

In the absence of government intervention,a profit-maximizing firm producing a good with an external cost will produce a quantity at which

A voucher can eliminate the deadweight loss and lead to an efficient outcome if the value of the voucher equals the ________ of the good.

If the marginal private cost of producing one kilowatt of power in British Columbia equals five cents and the marginal social cost of each kilowatt equals nine cents,then the marginal external cost equals ________ per kilowatt.

Use the figure below to answer the following questions. Figure 15.2.3 -Refer to Figure 15.2.3.The unregulated equilibrium in the paper market is

Pollution occurs when lumber is produced.If the lumber market is unregulated,there would be

Use the figure below to answer the following questions. Figure 15.2.1 -Refer to Figure 15.2.1.The figure shows the marginal private cost curve,the marginal social cost curve and the market demand curve of a mining firm.If the market is unregulated,then

A homeowner planting an attractive garden in front of his house creates ________. A bakery baking bread creates ________.

Use the figure below to answer the following questions. Figure 15.3.1 -Refer to Figure 15.3.1.The figure shows the marginal private benefit curve,the marginal social benefit curve,and the market supply curve.If a voucher is given to consumers that generates an efficient outcome,then producers receive a price of

Use the figure below to answer the following questions. Figure 15.3.2 -Refer to Figure 15.3.2.The figure shows the market for good B.Which of the following government policies creates an efficient outcome?

If negative externalities exist,then in a market with no property rights,

Most governments subsidize basic education because

Research and development ________ create an external benefit.With no intervention,we produce too ________ research and development.

Post-secondary education in Canada is subsidized.This fact suggests that i.less than the efficient amount of education would be provided by an unregulated market. Ii.the marginal private benefit from education equals the marginal social benefit from education. Iii.post-secondary education has no externalities. Which statements are correct?