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

-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.It also illustrates the marginal private benefit.There is no external benefit.The efficient number of concerts in Seattle is

-The figure above shows the market for annual influenza immunizations the United States.If the government intervenes in the market and provides a $10 subsidy to providers of immunizations,the number of people immunized is ________.

The benefit the consumer of a good or service receives is the

When people decide whether or not to get a flu vaccination,they ignore the ________ and as a result ________.

-The figure above shows the marginal social cost of generating electricity and the marginal private cost.For 4 billion kilowatts,what is the marginal external cost?

"External benefits lead to overproduction so that more than the efficient quantity is produced." Is the previous statement true or false?

If a good has an external cost,then the marginal private cost curve

A subsidy is

The government can overcome the inefficiency created by a good with an external benefit by using

Harry,the owner of a beauty salon,hires a new hair stylist.The wages paid to the new stylist are

In the figure above,if a pollution tax is imposed that is equal to the marginal external cost of pollution,then when the market is in equilibrium,the deadweight loss is ________ thousand per month.

-The figure above shows the market for annual influenza immunizations the United States.Area A + Area B is the

A private subsidy has what effect on the amount of a good or service produced? Is a subsidy an appropriate policy to offset the inefficiency from an external cost or an external benefit?

"According to the Coase theorem,if Gabriel wants the local television station to cease having helicopters fly over his house at night,he will be more likely to be able to reach an agreement with the station if the property right to the airspace is clearly defined and the transaction costs of negotiating are high." Is this statement true or false? Explain your answer.

The production of electricity creates pollution.When deciding how much electricity to buy,customers ________ the cost of pollution.When deciding how much electricity to buy,producers ________ the cost of pollution.

-The figure above illustrates the gasoline market.There is no external benefit from gasoline.If this market is left unregulated and no pollution tax is imposed,the equilibrium quantity of gasoline is

-The figure above shows the market for college education in the United States.If the government has a goal of enrolling the efficient number of students each year,the government should provide a voucher to students equaling ________.

-The above figure shows the market for college education in the United States.With no government intervention,the unregulated market equilibrium is ________ because education generates ________.

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.

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