Exam 8: Externalities, the Environment, and Public Goods

The _____ are rules to protect the environment through government regulations.

(Figure: Externalities A) In this figure, the distance between which two points represent the value of a positive externality?

_____ allow firms the right to pollute for a strictly limited amount and type of pollution.

(Figure: Externality Table I) The table shows the information for a public good being provided to two citizens. Based on the table, what is the equilibrium quantity? Q Ann's MPB Ben's MPB MSC 1 \ 10 \ 12 1 2 8 9 3 3 6 6 5 4 4 3 7 5 2 0 9 6 0 0 11 7 0 0 13

Which of the following is an example of a nonrival private good?

(Figure: Common Resource Goods) This figure illustrates the tragedy of the commons. Explain the figure in terms of marginal private cost and social and private equilibrium.

The Coase theorem claims that many instances of externality problems can be solved by:

_____ is a method used by the government to determine if a public good should be provided.

_____ costs are marginal costs that are borne by sellers plus additional external costs.

A _____ occurs when someone who is not involved in a transaction is harmed by it.

A positive externality exists, which leads the government to issue a corrective subsidy. It is attempting to:

(Figure: Externality Table 0) The table shows the information for a public good being provided to two citizens. Based on the table, what is the equilibrium quantity? Q Ann's MPB Ben's MPB MSC 1 \ 10 \ 12 22 2 8 9 24 3 6 6 26 4 4 3 28 5 2 0 30 6 0 0 32 7 0 0 34

Due to _____, firms that are committed to environmental sustainability might find it difficult to compete with firms that ignore environmental problems.

(Figure: Common Resource Goods 2) In this figure, which point depicts private equilibrium?

Recently, Delta Airlines announced an initiative to help stabilize the honey bee population, which has been declining. This is an example of:

_____ costs are marginal costs that are borne by sellers.

_____ good is one that can be used or consumed by only one consumer.

When a paper mill pollutes the air as a result of its production process, the firm must pay a fine. This is an example of:

Which of the following enables firms to commit more easily to environmental sustainability?

(Figure: Externalities I) In this figure, which point includes a negative externality?