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

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 the unregulated market equilibrium occurs at a tuition of ________ a year and ________ million students.

Which of the following actions would most likely have an external benefit?

In an unregulated market with an external benefit, the

-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

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). -Using the figure above, suppose education is provided by public colleges, where tuition is set at $10,000 a year. When the market is in equilibrium, the marginal social benefit is ________, the marginal cost is ________, and the number of students enrolled is ________.

The cost of producing an additional unit of a good or service that falls on people other than the producer is

-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 100 billion kilowatt hours are produced is

The marginal cost of production that is borne by the entire society is called the marginal

-The figure above shows the marginal social cost curve of generating electricity and the marginal private cost curve. The marginal external cost when 100 billion kilowatt hours are produced is

Education leads to external benefits because

How has air quality changed in the United States since 1980?

-The figure above shows the market for annual influenza immunizations the United States. The marginal external benefit associated with immunizing 14 million people is ________ per person per year.

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

Explain the process by which a private subsidy corrects an external benefit.

What do we mean by "property rights" and why are they important?

One reason why property rights help achieve an efficient level of pollution is because property rights

For a good whose production creates an external cost, the efficient quantity of output is

If the government provides a subsidy to producers, what is the effect of this policy in a supply and demand diagram?

Pell grants are money given to students attending college. Pell grants are most closely similar to

An externality can be a cost or benefit arising from the production of a good that falls upon