Exam 10: Externalities

-The figure above shows the market for polio vaccination in Pakistan.Polio vaccination confers an external benefit because one person's vaccination makes it less likely that other people will catch polio. a.If the market is competitive and left unregulated,how many doses of vaccine will be administered? b.If the Melinda and Bill Gates Foundation underwrites the cost of the vaccine by paying for a large fraction of the preparation and delivery cost,what will happen to the number of doses administered? Why?

What are marketable permits? Suppose there are two firms in an area,each emitting tons of sulfur.The government decides on a target level of 200 tons of sulfur,and gives each firm a permit to emit 100 tons of sulfur.Suppose Firm A is very efficient and can reduce pollution by 100 tons with an abatement cost of $500.Firm B has an older plant,so it will cost Firm B $1,000 to reduce emissions by 100 tons.What will occur with marketable permits?

If an external benefit is present,then the

-The figure above shows the market for the chemical hydrogen sulfide,the production of which creates an external cost.The government imposes the pollution tax shown in the figure.How much tax revenue does the government collect?

Which of the following is a common method used by government to cope with the situation in which production of a good creates an external cost?

-The figure above shows the market for college education in the United States.The efficient quantity of college education is ________ students per year.

-The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered.At 10 concerts,the

-The figure above shows the marginal social cost of generating electricity and the marginal private cost.For 4 billion kilowatts,what is the marginal external cost?

The figure above shows the demand for college education (D), the marginal social benefit of college education (MSB), and the marginal cost of the private schools (MC). -In the figure above,suppose the government provides vouchers worth $15,000 per student per year.Then the market equilibrium occurs at a tuition of ________ a year and ________ million students.

An example of someone bearing the burden of a negative production externality would be

The cost of producing an additional unit of a good or service that is borne by the producer of that good or service

-The figure shows the market for college education.The efficient number of students is

When Ronald takes another economics class,other people in society benefit.The benefit to these other people is called the marginal ________ benefit of the class.

The basic reason that a competitive unregulated market produces an inefficient amount of a good with an external cost is because

-The figure above shows the market for college education.Left to itself without any government intervention,a competitive market would create a deadweight loss equal to

-The figure above shows the market for private elementary school education in Chicago.There is no external cost of private elementary education.If the government does not intervene in this market,the equilibrium number of students being privately educated is ________ and the efficient quantity is ________.

The deadweight loss associated with producing a product that has an external cost occurs because

-The above figure shows the market for college education in the United States.With no government intervention,the market equilibrium is at a tuition of ________ and ________ million students per year.

Which of the following is an example of an activity that creates an external cost? i.a smoker emitting second-hand smoke ii.sulfur emitting from a smoke stack iii.throwing garbage on the roadside

To ensure all students are protected from getting the flu this year,your school offers free flu shots.What type of externality exists in this example?