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

-The figure above illustrates the gasoline market.There is no external benefit from gasoline.If a tax on gasoline is imposed as shown in the figure,then the total tax revenue earned by the government equals

-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 price of private education is

Which of the following government actions is appropriate in a market with an external benefit?

If the marginal social cost of producing a ton of cement is $4,000 and the marginal private cost is $3,500,then the

For a product with an external cost,the supply curve

Explain the difference between a negative production externality and a negative consumption externality.

-The figure above shows an education market in which the government is providing households with vouchers.What is the efficient quantity of students?

Which of the following is NOT an example of a good with an external cost?

Firm A and Firm B emit 300 tons of pollution each and each have marketable permits that allow each to emit 100 tons of pollution.If it costs $5,000 for Firm A to eliminate 100 tons of pollution and it costs Firm B $6,000 to eliminate 100 tons of pollution,then

To ensure all students are protected from getting the flu this year,your school offers free flu shots.What type of externality exists in this example?

If all education in the United States were provided by private,tuition-charging schools,

Education has an external benefit.So to achieve the efficient level of education,an education voucher must equal the difference between the

Marginal private cost

What is marginal external cost? Give an example.

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

Explain the difference between a positive production externality and a positive consumption externality.

-The figure shows the market for college education.In order for the efficient amount of education to occur,the government could provide a subsidy of ________ per student.

If a product has an external benefit,how does its marginal private benefit compare to its marginal social benefit?

When the benefits of producing a good or service spill over to other people,rather than just the buyer,the spillover is referred to as

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 ________.