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

-The figure above shows the market for a good with an external benefit. The efficient level of production is ________ units because ________.

If the marginal social cost of generating a kilowatt of electricity is $0.10 and the marginal private cost is $0.08, what is the marginal external cost?

A loud band plays a concert late at night in a neighborhood park. The noise produced by the band that keeps the neighbors not attending the concert awake is

In the figure above, when the market is unregulated and in equilibrium, marginal social cost ________ marginal benefit, and the quantity of chemical produced is ________.

-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. If 5 concerts are put on, then the

Vouchers given to consumers

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). -The figure above shows that at the unregulated market equilibrium, marginal social benefit ________ marginal cost, and the number of students enrolled is ________.

Why does government provide educational opportunities in the form of vouchers, private subsidies, and public provision?

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

Which of the following is true? I. In an unregulated market with an external benefit, consumers don't take it into account and consume less than the efficient quantity. Ii. Marginal social cost equals marginal private cost minus marginal external cost. Iii. An unregulated market produces more than the efficient quantity of a good with an external cost.

-The figure above shows the costs and benefits associated with producing paper. What is the unregulated competitive market level of output?

For a firm, its labor costs are

-The figure above shows the marginal social cost curve of generating electricity, the marginal private cost curve, and the demand curve. The marginal external cost of producing 200 billion kilowatt hours per day is ________ per kilowatt.

-The figure above shows the market for college education in the United States. If there is no external benefit from a college education and the government does not intervene in the market, then the equilibrium tuition of college education is

Marginal social cost is the

-The figure above represents the relationship between output and cost in an industry with an external cost. When output is at D, what distance represents the marginal external cost?

The Coase theorem is the proposition that if property rights exist and are enforced, private transactions are

-The figure above shows the market for private elementary school education in Chicago. There is no external cost of private elementary education. If the marginal social benefit of private elementary education equaled the marginal social cost, the deadweight loss in Chicago's private education market would equal

If tuition at a college is $30,000 and the external benefit of graduating from this college is $10,000, then i. in the absence of any government intervention, the number of students graduating is less than the efficient number. Ii. the government could increase the number of graduates by giving the college a $10,000 subsidy per student. Iii. the government could increase the number of graduates by giving the students $10,000 vouchers.

-The figure above shows the market for education, a good possessing an external benefit. In order to attain the efficient number of students, a government subsidy must equal ________ per student.