Question

Question 10 (1 point) Which of the following statements is true? a Since social benefits are...

Question 10 (1 point)

Which of the following statements is true?

a

Since social benefits are greater than the private benefits, the government must either aid the producer to encourage more output, or engage in its own production of the good with positive externalities.

b

Positive externalities occur when a third party is affected by the transaction in a negative way.

c

In a market with positive externalities, the good is “underproduced” because the producer is not bearing the full cost of production but receiving all the benefits from the production of the good.

d

All of the above.

e

Only a) and c)

Question 11 (1 point)

Which of the following statements is true?

a

Since for goods with positive externalities
social costs are greater than the private costs, the government must make the producer reduce the output of these goods.

b

The government can correct negative externalities
through direct controls/regulations or specific taxes.

c

Excise taxes are those imposed on a specific good or service.

d

All of the above.

e

Only b) and c)

Question 12 (1 point)

Which of the following statements is true?

a

Negative externalities result in an underallocation
of resources.

b

The government can correct positive externalities by using subsidies or by producing the good itself.

c

The Coase theorem suggests that under some conditions private bargaining can solve externality problems.

d

All of the above.

e

Only b) and c)

Homework Answers

Answer #1

Q10 Answer is A.

Positive externality means activities of one affect the other in positive way. For example park maintained by one affect the neighborhood positive because neighbours also receive good air quality due to park.

Q11 Answer is E. b and c.

Negative externalities are corrected by having taxes.

In case of positive externality social cost are lower then private cost.

Q12 Answer is E. b and c

Negative externality have over allocation. Positive externality have under allocation.

Positive externality are corrected by giving subsidies.

Coase theorem says private bargaining could solve the problem if there few party involved, transactions cost are low and property rights are well defined.

#Please rate positively...thank you

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Question 7 (1 point) Which of the following statements is true? a Examples of public goods...
Question 7 (1 point) Which of the following statements is true? a Examples of public goods include national defense, public music concerts, and outdoor fireworks displays. b Quasi-public goods are those that have large positive externalities (or spillover benefits). That is, quasi-public goods not only benefit those who pay for it but also some third party external to the market transaction. c The government typically sponsors the provision of quasi-public goods. d All of the above. e Only a) and...
Question 4 (1 point) Which of the following statements is true? a Excludability occurs when one’s...
Question 4 (1 point) Which of the following statements is true? a Excludability occurs when one’s consumption of a good makes it unavailable for others, and it comes in units that are small enough to be afforded by individual buyers. b Rivalry occurs when those who are unable and unwilling to pay for the good do not have access to the benefits of the good. c Since private goods have rivalry and excludability, private, firms can produce and sell them...
Which of the following statements is FALSE? A. When products that create positive externalities are produced,...
Which of the following statements is FALSE? A. When products that create positive externalities are produced, at the market equilibrium output, the marginal social benefit generated by consuming the product exceeds the marginal private benefit. B. When there is a negative externality, the competitive equilibrium output is greater than the economically efficient output level. C. The marginal social benefit of a given level of production of a public good is the vertical sum of all marginal private benefits for that...
Which of the following statements is true? a A market failure occurs when the market produces...
Which of the following statements is true? a A market failure occurs when the market produces the “wrong” amount of a good or service, or fails to provide any at all. b When there is market failure, resources are either over-allocated or under-allocated to the production of the good. c Supply-side market failures occur when it is impossible to charge all consumers, or even any consumer of the good, the price for the good. As a result, firms are not...
Question 10 (1 point) Which of the following statements is true? a Purchasing power is the...
Question 10 (1 point) Which of the following statements is true? a Purchasing power is the ability to buy goods and services. b While goods are tangible (say, apples and laptops), services are intangible (say, haircuts and lawn mowing). c Income is the amount of money one makes a year. d All of the above. e Only a) and b) Question 11 (1 point) Which of the following statements is true? a Price is the amount of money that must...
Question 19 (1 point) Which of the following statements is true in the simple circular flow...
Question 19 (1 point) Which of the following statements is true in the simple circular flow model? a Income flows into the households as a result of their supply of resources to firms. b Since there is no saving in this simple model, households use all their income for spending in goods and services supplied by firms. c When firms sell their goods, the money they receive is called revenue, which is used to pay for the resources firms hire....
Question 4 (1 point) Which of the following statements is true? a Entrepreneurs are the driving...
Question 4 (1 point) Which of the following statements is true? a Entrepreneurs are the driving force behind production. b Entrepreneurs risk their time, effort, ability and money because not all ideas or new products will be profitable. c Examples of entrepreneurs are innovators and risk-taking investors. d All of the above. e Only a) and b) Question 5 (1 point) Which of the following statements is true? a Society faces the problem of scarcity of resources. b Resources are...
Question 21 (1 point) Which of the following statements is true? a To prevent the politicization...
Question 21 (1 point) Which of the following statements is true? a To prevent the politicization of macro policies, most countries have put politically independent central banks in charge of monetary policy. b Regulatory capture happens when a government agency’s regulations and enforcement activities come to be heavily influenced by the industry it is supposed to be regulating. c Political corruption is the unlawful misdirection of governmental resources that occurs when governmental officials abuse their entrusted powers for personal gain....
Question 27 (1 point) Which of the following statements is true? a The standard of living...
Question 27 (1 point) Which of the following statements is true? a The standard of living in a country can be estimated using Real GDP per capita (per person) b By definition, Real GDP per capita = Real GDP / Population. c A key principle of economic growth is that in order to raise the standard of living of a country over time, an economy must devote some of its current output to increasing future output. This requires both saving...
Question 7 (1 point) Which of the following statements is true regarding common assumptions in economics?...
Question 7 (1 point) Which of the following statements is true regarding common assumptions in economics? a Only some individuals are rational and make decisions based on self-interest. b Everybody makes decisions with a desired outcome in mind. c Self-interest does not mean “selfishness”. It means that it is one who decides what the “ultimate” goal is. Helping others can be part of the goal. d All of the above. e Only a) and b) Question 8 (1 point) Which...