Exam 10: Externalities

-The figure above shows the market for annual influenza immunizations the United States.If the government does not intervene in this market,the number of immunizations per year is ________ and the efficient number of immunizations per year 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 ________.

An external benefit is a benefit from a good or service that someone other than the ________ receives.

-The figure above shows the market for education,a good possessing an external benefit.In order to attain the efficient number of students,a government subsidy must equal ________ per student.

When government provides a good with an external benefit,to attain efficiency the price paid by consumers is set equal to the

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

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

What is marginal external cost? Give an example.

Why is it not efficient to eliminate all pollution?

-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

An external cost in the production of a good creates a difference between the i.costs borne by the producer and the costs borne by society in general. ii.efficient quantity of output and the equilibrium quantity of output. iii.marginal social cost and the marginal private cost.

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.

When the production of a good has a marginal external cost,which of the following occurs in an unregulated market? i.Overproduction relative to the efficient level will occur. ii.The market price is less than the marginal social cost at the equilibrium quantity. iii.A deadweight loss occurs.

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

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

A carbon tax would ________ the cost of producing goods and services that create large carbon emissions,and would lead Americans to use ________ carbon-intensive goods and services,which could ________ climate change. A) raise; more; slow B) raise; fewer; speed up C) lower; fewer; slow D) raise; fewer; slow E) raise; more; speed up

-The figure above shows the market for a good with an external benefit.The efficient level of production is ________ units because ________.

In a market with an external cost,government action

In order for pollution taxes to be effective in eliminating the deadweight loss resulting from pollution,the pollution tax must be set equal to the

-The figure above illustrates the gasoline market.There is no external benefit from gasoline.If a pollution tax equal to the marginal external cost is imposed on gasoline,then the quantity of gasoline produced and consumed equals