Multiple Choice
Scenario: Vacant houses, foreclosed or abandoned, are typically boarded up with plywood that many people consider unsightly and likely to invite vandalism. An alternative is clear plastic (polycarbonate) panels. The figure below shows the demand and the supply of polycarbonate panels used for boarding up houses in a hypothetical town. To answer some of the questions below, it will be useful to find the equations of the three lines in the figure.
-Refer to the scenario above.Use of polycarbonate panels to board up vacant houses has a ________.
A) negative externality
B) positive externality
C) gain in producer surplus
D) gain in consumer surplus
Correct Answer:

Verified
Correct Answer:
Verified
Q37: Scenario: The following figure shows the private
Q38: A _ externality occurs when a market
Q39: Which of the following will lead to
Q40: Externalities essentially create _.<br>A) non-excludability in consumption<br>B)
Q41: Scenario: Ron plays loud music, which prevents
Q43: Scenario: Jim and Jane are the only
Q44: Four friends decide to have a party
Q45: Your roommate claims we can understand the
Q46: Which of the following is necessary for
Q47: Which of the following goods is rival