Exam 10: Externalities

-The figure above represents the relationship between output and cost in an industry with an external cost.When output is at D,what distance represents the marginal external cost?

Marginal social cost is equal to

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

-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 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.

An example of someone bearing the burden of a negative production externality would be

Which of the following best describes an externality?

-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 200 billion kilowatt hours are produced is

-The figure above shows the market for education.Education has an external benefit. a.If the market is competitive and left unregulated,how many students will be enrolled per yea b.What is the efficient number of student c.In the figure,show the effect of a government subsidy that moves the market to the efficient number of students.What is the amount of the subsidy and what tuition must the students pa

Which of the following is an example of a voucher?

If the government taxes producers that create pollution,the government's policy

Which of the following is an example of an activity that creates an external cost? i.a smoker emitting second-hand smoke ii.sulfur emitting from a smoke stack iii.throwing garbage on the roadside

Jacob pays $5,000 to paint his house because pollution from a nearby factory damaged the paint.To the factory,the $5,000 cost is

Which of the following equations is correct?

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

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.

If a producer must pay the cost of his or her pollution because property rights have been assigned,then

If the marginal social cost of a good is $70 and the marginal external cost is $20,what does the marginal private cost equal?

The cost of producing an additional unit of a good or service that is borne by the producer of that good or service