Assume the following:• market quantity < socially desirableThe inequality above describes which of the following?O a. Budget SurplusO b. Positive Externalityc. Budget Deficitd. Negative ExternalityQUESTION 6In order to internalize a negative externality the government should implement aO a.subsidyb. free for allc. bidding ward. taxQUESTION 7In order to internalize a positive externality the government should implement aa. minimum wageb. taxc. subsidyd. spoils system QUESTION 10Which of the following types of firms are likely to respond to a corrective tax by reducing their pollution emissions?a. Firms with high abatement costsb. Firms that love the environmentc. Firms that want a boost to their public imaged. Firms with low abatement costsQUESTION 11In a tradable pollution permits system which of the following types of firms are likely to do most of the pollution reduction?a. Firms with high cost of reducing pollutionb. Firms with low cost of reducing pollutionc. Firms that pay low wagesd. Firms that pay high wagesQUESTION 12Which of the following argues for private solutions to externalities?Oa. Pigovian Theoremb. Coase TheoremC. Smith TheoremOd Folk Theorem.

Externalities are side effects of economic activities which are faced by the third parties. The…

Answered: Assume the following: • market quantity…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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A negative externality will cause a private market to produce Select one: a. less than is socially desirable. O b. more than is socially desirable. c. less than the same market would produce in the presence of a positive externality. O d. exactly the quantity that is socially desirable.
7. Failing to correct negative externalities will create a deadweight loss. Graph it! 8. Explain how the government can discourage negative externalities. Graph it!
2 The market for education confers positive externalities on society. Which of the following is an example of a positive externality that it provides? Higher quality of public institutions like government and law Subsidies for providing education Higher salary for the person earning a degree More colleges and universities X OOOO W F2 3 16 80 F3 E 888 FA R DE F % V T MacBook Air 6 Y B & 7 H tv NA 2 N 8 K M 0 W Aa zoom 0
Sub : EconomicsPls answer very fast.i ll upvote correct answer . Thank You The figure below shows the market for water-skiing permits on Shuswap Lake in British Columbia. Every person who wishes to water ski must obtain a permit, which is valid for one day. Suppose that each water skier imposes a $4 negative externality on other people who use the lake.
Refer to Figure. The graph represents a market in which 24 22 22 Price 18 16 81 Social cost (private cost and external cost) Supply (private cost) Demand (private valne) 120 160 Quantity a. Othere is no externality. b. Othere is a positive externality. c. Othere is a negative externality. d. The answer cannot be determined from inspection of the graph.
Suppose Scott and Bob live on the same street. in the winter, both of them like their street plowed. Bob's demand is given by 0 = 40 - P, and Scott's demand is gren by 0 = 30 - 2P. Suppose the marginal cost of plowing the snow is constant at $35 (a) What is the social marginal benefit curve? (b) What is the socially efficient amount of plowing? (c) What would be the socially efficient amount of plowing if the marginal cost of plowing were $5?
32 28 Social Cost 24 20 Private Cost 16 12 8 Demand 4 100 200 300 400 500 a. How many units of good are produced at the market equilibrium3 b. How much is the external cot for each unit of good produced? c. How many units of good should be produced at the social optimum? d. In order to reach the social optimum, what should the government do?
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6:14 1 .ul LTE O I moodle.ku.edu.kw P Flag question S Quantity Refer to the diagram, in which S is the market supply curve and S is a supply curve comprising all costs of production, including external costs. Assume that the number of people affected by these external costs is large. If the government wishes to establish an optimal allocation of resources in this market, it should Select one: O A SUbsidizo producors so that the Price II
45 40 35 30 25 20 P ($) Social cost Supply 15 10 Demand 5 0 0 10 20 30 40 50 60 70 80 90 100 wanted to tax or subsidize this good to achieve the Refer to the figure above. If the government socially-optimal level of output, it would Select one: O a introduce a subsidy of $10 per unit. O b. impose a tax of $10 per unit. Oo impose a tax of $15 per unit. Od introduce a subsidy of $15 per unit. 8
PRICE 20 18 16 14 12 10 8 6 4 2 Figure 10-3 Social Value Supply Demand, 2 4 6 8 10 12 14 16 18 20 QUANTITY Refer to Figure 10-3. If the government wanted to tax or subsidize this good to achieve the socially optimal level of output, it would O a. introduce a subsidy of $4 per unit. O b. impose a tax of $4 per unit. O c. impose a tax of $2 per unit. O d. introduce a subsidy of $2 per unit.
The graph shown demonstrates a tax on buyers. Before the tax was imposed. sellers produced for each one sold A 6: $24 B) 6: $22 9: $30 9: $38 a 34 30 22 18 6 E₁ 6 10 DI D₂ units and received

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Assume the following: • market quantity < socially desirable The inequality above describes which of the follow O a. Budget Surplus O b. Positive Externality