Question 1

A zero pollution level is NOT achievable because

Accepted Answer

A) corporations would lobby against it. 
B) it implies no production and no consumption. 
C) it implies an output level larger than that from a competitive market equilibrium. 
D) consumption would be larger than production. 
A) corporations would lobby against it. 
B) it implies no production and no consumption. 
C) it implies an output level larger than that from a competitive market equilibrium. 
D) consumption would be larger than production.

Question 2

If the government wanted to efficiently limit the emission of carbon monoxide by all firms to exactly 4 million tons it could

Accepted Answer

A) issue rights to pollute worth 4 million tons and let the firms trade those rights in a market. 
B) appeal to firms' environmental conscience to pollute less. 
C) subsidize production. 
D) rely on the Coase Theorem. 
A) issue rights to pollute worth 4 million tons and let the firms trade those rights in a market. 
B) appeal to firms' environmental conscience to pollute less. 
C) subsidize production. 
D) rely on the Coase Theorem.

Question 3

A student that asks interesting questions during the lecture generates

Accepted Answer

A) positive externalities. 
B) no externalities. 
C) negative externalities. 
D) an excludable good. 
A) positive externalities. 
B) no externalities. 
C) negative externalities. 
D) an excludable good.

A zero pollution level is NOT achievable because

If the government wanted to efficiently limit the emission of carbon monoxide by all firms to exactly 4 million tons it could

A student that asks interesting questions during the lecture generates

Introduction

Supply and Demand

Applying the Supply-And-Demand Model

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Asymmetric Information

Contracts and Moral Hazards

Filters

Exam 18: Externalities, Open-Access, and Public Goods

A zero pollution level is NOT achievable because

If the government wanted to efficiently limit the emission of carbon monoxide by all firms to exactly 4 million tons it could

A student that asks interesting questions during the lecture generates

Introduction

Supply and Demand

Applying the Supply-And-Demand Model

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Competitive Firms and Markets

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Asymmetric Information

Contracts and Moral Hazards

Filters