Exam 19: Externalities and the Environment

Exhibit 17-3 -In Exhibit 17-3,the welfare loss (from society's perspective)that results from 70 units of air quality is shown by area

According to the Coase theorem,if bargaining costs are small,then there will be an efficient solution to the problem of toxic waste

A meditation class meets on the second floor of a building; the first floor is a nightclub.The loud music from the club disturbs the classes.The club could be soundproofed for a cost of $5,000 or move at a cost of $8,000.The class can't soundproof enough to overcome the music,but could be moved for $4,000.According to Coase,

When consumption of a good or service produces benefits or costs that are not reflected in the market price for the good,this is known as a(n)

Based on 2005 data what country is the worlds leading recycler?

The equilibrium price and quantity in a free market usually reflect private marginal costs and benefits,not social ones.

In the absence of government intervention,the marginal social cost of pollution abatement would equal its marginal social benefit.

Most water pollution in the United States comes from manufacturing sites.

The socially optimal level of output of a good with an externality occurs when

Government restrictions on the use of an open-access resource

In the U.S.,people tend to discard items rather than repair them because

Exhibit 17-2 -In Exhibit 17-2,the total social gain from producing the socially efficient output rather than the private equilibrium output is

Control of water pollution from pesticide runoff in the United States is the responsibility of

An individual who drives a car without a muffler in an attempt to increase fuel economy is creating

The economic efficiency approach to emission control provides the polluting firm with

Pollution arises because

Some pollution occurs because property rights to some resources are well defined.

Exhibit 17-6 -In Exhibit 17-6,an unregulated market would produce

When consuming a good creates positive externalities,

Exhibit 17-8 -Exhibit 17-8 represents the consumer market for higher education.If people base their education decisions only on the marginal private benefit of education,how many years of education will they get?