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- a. When a firm imposes an external social cost (negative externality), the government should impose a tax on production equal to the externality cost to ensure that the market will achieve the socially optimal outcome. Select one: True False b. The socially optimal level of emissions of most pollutants is zero. Select one: True False c. Externalities are only inefficient when they impose a cost. They are not inefficient when they bestow a benefit. Select one: True FalseWhich of the following are examples of negative externalities? A. Reduced spread of COVID-19 and other infectious diseases from people physically distancing and wearing masks. B. Unsightly oil rigs offshore from Santa Barbara, diminishing the quality of the view for beachgoers and coastal homeowners. C. Reduced incidence of the common flu stemming from more people obtaining flu shots during the Fall. D. Reduced crime rates stemming from rapid economic growth and reduced unemployment. E. High gas prices caused by rapid demand growth in China. F. Job losses associated with a factory closure in the United States, because a factory was opened in Mexico to replace it. G. Noise from traffic on a busy street. H. Light pollution from cities making it more difficult for observatories to view distant stars. I. Noise pollution eminating from windmills on the North Shore of Oahu. J. Pollution emissions from power plants.If positive externalities exist in a market, then OSocial cost is greater than private cost OSocial cost is equal to private cost OSocial cost is lower than private cost
- The side effect of an action that increases the well-being of others is called 8888 ah augmentation. an elasticity. a passive benefit. a positive externality.Which of the following is NOT part of the Coasian Solution to the problem of externalities? Clearly and fully define property rights. Make individuals pay compensation if they infringe upon the property rights others. Prevent parties from negotiating with one another regarding infringements of property rights caused by externalities. None of the above answers is correct (since each choice is part of the Coasian Solution to the problem of externalities).Choose correct option. Q) The adoption of Qwerty keyboard over Dvorak is a result of, a) History b) Complementarity c) Negative externalities d) History and Complementarities. Note:- sent me answer early.
- NoneIf people took external benefits, such as cleaner air, into consideration when deciding how much to consume of goods that cause externalities: I. they would consume less II. they would act in a way that is optimal from a societal perspective. III. the markets for these goods would generate greater surplus. Multiple Choice II and II only I,II, and II I and II only I and III onlyAssume your neighbor throws trash in his yard. He gets $50 worth of benefit from littering, which imposes a $90 cost to you. According to Coase, you should? pay your neighbor $40 to clean up his yard. offer to clean his yard for $40. deal with it. offer him between $51 and $90 if he will keep his yard clean. Negative externalities lead to? maximum efficiency. inefficiency. minimum efficiency. compensation. Usually the cost of preventing an external cost is less than the cost of correcting it after it has occurred. True False Which of the following statements is not true? Establishing property rights may be a way to internalize an externality. Internalizing an externality is not the same as inducing the producer of an externality to consider both private and social costs in production decisions. If the producer produces the socially optimal output level, the externality is internalized. The producer calculates all costs and benefits into production decisions. Derived demand for labor…
- An effluent fee O is a reward to companies using production methods that create positive externalities. O is also called a pollution subsidy. O gives a firm the right to pollute if it pays a tax on what it discharges. O is intended influence the market by increasing supply and decreasing price.These two situations have arisen: Agricultural technologies become available that if used reduce adverse effects fromfarming on environmental quality Water from a uranium mine is leaking into Kakadu NationalPark For each case you are to identify possible external effects that might occur and explain the conditions that would need to exist, and what the government or the affected parties could do, to change these negative situations for the betterment of one or both parties?It's important to note that sometimes private solutions to externalities do not work. For example, this occurs when the number of parties involved is so large that it makes..... "government action the only viable solution" "coordinating negotiations among all of the parties too costly" Which one of the two options above is the answer? Thanks