Question

11.At present, the cost of the clean air and water regulations is

A) higher then the benefits of these regulations for the population overall

B) equal than the benefits of these regulations for the population overall

C) lower then the benefits of these regulations for the population overall

9. The supply curve in the market is shifted farther to the right than is optimal or efficient if

a) this is a public good market

b) there are external costs not accounted for by the market

c) there are external benefits not accounted for by the market

8. Below are illustrations of various externalities. Which illustration is of a negative externality?

a) the city airport now has a glassed off enclosed section in each terminal where smokers can go to smoke without disturbing non-smokers

b) a large train station hub is constructed supporting commercial transport and travel in a large city

c) a hotel adds a large outdoor area for festivals, concerts and outdoor conventions. The neighborhood is now filled with noise on a constant basis

14. The reason why a pollution tax results in a. socially efficient level of pollution is that

a) it makes the polluter take into account the external costs of their actions

b) it increases revenues for the government

c) it punishes producers for wrongdoing

Answer 1

As per the Chegg guidelines, we are allowed to answer 1 question, in case of multiple questions being asked or else we will be revoked.

Question 9

A shift in the supply curve shift of further in the right implies that the goods provide positive externalities in the economy which are not accounted by the equilibrium point. Hence the correct answer will be c i.e, there are external benefits not accounted for by the market.