Exam 17: Externalities and the Environment

When competitive market equilibrium determines a level of output for which the marginal social cost exceeds the marginal social benefit,the private equilibrium results in

Puerta Vallarta International Airport is near the coast.At night planes take off and land from the west,over the water.During the day planes approach and leave from the east,over Puerta Vallarta neighborhoods.Night flights into and out of Puerta Vallarta are more dangerous than day flights.Which rights are in conflict in this situation?

If farmers decide individually whether or not to vaccinate their cattle against mad cow disease,which of the following is true?

In the village of Axiok,any farmer can allow its cattle to graze on the common grassland.Which of the following statements is incorrect?

A tannery discovers a technology that makes it cheaper to reduce the air pollution it generates in making paper.On a graph of the optimal level of air quality,the use of the new technology would be represented by

A pollution tax

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