Question

Choose “True” or “False” for each statement (10 pts) just answer as true or false a)...

Choose “True” or “False” for each statement (10 pts) just answer as true or false

a) True or False: Government intervention is not always necessary to solve negative externalities problems.
b) True or False: If there are negative externalities associated with good X, the price of X that a firm charge will be too high compared with socially optimal level of price.

c) True or False: If emissions are controlled by tradable pollution permits, total abatement costs are minimized.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a) False.

Explanation:

: Government intervention is necessary to help negative externalities.

b) False.

Explanation:

: Social cost will be lower than the private cost because government do not take into account the additional cost of externalities. In this firms may produce more units than than is optimal from a societal standpoint.

c) False.

Eplanation:

: The aim of pollution permits is to provide market incentives for firm to reduce pollution and reduce the external cost associated with it.

: Tradeable pollution permits and emissions trading allows firms to trade the right to emit specific pollutants.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Consider the problem of two polluting sources in the region, each of which generated 10...
1. Consider the problem of two polluting sources in the region, each of which generated 10 units of pollution for a total of 20 units released into the environment. The government determined that emissions must be reduced by 12 units across the region to achieve the ”socially desirable level of pollu- tion”. Each firm faces different abatement cost conditions modelled as follows: for Polluter 1, marginal abatement cost is MAC1 = 26- 2.6E1. For Polluter 2, marginal abatement cost is...
Are the following statements true, false, or uncertain? Please explain. a. Government policies that interfere with...
Are the following statements true, false, or uncertain? Please explain. a. Government policies that interfere with free markets will always be inefficient and therefore decrease society’s net benefits. b. Economic theory predicts that an increase in gas prices will cause people to drive less and therefore spend less on gasoline. c. When government imposes a regulation that restricts pollution to a maximum quantity per firm, the policy results in a higher cost for pollution abatement than is necessary. d. Coasian...
Which of the following statements are true? (Choose "True" or "False" for each statement.) True/False  Electronegativity is...
Which of the following statements are true? (Choose "True" or "False" for each statement.) True/False  Electronegativity is a measure of the relative tendency of an atom to attract the electrons of a chemical bond in which it participates. True/False  Electronegativity is the tendency of an atom to lessen its electron density when bonded to another atom. True/False  Non-metals generally have more negative electron affinities than metals. True/False  Electronegativity is the amount of energy required to add an electron to a neutral atom. True/False  Electron affinity...
4.?Answer True or False for each of the following. 4 pts each The savings rate of...
4.?Answer True or False for each of the following. 4 pts each The savings rate of American households has been higher recently than in the late 1990s. In some less developed countries GDP grows more slowly than population does. Net domestic investment has been greater than net national savings for some time. ?Robert Solow identified capital as the major source of economic growth. ?Malthus says there is a tendency for population to rise faster than production, causing famine. ?Most economists...
What tools could AA leaders have used to increase their awareness of internal and external issues?...
What tools could AA leaders have used to increase their awareness of internal and external issues? ???ALASKA AIRLINES: NAVIGATING CHANGE In the autumn of 2007, Alaska Airlines executives adjourned at the end of a long and stressful day in the midst of a multi-day strategic planning session. Most headed outside to relax, unwind and enjoy a bonfire on the shore of Semiahmoo Spit, outside the meeting venue in Blaine, a seaport town in northwest Washington state. Meanwhile, several members of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT