A positive externality arises when a third party, outside the markettransaction,fails to allocate resources efficientlyPays less for the good or servicebenefits from a market transactionpays a pollution tax to balance social costs

An externality is an incidental effect or result of an industrial or commercial action that…

Answered: A positive externality arises when a…

A positive externality arises when a third party, outside the market transaction, fails to allocate resources efficiently O Pays less for the good or service O benefits from a market transaction

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 2SQ

See similar textbooks

Related questions

Q: Determine the type of market failure represented by the scenario below: Construction of a bowling…

A: Externality refers to the cost or benefit of transaction on society or third party who is not…

Q: International Agreements on Trade and the Environment a. In panel A, Home enjoys positive production…

A: Externalities occurs when the consumption or production of a good has an influence on parties who…

Q: Which of the following statements about external costs is TRUE? A Economics uses the term "external…

A: Here's why the other options are incorrect:a) Incorrect: External costs can be significant and have…

Q: The figure shown reflects the presence of Social Cost Private Cost P. Demand Quantity positive…

A: Externality refers to cost or benefit which occurs from production and falls on the third party who…

Q: According to the private parties can solve the problem of externalities if they can bargain without…

A: The Coase theorem states that private parties can solve the problem of externalities if they can…

Q: If the units of output purchased in a competitive market generate positive externality benefits, we…

A: Positive externalities generate an external benefit to third parties. This is the spillover or…

Q: Consider a market where production of the good is creating a negative externality. In the market…

A: In an economy, negative externality refers to the situation when there is an additional cost…

Q: Market failure refers to a situabon where a market economy collapses OA. False OB. True

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: O the economy can benefit from government intervention. O a person engages in an activity that…

A: The firm produces various goods and services and has a cost on the production on the goods and…

Q: A positive externality causes Select one: a. the marginal social benefit to be equal to the marginal…

A: A positive externality occurs when an economic activity generates benefits for individuals or…

Q: Price Ps Pp as Qp External Cost Social Cost Benefit Private Cost Quantity

A: Externality is an economic term that refers to the costs or advantages borne by a third party who…

Q: In economic term, COVID-19 vaccinations provide A. negative externality B. positive externality…

A: An externality is a cost or benefit incurred or received to society due to the production process.

Q: When negative externalities are present in the production of car tyres, the marginal social cost of…

A: Negative externality is the cost associated with the production or consumption of a good, which is…

Q: An externality exists when Othere are internal costs. O there are private costs. O there are…

A: An externality is a crucial concept in economics that arises when economic transactions generate…

Q: Which of the following is likely to generate a negative externality? O Planting a tree O Working for…

A: Negative externality: A cost incurred by a third party as a result of an economic transaction that…

Q: The graph below depicts the market for a good with what type of externality present? Price 227 20 18…

A: The external cost is the cost that is borne by the third party. There is positive externality when…

Q: Does the following activity or event create an extemality? If it does, is it an external benefit or…

A: An activity by others that affects other parties is known as external cost. It may be cost or…

Q: Determine the type of market failure represented by the scenario below: Buying a used appliance on…

A: In a market, there are different types of market failure occurs under different situations.

Q: The following graph represents the market for high-emissions cars. Answer this question assuming…

A: In the presence of the externality. The social marginal cost is greater than the private marginal…

Q: best example of a positive external benefit generated

A: A positive external benefit is the benefit which an individual can get in spite of being unrelated.…

Q: The market below has an externality. Which area represents the total cost or benefit of the…

A: In a market, the society optimizes its social surplus by producing and consuming a unit of good…

Q: ST A. Panel 11 C. Panels 1 and 2 Panel 1 Q₂ Q₁ Quantity S₂ S₁ PA P. Panel 2 Q3 Q4 Quantity D₂ hift…

A: Externality refers to the external cost or benefit generated as a result of the production or…

Q: Fish that swim in international waters are a common good that are freely available to anyone who…

A: ANSWER Fish that are huge in size, carry on with quite a while and are delayed to duplicate are…

Q: How does this affect the firm's profit? Are consumers willing to pay more?

A: Introduction: Factor cost, also known as national income by kind of revenue, is a measure of…

Q: This graph represents the tobacco industry. IPrice 16 14 Social Cost 12 10 Private Cost 8 6 4 Demand…

A: The market equilibrium is where the demand of the good is equal to the supply of the good.…

Q: What is an external benefit? An external benefit is a benefit that OA. always equals external cost…

A: An external benefit refers to a positive impact or advantage that arises from an economic…

Q: Refer to Figure. The graph represents a market in which Price 22 24 22 18 16 Social cost (private…

A: A cost or benefit that is incurred by the third party who is not primarily associated with the…

Q: Mankiw Chapter 11 2 b Are the externalities associated with common resources generally positive or…

A: Externalities are harmful or beneficial side effects borne by those not directly involved in the…

Q: Define externalities. If there is a negative externality at alocal, please propose on how to solve…

A: Because the market does not fully price the external effects of some economic activities,…

Q: Which statement about externalities is wrong? O Markets are typically not efficient in dealing with…

A: An externality, in economics, refers to an indirect cost or benefit experienced by a third party…

Q: Consider the decision to adopt a dog. Describe aprivate cost, a private benefit, an external cost,…

A: An externality occurs when the consequences of an economic transaction are borne by a third party…

Q: In a situation where an externality occurs, the "third party" refers to those who a) buy the product…

A: Private marginal cost refers to the cost of producing one more unit of a commodity.Social marginal…

Q: When externalities cause markets to be inefficient (x) government action is sometimes needed to…

A: Externalities occur when the production or consumption of a good or service creates costs or…

Q: In some cases, pollution permits may be better than a Pigovian tax because Select one: a. pollution…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: An increase in globalization has lead to an increase in pollution, and this is a problem because…

A: The cost or benefit that is being caused by a producer that is not being received or incurred…

Question

A positive externality arises when a third party, outside the market
transaction,
fails to allocate resources efficiently
Pays less for the good or service
benefits from a market transaction
pays a pollution tax to balance social costs

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Externality

VIEW

Step 2: Explain the correct option

VIEW

Step 3: Explain why other options are incorrect

VIEW

Solution

VIEW

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Which of the following is an example of a positive externality?A. Pollution from a factoryB. Noise from a construction siteC. Vaccinations reducing the spread of diseaseD. Traffic congestion in a city
Using deforestation as an example explain negative externalities
Which of the following is an example of a positive externality? A. Pollution from a factory B. Noise from a construction site C. Vaccinations reducing the spread of disease D. Traffic congestion in a city
An externality is the impact of: a. None of the answers is correct. b. one person’s actions on the well-being of another person c. a person’s actions on his well-being.
When negative externalities are present in the production of car tyres, the marginal social cost of producing tyres. Jika kesan luaran negatif wujud dalam pengeluaran tayar kereta, kos sosial marginal pengeluaran tayar a. equal the marginal benefit received by consumers if competitive markets exist and there is no government intervention adalah sama dengan faedah marginal yang diterima oleh pengguna jika wujud pasaran yang kompetitif dan tiada campur tangan kerajaan b. equals the marginal cost borne by the firm minus the marginal external cost resulting from the production and consumption of the good adalah sama dengan kos marginal yang ditanggung oleh firma tolak kos luaran marginal hasil daripada pengeluaran dan penggunaan barang c. equals the marginal cost borne by the firm plus the marginal cost borne by third parties from the production and consumption of the good adalah sama dengan kos marginal yang ditanggung oleh firma ditambah dengan kos marginal yar ditanggung oleh pihak…
Don't copy answer any site otherwise I will report
Which of the following is an example of an externality? (x) cigarette smoke that permeates an entire restaurant (y) a flu shot that prevents a student from transmitting the virus to her roommate (z) a beautiful flower garden outside of the local post office Select one or more: a. (x), (y) and (z) b. (x) and (y) only c. (x) and (z) only d. (y) and (z) only e. (y) only
Micro economics question Need solution
Which of the following is a positive externality? A. bike pathsB. contaminated waterC. food produced in unsanitary processing plantsD. automobiles produced without seat belts
Does the following activity or event create an extemality? If it does, is it an external benefit or external cost and does it arise from production or consumption? An increase in the number of people who are studying for graduate degrees creates A person who wears strong perfume to class creates, Airplanes taking off from LaGuardia Airport during the US. Open tennis tournament nearby create A sunset over the Pacific Ocean creates OA. an external cost arising from production; no externality B. an external benefit arising from consumption; an external benefit arising from consumption OC. an external cost arising from consumption; no externality D. an external benefit arising from production; an external benefit arising from consumption OA. an external benefit arising from production; an external cost arising from production оооо B. an external cost arising from consumption; an external benefit arising from consumption OC. an external cost arising from production; an external benefit…
Draw a graph of water pollution as a negative externality and explain it
How the subsidies can solution the externalities problem