Economics Chapter 16 Reference Ref 169 Table External Question Points

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144. Multiple Choice: With tradable emissions permits, the …

Question With tradable emissions permits, the main problem is to determine the ________, while with emissions

taxes the main problem is to determine the ________.

145. Multiple Choice: Figure: City with Two Polluters Refer…

Question Figure: City with Two Polluters

Reference: Ref 16-8

(Figure: City with Two Polluters) Look at the figure City with Two Polluters. If the government does not

intervene in the pollution market, equilibrium will occur where firm A produces ________ tons of pollution

and firm B produces ________ tons of pollution for a total of ________ tons of pollution.

146. Multiple Choice: Figure: City with Two Polluters Refer…

Question

Points: 0

Figure: City with Two Polluters

Reference: Ref 16-8

(Figure: City with Two Polluters) Look at the figure City with Two Polluters. If the government wants to

limit total pollution to 2,200 tons, it could impose an emissions tax of ________ on both firms.

147. Multiple Choice: Figure: City with Two Polluters Refer…

Question Figure: City with Two Polluters

Reference: Ref 16-8

(Figure: City with Two Polluters) Look at the figure City with Two Polluters. If the government imposed an

emissions tax of $400, firm A would produce ________ tons of emissions and firm B would produce

________ tons of emissions.

Answer 200; 400

Points: 0

148. Multiple Choice: Figure: City with Two Polluters Refer…

Question Figure: City with Two Polluters

Reference: Ref 16-8

(Figure: City with Two Polluters) Look at the figure City with Two Polluters. If the government issued

licenses to pollute a total of 1,600 tons of emissions, the market price to emit 1 ton of emissions would

equal:

Answer $100.

149. Multiple Choice: With use of ________ to reduce emissi...

Question With use of ________ to reduce emissions, the marginal benefit of an additional unit of pollution is the

same for all polluters.

Answer an environmental standard

150. Multiple Choice: An external benefit is a(n):

Question An external benefit is a(n):

Answer example of a negative externality.

Points: 0

151. Multiple Choice: There are external benefits associate…

Question There are external benefits associated with the production of batteries. Without government regulation,

the market will:

Answer produce too many batteries.

152. Multiple Choice: Which of the following is an example ...

Question Which of the following is an example of an activity generating a positive externality?

Answer You buy a new car and then find $5,000 in the door panel.

153. Multiple Choice: Which of the following is an example ...

Question Which of the following is an example of a positive externality?

Answer Sam dug a pond so he could go fishing, but the pond has contributed to an explosion of mosquitoes

in your neighborhood.

154. Multiple Choice: A Pigouvian subsidy is:

Question A Pigouvian subsidy is:

Answer designed to discourage activities generating externalities.

Points: 0

155. Multiple Choice: Suppose the production of roses gener…

Question Suppose the production of roses generates a positive externality in that travelers enjoy the scenic rural

vistas. An appropriate government policy yielding the efficient outcome would be a:

Answer Pigouvian tax.

156. Multiple Choice: When an activity like education gener…

Question When an activity like education generates a positive externality, the:

157. Multiple Choice: Suppose the production of roses gener…

Question Suppose the production of roses generates a positive externality in that travelers enjoy the scenic rural

vistas. Then the market price of roses:

158. Multiple Choice: Suppose the production of roses gener…

Question Suppose the production of roses generates a positive externality in that travelers enjoy the scenic rural

159. Multiple Choice: One of the reasons community colleges…

Question

Points: 0

One of the reasons community colleges receive government subsidies is that it is believed that education

creates ________, and without subsidies the quantity produced would be ________ the socially optimal

quantity.

160. Multiple Choice: If a good produces a positive externa...

Question If a good produces a positive externality and the government does not correct it, the equilibrium market

quantity is ________ than the socially optimal quantity and the equilibrium market price is ________ than

the socially optimal price.

161. Multiple Choice: When a vaccination program generates ...

Question When a vaccination program generates a positive externality, the:

162. Multiple Choice: Betsy loves to garden, and her rose g...

Question Betsy loves to garden, and her rose garden is enjoyed by everyone in her neighborhood. Because her

consumption of rosebushes provides a positive externality to the community, at the market equilibrium

quantity, the marginal social:

163. Multiple Choice: Betsy loves to garden, and her rose g...

Question Betsy loves to garden, and her rose garden is enjoyed by everyone in her neighborhood. Because her

consumption of rosebushes provides a positive externality to the community, the government should:

Answer

Points: 0

164. Multiple Choice: Which of the following is an example ...

Question Which of the following is an example of a government solution to externalities?

165. Multiple Choice: Which of the following is usually ass…

Question Which of the following is usually associated with a positive externality?

166. Multiple Choice: When innovations by one firm are quic…

Question When innovations by one firm are quickly emulated and improved on by rival firms in the same industry or

in other industries, this is:

167. Multiple Choice: Reference: Ref 16-9 (Table: External…

Question

Points: 0

Reference: Ref 16-9

(Table: Externalities from Parks) The table Externalities from Parks shows the marginal social benefit and

the marginal social cost of preserving various amounts of land in a city for a public park. Without

government intervention, the amount of land dedicated to the public park will be _____ acres.

168. Multiple Choice: Reference: Ref 16-9 (Table: External…

Question

Reference: Ref 16-9

(Table: Externalities from Parks) The table Externalities from Parks shows the marginal social benefit and

the marginal social cost of preserving various amounts of land in a city for a public park. Without

government intervention, at the amount of land dedicated to the public park the marginal social benefit will

be:

169. Multiple Choice: Reference: Ref 16-9 (Table: External…

Question

Points: 0

Reference: Ref 16-9

(Table: Externalities from Parks) The table shows the marginal social benefit and the marginal social cost

of preserving various amounts of land in a city for a public park. Without government intervention, at the

amount of land dedicated to the public park the marginal social cost will be:

170. Multiple Choice: Reference: Ref 16-9 (Table: External…

Question

Reference: Ref 16-9

(Table: Externalities from Parks) The table Externalities from Parks shows the marginal social benefit and

the marginal social cost of preserving various amounts of land in a city for a public park. The socially

optimum amount of land dedicated to the public park will be _____ acres.

171. Multiple Choice: Reference: Ref 16-9 (Table: External…

Question

Points: 0

Reference: Ref 16-9

(Table: Externalities from Parks) The table Externalities from Parks shows the marginal social benefit and

the marginal social cost of preserving various amounts of land in a city for a public park. At the socially

optimum amount of land dedicated to the public park the marginal social benefit will be:

172. Multiple Choice: Reference: Ref 16-9 (Table: External…

Question

Reference: Ref 16-9

(Table: Externalities from Parks) The table Externalities from Parks shows the marginal social benefit and

the marginal social cost of preserving various amounts of land in a city for a public park. At the socially

optimum amount of land dedicated to the public park the marginal social cost will be:

173. Multiple Choice: Reference: Ref 16-9 (Table: External…

Question

Points: 0

Reference: Ref 16-9

(Table: Externalities from Parks) The table Externalities from Parks shows the marginal social benefit and

the marginal social cost of preserving various amounts of land in a city for a public park. If the government

wants to achieve the optimum amount of land for the park, it could use a Pigouvian _________ of

_______.

174. Multiple Choice: Reference: Ref 16-9 (Table: External…

Question

Reference: Ref 16-9

(Table: Externalities from Parks) The table Externalities from Parks shows the marginal social benefit and

the marginal social cost of preserving various amounts of land in a city for a public park. If 1 acre is

dedicated to the park, this outcome is _________ because _______.

175. Multiple Choice: Reference: Ref 16-9 (Table: External…

Question

Points: 0

Reference: Ref 16-9

(Table: Externalities from Parks) The table Externalities from Parks shows the marginal social benefit and

the marginal social cost of preserving various amounts of land in a city for a public park. If 1 acre is

dedicated to the park, the park is

176. Multiple Choice: Reference: Ref 16-9 (Table: External…

Question

Reference: Ref 16-9

(Table: Externalities from Parks) The table Externalities from Parks shows the marginal social benefit and

the marginal social cost of preserving various amounts of land in a city for a public park. If 5 acres is

dedicated to the park, this outcome is _________ because _______ .

177. Multiple Choice: Reference: Ref 16-9 (Table: External…

Question

Points: 0

Reference: Ref 16-9

(Table: Externalities from Parks) The table shows the marginal social benefit and the marginal social cost

of preserving various amounts of land in a city for a public park. If 5 acres is dedicated to the park, the

park is:

178. Multiple Choice: Tony has a cell phone, and his cell p...

Question Tony has a cell phone, and his cell phone service provider is Verizon. When he calls his wife, Meleah,

another Verizon customer, he does not have to pay for those minutes. The more Verizon customers there

are in the market, the more benefit Tony receives. This is an example of:

179. Multiple Choice: Figure: The Socially Optimal Quantity…

Question

Points: 0

Figure: The Socially Optimal Quantity of Pollution

Reference: Ref 16-10

(Figure: The Socially Optimal Quantity of Pollution) In the figure The Socially Optimal Quantity of

Pollution, the optimal level of pollution is:

180. Multiple Choice: Figure: The Socially Optimal Quantity…

Question Figure: The Socially Optimal Quantity of Pollution

Reference: Ref 16-10

(Figure: The Socially Optimal Quantity of Pollution) In the figure The Socially Optimal Quantity of

Pollution, without government intervention:

181. Multiple Choice: Figure: The Socially Optimal Quantity…

Question

Points: 0

Figure: The Socially Optimal Quantity of Pollution

Reference: Ref 16-10

(Figure: The Socially Optimal Quantity of Pollution) In the figure The Socially Optimal Quantity of

Pollution, the optimal quantity of pollution:

182. Multiple Choice: Figure: Efficiency and Pollution Refe…

Question Figure: Efficiency and Pollution

Reference: Ref 16-11

(Figure: Efficiency and Pollution) Look at the figure Efficiency and Pollution. In the absence of government

intervention, the amount of pollution will be:

Points: 0

183. Multiple Choice: Figure: Efficiency and Pollution Refe…

Question Figure: Efficiency and Pollution

Reference: Ref 16-11

(Figure: Efficiency and Pollution) Look at the figure Efficiency and Pollution. In the absence of government

intervention, the marginal social cost of pollution will exceed the marginal benefit of pollution by:

184. Multiple Choice: Figure: Efficiency and Pollution Refe…

Question

Points: 0

Figure: Efficiency and Pollution

Reference: Ref 16-11

(Figure: Efficiency and Pollution) Look at the figure Efficiency and Pollution. In the absence of government

intervention, the marginal social cost of pollution will equal ________ while the marginal social benefit of

pollution will equal ________.

185. Multiple Choice: Figure: Efficiency and Pollution Refe…

Question Figure: Efficiency and Pollution

Reference: Ref 16-11

(Figure: Efficiency and Pollution) Look at the figure Efficiency and Pollution. The socially optimal quantity

of pollution is:

Points: 0

186. Multiple Choice: Figure: Efficiency and Pollution Refe…

Question Figure: Efficiency and Pollution

Reference: Ref 16-11

(Figure: Efficiency and Pollution) Look at the figure Efficiency and Pollution. If this market produced

________ tons of pollution, then ________.

187. Multiple Choice: Figure: Efficiency and Pollution Refe…

Question

Points: 0

Figure: Efficiency and Pollution

Reference: Ref 16-11

(Figure: Efficiency and Pollution) Look at the figure Efficiency and Pollution. An optimal Pigouvian tax of

________ can move this market to the socially optimal quantity of pollution.

188. Multiple Choice: Figure: Efficiency and Pollution Refe…

Question Figure: Efficiency and Pollution

Reference: Ref 16-11

(Figure: Efficiency and Pollution) Look at the figure Efficiency and Pollution. A Pigouvian tax of $10 will

result in a quantity of pollution for which the:

Points: 0

189. Multiple Choice: Figure: Efficiency and Pollution Refe…

Question Figure: Efficiency and Pollution

Reference: Ref 16-11

(Figure: Efficiency and Pollution) Look at the figure Efficiency and Pollution. If the government imposed an

environmental standard that did not allow the quantity of pollution to exceed 20 tons, there would be:

190. Multiple Choice: Figure: Efficiency and Pollution Refe…

Question

Points: 0