Correct Answer:
D
Charging effluent fees or equivalent tax is applied to correct negative externality. All other alternatives can be used to correct positive externality.
All of the following illustrate how government can correct for positive externalities EXCEPT a)subsidies, b)regulation, c)government...
All of these are used when positive externalities exist, EXCEPT: Question 93 options: a) coupons. b) vouchers. c) taxes. d) subsidies. Which of these is a policy idea that the government could use to correct a negative externality? Question 92 options: a) encouraging the over-allocation of resources of production that create negative externalities b) providing government subsidies to producers of goods that create negative externalities c) imposing a fee on waste from the production of goods that create negative externalities...
Provide examples of the following types of government intervention in healthcare: a. Government production b. Subsidies for products c. Taxes on products d. Price regulation e. Quality regulation f. Inaction (Please explain why it is an example as well)
Products with positive externalities are under-consumed, thus creating a market failure. How can the government correct this failure? (Check all that apply) I. By taxing the output of the product to increase tax revenue. II. By paying subsidies to the producers to lower the cost of the product to potential buyers. III. By reducing the marginal social benefit of the product, thus eliminating the externality. IV. By requiring producers to manufacture more of the product. V. By producing it themselves...
What is a valid government response to a market with positive externalities? a) The implementation of a tax b) The provision of subsidies c) Increased regulation of the transaction d) The provision of free information regarding the true costs and benefits of the transaction Consumers often face a trade-off between ______ and ______. a) higher income; productive capacity b) leisure; time c) current consumption; future consumption d) labor; future consumption
To correct for positive externalities, the government should A) do nothing, since no harm is done by positive externalities B) Levy a tax on the output of the good or service C) pay a subsidy equal to the marginal external benefit D) impose a price ceiling on the good to discourage its production E) impose a price floor on the good at which the marginal private benefit equals the marginal social cost
The roles of government include all of the following tasks except Oproviding public financing when appropriate. O protecting health of individuals against unsafe products. O providing public goods. O taking over production of healthcare services causing positive externalities.
Question 2 (10 points) The government can address nexternalities through the following: taxes, subsidies and federal reserve policies Oall of the above Onone of the above subsidies, taxes and regulation
Externalities require government intervention when A. violence will result between disputing parties. B. there are only a few sellers in the market. C. property rights are not clearly established. D. the government imposes sales taxes. E. all of these answer options are correct.
4. (10) The Pigouvian Approach to Externalities The following diagram displays a negative consumption externality, smoking. Note that, in contrast to the treatment of a negative production externality, the negative consumption externality is treated as causing a divergence between the marginal private benefit (MPB) of a cigarette and its marginal social benefit (MSB). The price on the y- axis is the consumer price. Assume that there are no production externalities, MSC- MPC, and that S-S-S. Recall that the cigarette industry...
4. (10) The Pigouvian Approach to Externalities The following diagram displays a negative consumption externality, smoking. Note that, in contrast to the treatment of a negative production externality, the negative consumption externality is treated as causing a divergence between the marginal private benefit (MPB) of a cigarette and its marginal social benefit (MSB). The price on the y- axis is the consumer price. Assume that there are no production externalities, MSC MPC, and that S-$-S. Recall that the cigarette industry...