Question

1 points Save Answer QUESTION 29 Which of the following are externalities (to drivers) of the number of miles they drive? a. wear and tear on highways D. the probability of getting in an accident involving another driver C. the length of time it takes the average driver to get from point A to Point B d. A and above QUESTION 30 1 points Save Answer Given multiple sources for a uniformly mixed air pollutant where the optimal level of the pollutant is precisely known. Which control method is likely to be the least cost effective? atradable emissions permits (cap and trade) b. emissions charges C. emissions standards (Command and Control, CAC) d. none of the above 1 points Save Answer QUESTION 31 According to the cob-web model (Figure 2) the feast and famine cycle can be explained as... a. farmers are not aware that the market is not in equilibrium D. farmers plan this year's supply based on last year's prices f armers try to predict the demand curve based on observed prices and quantities sold. C d. All of the above

Answer 1

29. externalities are effects of actions of others on one's welfare / well being

Hence the right answer is b. probability of getting into an accident, which depends not only on how one drives but also how others drive

30. the right answer is b. since emission charges are applicable on everyone without any consideration for the propensity of someone to pay for them

31. the right answer is d. since all these factors lead to a situation of either over-supply or shortfall