Question 1

-The figure above shows the market for annual influenza immunizations the United States. Area B is the

Accepted Answer

A) gain in efficiency from the illustrated subsidy. 
B) remaining deadweight loss when there is the illustrated subsidy. 
C) deadweight loss when there is not the illustrated subsidy. 
D) equilibrium with the illustrated subsidy. 
E) loss in efficiency from the illustrated subsidy. 
A) gain in efficiency from the illustrated subsidy. 
B) remaining deadweight loss when there is the illustrated subsidy. 
C) deadweight loss when there is not the illustrated subsidy. 
D) equilibrium with the illustrated subsidy. 
E) loss in efficiency from the illustrated subsidy.

Question 2

-The above figure shows the market for college education in the United States. With no government intervention, the unregulated market equilibrium is ________ because education generates ________.

Accepted Answer

A) efficient; positive external benefits 
B) inefficient; positive external benefits 
C) inefficient; positive external costs 
D) efficient; positive external costs 
E) inefficient; public goods 
A) efficient; positive external benefits 
B) inefficient; positive external benefits 
C) inefficient; positive external costs 
D) efficient; positive external costs 
E) inefficient; public goods

Question 3

A firm dumps dioxin in a river, thereby severely polluting the river. The cost of the water pollution is i. zero for the firm.
Ii. an external cost.
Iii. part of the marginal social cost

Accepted Answer

A) i only 
B) ii only 
C) iii only 
D) ii and iii 
E) i, ii, and iii 
A) i only 
B) ii only 
C) iii only 
D) ii and iii 
E) i, ii, and iii

Question 4

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

Accepted Answer

A) too much output is produced. 
B) too little output is produced. 
C) the price firms charge for the good is too high. 
D) not enough resources are allocated to producing the good. 
E) the marginal social cost does not equal zero. 
A) too much output is produced. 
B) too little output is produced. 
C) the price firms charge for the good is too high. 
D) not enough resources are allocated to producing the good. 
E) the marginal social cost does not equal zero.

Question 5

-The figure above shows the market for annual influenza immunizations the United States. The market equilibrium with no government intervention is ________ because health care generates ________.

Accepted Answer

A) efficient; positive external benefits 
B) inefficient; positive external benefits 
C) inefficient; positive external costs 
D) efficient; positive external costs 
E) inefficient; public goods 
A) efficient; positive external benefits 
B) inefficient; positive external benefits 
C) inefficient; positive external costs 
D) efficient; positive external costs 
E) inefficient; public goods

Question 6

Does the existence of the University of Oklahoma affect citizens who do not attend the University?

Accepted Answer

Education creates an external benefit. H

Question 7

A noisy party that keeps neighbors awake is an example of a

Accepted Answer

A) negative production externality. 
B) positive production externality. 
C) negative consumption externality. 
D) positive consumption externality. 
E) Both answers B and C are correct. 
A) negative production externality. 
B) positive production externality. 
C) negative consumption externality. 
D) positive consumption externality. 
E) Both answers B and C are correct.

Question 8

In a market with an external cost, government action

Accepted Answer

A) cannot decrease the amount of the deadweight loss from the external cost. 
B) can sometimes help to achieve an efficient outcome. 
C) cannot alter firms' cost curves. 
D) Both answers A and C are correct. 
E) Both answers B and C are correct. 
A) cannot decrease the amount of the deadweight loss from the external cost. 
B) can sometimes help to achieve an efficient outcome. 
C) cannot alter firms' cost curves. 
D) Both answers A and C are correct. 
E) Both answers B and C are correct.

Question 9

-The figure above shows an education market in which the government is providing households with vouchers. In total, how much do the schools receive for a student?

Accepted Answer

A) $4,000 
B) $8,000 
C) $12,000 
D) $16,000 
E) $20,000 
A) $4,000 
B) $8,000 
C) $12,000 
D) $16,000 
E) $20,000

Question 10

If the production of a good creates an external cost, is the supply curve the same as the marginal social cost or the same as the marginal private cost curve or both?

Accepted Answer

The supply curve is always the same as t

Question 11

The additional benefit that Marvin gets from being vaccinated against the flu is known as the

Accepted Answer

A) external benefit. 
B) marginal private benefit. 
C) private cost. 
D) social cost. 
E) marginal social benefit. 
A) external benefit. 
B) marginal private benefit. 
C) private cost. 
D) social cost. 
E) marginal social benefit.

Question 12

-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.

Accepted Answer

A) 16,000; 14 
B) $20,000; 10 
C) $13,000; 10 
D) $13,000; 17 
E) $16,000; 10 
A) 16,000; 14 
B) $20,000; 10 
C) $13,000; 10 
D) $13,000; 17 
E) $16,000; 10

Question 13

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

Accepted Answer

A) i only 
B) i and ii 
C) iii only 
D) ii and iii 
E) i, ii, and iii 
A) i only 
B) i and ii 
C) iii only 
D) ii and iii 
E) i, ii, and iii

Question 14

Some policymakers have proposed giving parents of children in poorly performing schools tax dollars to help send their children to private schools. This proposal is an example of

Accepted Answer

A) vouchers. 
B) public provision. 
C) external costs. 
D) taxes. 
E) correcting an externality using a government good. 
A) vouchers. 
B) public provision. 
C) external costs. 
D) taxes. 
E) correcting an externality using a government good.

Question 15

Describe some of the external benefits associated with education. What can government do to encourage production of the efficient amount of education?

Accepted Answer

External benefits to education include t

Question 16

-The figure above shows the market for college education in the United States. If the government does not intervene in this market, the deadweight loss equals ________ per year.

Accepted Answer

A) $28 billion 
B) $14 billion 
C) $280 billion 
D) $224 billion 
E) $7 billion 
A) $28 billion 
B) $14 billion 
C) $280 billion 
D) $224 billion 
E) $7 billion

Question 17

"According to the Coase theorem, if Gabriel wants the local television station to cease having helicopters fly over his house at night, he will be more likely to be able to reach an agreement with the station if the property right to the airspace is clearly defined and the transaction costs of negotiating are high." Is this statement true or false?
 Explain your answer.

Accepted Answer

The statement is false. The first part o

Question 18

-The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost borne by producers when 200 billion kilowatt hours are produced is

Accepted Answer

A) 0¢ per kilowatt. 
B) 10¢ per kilowatt. 
C) 20¢ per kilowatt. 
D) 15¢ per kilowatt. 
E) 5¢ per kilowatt. 
A) 0¢ per kilowatt. 
B) 10¢ per kilowatt. 
C) 20¢ per kilowatt. 
D) 15¢ per kilowatt. 
E) 5¢ per kilowatt.

Question 19

If the government taxes producers that create pollution, the government's policy

Accepted Answer

A) allows the producers to pollute more by increasing their costs. 
B) results in less production because the producers' costs have risen. 
C) eliminates pollution entirely by shifting the supply curve leftward. 
D) allows the firms to pass along higher costs but doesn't cut pollution. 
E) forbids the firms from passing along higher costs. 
A) allows the producers to pollute more by increasing their costs. 
B) results in less production because the producers' costs have risen. 
C) eliminates pollution entirely by shifting the supply curve leftward. 
D) allows the firms to pass along higher costs but doesn't cut pollution. 
E) forbids the firms from passing along higher costs.

Question 20

-The figure above shows an education market in which the government is providing households with vouchers. Excluding the voucher, what do the students pay the schools?

Accepted Answer

A) $4,000 
B) $8,000 
C) $12,000 
D) $16,000 
E) $0 
A) $4,000 
B) $8,000 
C) $12,000 
D) $16,000 
E) $0

-The figure above shows the market for annual influenza immunizations the United States. Area B is the

-The above figure shows the market for college education in the United States. With no government intervention, the unregulated market equilibrium is because education generates .

A firm dumps dioxin in a river, thereby severely polluting the river. The cost of the water pollution is i. zero for the firm. Ii. an external cost. Iii. part of the marginal social cost

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

-The figure above shows the market for annual influenza immunizations the United States. The market equilibrium with no government intervention is because health care generates .

Does the existence of the University of Oklahoma affect citizens who do not attend the University?

A noisy party that keeps neighbors awake is an example of a

In a market with an external cost, government action

-The figure above shows an education market in which the government is providing households with vouchers. In total, how much do the schools receive for a student?

If the production of a good creates an external cost, is the supply curve the same as the marginal social cost or the same as the marginal private cost curve or both?

The additional benefit that Marvin gets from being vaccinated against the flu is known as the

-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

Some policymakers have proposed giving parents of children in poorly performing schools tax dollars to help send their children to private schools. This proposal is an example of

Describe some of the external benefits associated with education. What can government do to encourage production of the efficient amount of education?

-The figure above shows the market for college education in the United States. If the government does not intervene in this market, the deadweight loss equals ________ per year.

-The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost borne by producers when 200 billion kilowatt hours are produced is

If the government taxes producers that create pollution, the government's policy

-The figure above shows an education market in which the government is providing households with vouchers. Excluding the voucher, what do the students pay the schools?

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

Exam 9: Externalities: Pollution, Education, and Health Care

-The figure above shows the market for annual influenza immunizations the United States. Area B is the

-The above figure shows the market for college education in the United States. With no government intervention, the unregulated market equilibrium is ________ because education generates ________.

A firm dumps dioxin in a river, thereby severely polluting the river. The cost of the water pollution is i. zero for the firm. Ii. an external cost. Iii. part of the marginal social cost

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

-The figure above shows the market for annual influenza immunizations the United States. The market equilibrium with no government intervention is ________ because health care generates ________.

Does the existence of the University of Oklahoma affect citizens who do not attend the University?

A noisy party that keeps neighbors awake is an example of a

In a market with an external cost, government action

-The figure above shows an education market in which the government is providing households with vouchers. In total, how much do the schools receive for a student?

If the production of a good creates an external cost, is the supply curve the same as the marginal social cost or the same as the marginal private cost curve or both?

The additional benefit that Marvin gets from being vaccinated against the flu is known as the

-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

Some policymakers have proposed giving parents of children in poorly performing schools tax dollars to help send their children to private schools. This proposal is an example of

Describe some of the external benefits associated with education. What can government do to encourage production of the efficient amount of education?

-The figure above shows the market for college education in the United States. If the government does not intervene in this market, the deadweight loss equals ________ per year.

-The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal cost borne by producers when 200 billion kilowatt hours are produced is

If the government taxes producers that create pollution, the government's policy

-The figure above shows an education market in which the government is providing households with vouchers. Excluding the voucher, what do the students pay the schools?

Getting Started

The Us and Global Economies

The Economic Problem

Demand and Supply

Elasticities of Demand and Supply

Efficiency and Fairness of Markets

Government Actions in Markets

Global Markets in Action

Production and Cost

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Gdp: a Measure of Total Production and Income

Jobs and Unemployment

The Cpi and the Cost of Living

Potential Gdp and Economic Growth

Money and the Monetary System

Aggregate Supply and Aggregate Demand

Fiscal Policy and Monetary Policy

Filters

-The above figure shows the market for college education in the United States. With no government intervention, the unregulated market equilibrium is because education generates .

-The figure above shows the market for annual influenza immunizations the United States. The market equilibrium with no government intervention is because health care generates .

-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.