Ans - (A)
In the case of negative externality social benefit curve,private benefit curve and demand curves are same.
If a negative externality were present in a market, the social benefit curve would be: Multiple...
QUESTION 18 Someone smoking in a crowded room is an example of: a positive production externality. a negative production externality. a negative consumption externality. not an externality. QUESTION 19 The cyclical deficit is the portion of the deficit created by business cycle fluctuations in GDP. that is the result of nondiscretionary federal spending. the result of discretionary federal spending- that would exist if the economy were at potential GDP. QUESTION 20 A subsidy paid to buyers to correct a market...
4. The effect of negative externalities on the optimal quantity of consumption Consider the market for paper. Suppose that a paper factory dumps toxic waste into a nearby river, creating a negative externality for those living downstream from the factory. Producing an additional ton of paper imposes a constant marginal external cost of $100 per ton. The following graph shows the demand curve and the private marginal cost (MC) curve for paper. (Note: The demand for the plant's paper is...
3. The effect of negative externalities on the optimal quantity of consumption Consider the market for steel. Suppose that a steel manufacturing plant dumps toxic waste into a nearby river, creating a negative externality for those living downstream from the plant. Producing an additional ton of steel imposes a constant external cost of $385 per ton. The following graph shows the demand (private value) curve and the supply (private cost) curve for steel, Use the purple points (diamond symbol) to...
Using a supply-demand diagram, illustrate a: a. negative externality b. Positive externality c. in which of the above would the market, if left alone, produce too much of the good?
3. The effect of negative externalities on the optlmal quantityof consumption Consider the market for bolts. Suppose that a hardware factory dumps toxic waste Into a nearby river, creating a negative externality for those living from the factory. Producing an additional ton of bolts Imposes a constant external cost of $150 per ton. The following graph shows the cost) curve for bolts. supply (private Use the purple points (diamand symbol) to plot the social cost curve when the external cost...
In the presence of a “negative externality,” the free market would: Provide more than the efficient amount of the good Provide less than the efficient amount of the good Cause trade to take place at a price of $0 None of the above answers are correct
QUESTION 17 Suppose a firm produces pollution when it generates electricity. The cost of the pollution is called the private marginal cost. social marginal cost. marginal cost. external marginal cost QUESTION 18 Someone smoking in a crowded room is an example of a positive production externality. a negative production externality. a negative consumption externality. not an externality QUESTION 19 The cyclical deficit is the portion of the deficit created by business cycle fluctuations in GDP that is the result of...
21. By including the costs from negative externalities imposed on society, an efficient level of output will be produced when: (a) marginal benefit equals opportunity cost. (b) marginal private benefit equals marginal private cost. (c) market demand equals marginal private cost. (d) marginal private cost equals marginal social cost. (e) marginal benefit equals marginal social cost. 22. What is NOT an example of a positive externality? (a) Improved educational outcomes in society. (b) Winning $1 million dollars at the casino...
8. Which of the following activities create a negative externality? a. cleaning up the sidewalk on your block b. keeping a junked car parked on your front lawn C. repainting the house you live in to improve its appearance d. graduating from college 9. Which of the following is an example of a negative externality? a. closing down a segment of a beach because of an oil spill b. purchasing a home that has an unobstructed view of rolling hills...
3. Move the demand curve below to illustrate this shift. Be sure to take the exact size of the subsidy into account. Precise answers are required. 4. Move the government support line to illustrate a situation in which an individual will earn an income higher than the government support income if they work more than 2,000 hours. Question 3 The figure below shows the market for driver education programs. The market demand curve for driver education reflects only the marginal...