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

-The figure above shows the marginal social cost curve of generating electricity,the marginal private cost curve,and the demand curve.If the market is competitive and unregulated,the equilibrium quantity is ________ billion kilowatt hours per day and the efficient quantity is ________ billion kilowatt hours per day

Cost effective technologies to reduce pollution are most likely to result from

-The figure above shows the market for college education in the United States.If the government provides a subsidy to colleges to enroll the efficient number of students,the amount of the subsidy per student equals ________ and each student pays ________ per year.

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

In an unregulated market with an external benefit,the

Suppose Julie plants a beautiful garden in her front yard.The benefits of the garden to Julie and to her neighbors equals the

-The figure above shows the market for college education.The efficient quantity of education is

Based on the figure above,when the market is unregulated and is in equilibrium,the deadweight loss is

A landfill site produces an obnoxious odor.Homes downwind of the site rent for $1000 per month while homes upwind of the site rent for $1500 per month.If the odor is the only detectable difference between two neighborhoods,the difference in the rent is the ________ of the odor.

In the figure above,if a pollution tax is imposed that is equal to the marginal external cost of pollution,then at the equilibrium,marginal social cost would ________ marginal benefit,and the quantity of chemical produced would be ________.

-The table above shows information about the costs and benefits of a steel smelter that pollutes the air of a city.The market is efficient when the quantity of steel produced is ________ tons per week.

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

-Use the figure above to answer this question.Explain what the marginal social cost curve and the marginal external cost mean.In the figure,if the market is competitive and unregulated,what is the equilibrium price and quantity? What is the efficient amount of output? Illustrate the deadweight loss.

Pollution is an example of a ________ externality.

Which of the following is an example of an external cost?

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

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

-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.

If the marginal external cost of building a children's playground equals zero,then the I.marginal private cost equals the marginal social cost. Ii.marginal social cost equals zero. Iii.marginal private cost equals zero.

-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 ________.