Exam 17: Externalities

-In the above figure, if the market is competitive and unregulated, the price will be

-In the figure above showing the costs and benefits of paper production, there is an

-The figure above shows the market for transportation services, which produces an external cost due to the air pollution that is created. The efficient quantity of transportation services is ________ and the corresponding price is ________.

If an activity has an external benefit, such as education, a tax on that activity can lead to the efficient level of output being produced.

A private cost is a cost of production that is

For a good whose production creates a pollution, when marginal social cost equals marginal social benefit, then I there is no pollution. II resources are utilized efficiently.

If there are externalities present in a market, resources are allocated efficiently when marginal social cost equals marginal social benefit.

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

In an unregulated, competitive market, less than the efficient quantity of education is produced and consumed because

-The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. What is the efficient quantity of steel?

Any such pollution is

-The figure above provides information for a factory that produces chemicals that pollute a waterway. The waterway is used by water skiers. If the waterway is owned by the factory and the Coase theorem applies, then the factory will produce ________ tons of chemicals a week.

The figure shows the supply curve (S) and the demand curve (D) for college education. The external benefit from college education is $6,000 per student per year and is constant. -In the figure above, if the government provides the efficient amount of education, what is the tuition?

To achieve the efficient amount of use of a common resource, the use should be such that ________ equals ________.

-Based on the data in the above table, to assure that the efficient amount is produced the government can

-The figure above shows the costs associated with producing paper. When paper is produced, there is some pollution runoff into a lake. Without regulation, ________ tons of paper will be produced and the price will be ________ per ton.

-The above figure shows the marginal private benefit and marginal social cost of a college education. If students receive a $10,000 voucher

-The table above shows the marginal costs and marginal benefits of college education. If the market for college education is perfectly competitive and unregulated, at the equilibrium quantity, the marginal external benefit is

A cost that arises from the production of a good that is paid by someone who did not participate in the production is called

-The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, the equilibrium price per ton will be