Econ exam 3

a tariff is a

A tax on imported goods

what is the difference between command-and-control policies and market-based policies towards externalities

Command-and-control policies regulate behavior directly, whereas market-based policies provide incentives for private decisionmakers to change their behavior.

is it legal for a biochemical manufacturer to release its waste into a nearby stream, then this is an example of

a command-and-control policy

Good that are rival in consumption but not excludable would be considered

a common resource

the sign on a church in your neighborhood reads "all are welcome at Sunday Service." because the church has limited seating and is usually full, the sunday service is

a common resource

which of the following goods

a congested toll read

the difference between a corrective tax and a tradable pollution permit is that

a corrective tax sets the price of pollution and a permit sets the quantity of pollution

When a country moves away from a free trade position and imposes a tariff on imports, it causes

a decrease in total surplus in the market.

an example of a private good would be

a pair of pants

Because elephants roam freely in many countries in Africa, each individual African elephant poacher has

a strong incentive to kill as many elephants as he can find

the price corresponding to the horizontal dotted line on the graph represents the price of cars

before trade is allowed

which of the following represents a way that a government can help the private market to internalize an

both _ and _ are correct

Why do elephants face the threat of extinction while cows do not?

cattle are owned by ranchers, while elephants are owned by no one

Private markets fail to account for externalities because

decision makers in the market fail to include the costs of their behavior to third parties.

When a country allows trade and becomes an importer of a good,

domestic producers become worse off, and domestic consumers become better off.

a tariff on a product makes

domestic sellers better off and domestic buyers worse off

If an aluminum manufacturer does not bear the entire cost of the smoke it emits, it will

emit a higher level of smoke than is socially efficient.

For any country, if the world price of zinc is higher than the domestic price of zinc without trade, that country should

export zinc, since that country has a comparative advantage in zinc

a command-and-control policy is another term for a

government regulation

negative externalities lead markets to produce

greater than efficient output levels and positive externalities lead markets to produce smaller than efficient output levels.

if the world price of textiles is higher Vietnams domestic price ...

has a comparative advantage in textiles

the country for which the figure is drawn

has a comparative advantage relative to other countries in the production of crude oil and it will export crude oil

which of the following statements is correct

idk

"Owners of firms in young industries should be will to inquire temporary losses if they believe that those firms will be profitable in the long run." this observation helps to explain why many economics are skeptical about the.

infant-industry argument

When an externality is present, the market equilibrium is

insufficient, and the and the equilibrium does not maximize the total benefit to society as a whole

the infant-industry argument

is based on the belief that protecting industries when they are young will pay off later

Mary and Cathy are roommates. Mary assigns a $30 value to smoking cigarettes. Cathy values smoke-free air at $15. Which of the following scenarios is a successful example of the Coase theorem?

mary pays cathy $16 so that mary can smoke

which of the following policies is an example of a command-and-control policy ?

maximum levels of pollution that factories will emit

corrective taxes are unlike most other taxes because they

move the allocation of resources closer to the social optimum.

An AM radio transmission of a baseball game is

not excludable and not rival in consumption

at the local park there is a playground that anyone can use. there is rarely anyone using the playground, so the children that use the playground receive full enjoyment from its use. the playground is.

not rival in consumption nor is it excludable

Most lighthouses are operated by the government because

of the free rider problem

An externality is the impact of

one person's actions on the well-being of a bystander

the course theorem asserts that, in presence of externalities

private economic actors sometimes can reach a bargain that produces an efficient outcome

suppose new zealand goes from being an isolated...

producer surplus increases for producers off wool in new zealand

a free rider is a person who?

receives the benefit of a good but avoids paying for it

which of the following is not a negative externality associated with driving cars?

repairs

When the nation of Duxembourg allows trade and becomes an importer of software,

residents who produce software become worse off. residents who buy the soft wear become better off. and the economic well-being of Duxembourg rises.

internalizing a positive externality will cause the demand curve to

shift to the right

the preposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of externalities on their own, it's called

the course theorem

to achieve the optimal provisions of public goods, the

the government must either provide the goods or subsidize their production

47-50 idk

this will get you a get you a 90

Which parable describes the problem of wild animals that are hunted to the point of extinction?

tragedy of the commons

in many cases the course theorem does not work well because

transaction counts are too high

Without government intervention, public goods tend to be

underproduced and common resources tent to be over produced

under which of the following scenarios would a park be considered a common resource?

violators can enter the park free of charge, but frequently all of the picnic tables are in use

in a market economy, government intervention

will always improve market outcomes