Econ

The primary reason why a market for tradeable permits for carbon pollution to combat climate change is very difficult to implement because

A. climate change is a global problem requiring a global agreement on carbon emission reductions for a tradeable permit program.

Why are public goods underproduced?

A. Because the producer of the good only responds to the signals of paying consumers. B. Because paying consumers only demand the amount that personally satisfies them. C. Because others in society who don't pay for the good still perceive a benefit when others pay for the good.

Which of the following are characteristics of a public good?

A. non-excludable and non-rival

In which of the following cases of externality would the Coase Theorem likely NOT apply?

An oil tanker leaking 11 million gallons of crude oil into the ocean as it transports oil from Alaska to California

A market for tradeable pollution permits could be more effective than pollution taxes alone or command and control policies for all of the following reasons EXCEPT

C. tradeable pollution permits would likely be faster to implement than pollution taxes alone or command and control policies.

What does it mean for a good to be non-excludable?

D. Once the good is provided for paying consumers, other individuals cannot be prevented from also consuming the good.

What does it mean for a good to be rival?

D. One person's consumption of a good diminishes the quality of another person's consumption of the good.

Which event would be an example of a common property resource market failure

Highway congestion

In the market for measles vaccinations, which of the following correctly characterizes the benefits produced?

In the market for measles vaccinations, which of the following correctly characterizes the benefits produced?

What is an externality?

The impact of an action on an individual not involved in the decision-making process to take that action.

Which of the following are necessary conditions for the Coase Theorem to be a possible solution in the case of an externality?

Transaction costs (trying to reach an agreement) are low A fair market price for the good

According to economic theory, under what two conditions are command and control approaches to externalities warranted?

When success requires very strong compliance When they impact as few producers as possible

The provisions of public goods are generraly madeby the

government because of free riders

A positive externality imposes a

benifit upon third-parties.

public goods

can be jointly consumed by more than one person, with out the good being degraded

Reasons for Market failure

common property resources public goods products or services that create externalities

as a result of pigouvian tax

consumers pay more for electricity and producers lower output

A negative externality imposes a

cost upon third-parties.

Public beaches, public bathrooms, public schools, and public parks are all examples of public goods based on the economics definition of a "public good."

false

witch of these is a policy idea that the government could use to correct a negative externality

imposing a fee on waste from the production of goods that create negative externalities

The government's response in any market in which there is a positive externality is to

incentivize increased consumption of the good.

if an entrepreneur opens an adult day care center that produces positive externalities the equilibrium quanity of day care it produced will be

lower then socially optimal

A community college create blank for the comunnity

positive externalities

If the firecate charcoal factory is able to release black smoke into the air it will tend to

produce more then it would if it had to contain the smoke

Which of these actions is most likely to internalize a positive externality

providing an in-store discount card after getting the flue shot

When positive externalities are present the social demand curve lies to the

right of the demand curve and the private market under produces the good

If negative externality exists in a market the marginal

social cost exceeds the marginal private cost

what type of government policy is used when a positive externality is present

subsidies

If a metal stamping plant produces negative externalities who benefits

the firm and its custumers

If a positive externality exsit in a market the marginal

the marginal social benefit exceed the marginal private benefit

Market failure occurs when

the market does not provide the socially optimal amount of. GOOD

when negative externalities are present

the private market produces to much of that good

When a negative externality exists, the unregulated market produces

too much of the good and the price will be low when compared to the socially optimal production

If air pollution comes from multiple sources and it causes many people to suffer, then an efficient agreement among the parties is difficult to achieve because:

transaction cost are to high