Multiple Choice
A rain barrel is a container that captures and stores rainwater for landscape and garden use during dry periods. As a result, rain barrels benefit the community through water conservation. If homeowners do not consider this external benefit of rain barrels, then
A) the socially optimal quantity of rain barrels will be larger than the equilibrium quantity of rain barrels.
B) the socially optimal quantity of rain barrels will be smaller than the equilibrium quantity of rain barrels.
C) the socially optimal price of rain barrels will be lower than the equilibrium price of rain barrels.
D) the market for rain barrels would benefit from a tax on rain barrels.
Correct Answer:

Verified
Correct Answer:
Verified
Q167: Scenario 10-4<br>The demand curve for fire extinguishers
Q394: Scenario 10-1<br>The demand curve for gasoline slopes
Q395: Since externalities tend to keep markets from
Q396: What economic argument suggests that if transactions
Q397: The goal of industrial policy should be
Q398: Figure 10-11 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 10-11
Q400: Suppose that electricity producers create a negative
Q402: Figure 10-10 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1273/.jpg" alt="Figure 10-10
Q403: Thurman is a writer who works from
Q404: Which of the following statements is true