Econ Test Review: Chapter 13
When an activity has a private marginal benefit of Di, a private marginal cost of Si, and a positive externality, which curve best represents the social marginal benefit?
D2
Which statement describes a public good?
It is nonrival in consumption and non excludable.
Which of these is non excludable but rival?
a common property resource
All of these are consequences of global warming EXCEPT:
an increase in the natural carbon absorption system
The largest form of greenhouse gases caused by human activity is:
carbon dioxide from the use of fossil fuel
Which of these is a pure public good?
environmental protection
Global warming is described as a ______ negative externality with a _____ time horizon.
large; long
If an unregulated industry generated pollution, the market price is ____ then the socially optimal price, and the market quantity is _____ than the socially optimal quantity
less; greater
Which of these is not a major cause of greenhouse gas emissions?
soybean farming
What type of government policy is generally used when a positive externality is present?
subsidies