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nt should implement a Oc. Lower price and higher quantity C. Od. Higher price and lower quantity QUESTION 15 Which of the following is a reason why private solutions O a. All parties want credit, but do not want to do any Ob. The question is decieving because they are actua c. People are stubburn. The bargaining simply breal O d. Greedy businesspeople would rather pay greedy

nt should implement a Oc. Lower price and higher quantity C. Od. Higher price and lower quantity QUESTION 15 Which of the following is a reason why private solutions O a. All parties want credit, but do not want to do any Ob. The question is decieving because they are actua c. People are stubburn. The bargaining simply breal O d. Greedy businesspeople would rather pay greedy

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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QUESTION 1 With negative externalities, the social cost includes a. public cost & opportunity cost O b. private cost & external cost Oc. external cost & opportunity cost Od. internal cost & private cost QUESTION 2 Assume the following: Social Cost = $150 . Private Cost = $125 What must the external cost equal? Oa. $275 O b. $25 O c. $0 O d. $150 QUESTION 3 Altering incentives so that people take into account the external effects of their actions is known as O a. changing the game O b. rigging the system Oc. internalizing the externality Od. stacking the deck QUESTION 4 Assume the following: market quantity> socially desirable The inequality above describes which of the following? Oa. Negative Externality Ob. Positive Externality Oc. Budget Deficit Od. Budget Surplus Assume the following: market quantity < socially desirable The inequality above describes which of the following? Oa. Budget Surplus O b. Positive Externality c. Budget Deficit O d. Negative Externality QUESTION 6 In order to internalize a negative externality the government should implement a O a.subsidy O b. free for all O c. bidding war O d. tax QUESTION 7 In order to internalize a positive externality the government should implement a a. minimum wage b. tax Oc. subsidy O d. spoils system Ob. Coase Theorem OC. Smith Theorem Od. Folk Theorem QUESTION 8 O b. Decrease in supply c. Decrease in demand Od. Increase in supply Which of the following is O a. Pigovian Tax O b. Adjustment Tax Oc. Proper Tax Od. Coase Tax QUESTION 16 a corrective tax that aligns private incentives with society's interest? QUESTION 9 The value of a corrective tax, aimed at internalizing a negative externality, should equal O a. the willingness to pay Ob. the willingness to sale O c. 10% of the polluter's monthly income O d. the amount of the external cost QUESTION TO™ - Which of the following types of firms are likely to respond to a corrective tax by reducing their pollution emissions? Oa. Firms with high abatement costs Ob. Firms that love the environment Oc. Firms that want a boost to their public image Od. Firms with low abatement costs QUESTION 11 In a tradable pollution permits system which of the following types of firms are likely to do most of the pollution reduction? Oa. Firms with high cost of reducing pollution Ob. Firms with low cost of reducing pollution Oc. Firms that pay low wages Od. Firms that pay high wages QUESTION 12 QUESTION 12 Which of the following argues for private solutions to externalities? Oa. Pigovian Theorem Which of the following argues for private solutions to externalities? Oa. Pigovian Theorem Ob. Coase Theorem OC. Smith Theorem Od Enik Thanram QUESTION 13 Which of the following is the initial impact of implementing a corrective tax aimed at correcting the market failure of a negative externality? a. Increase in demand QUESTION 14 What is the ultimate outcome of implementing a corrective tax aimed at correcting the market failure of a negative externality? Oa. Higher price and higher quantity O b. Lower price and lower quantity Oc. Lower price and higher quantity Od. Higher price and lower quantity QUESTION 15 Which of the following is a reason why private solutions are often ineffective at remedying externalities? Oa. All parties want credit, but do not want to do any of the work. O b. The question is decieving because they are actually quite effective. Oc. People are stubburn. The bargaining simply breaks down. O d. Greedy businesspeople would rather pay greedy politicians taxes instead of handling the matter privately. Corrective taxes and tradable pollution permits are which type of policies? Oa. Government-based O b. Corporation-based Oc. Market-based Od. Socially-based
Transcribed Image Text:QUESTION 1 With negative externalities, the social cost includes a. public cost & opportunity cost O b. private cost & external cost Oc. external cost & opportunity cost Od. internal cost & private cost QUESTION 2 Assume the following: Social Cost = $150 . Private Cost = $125 What must the external cost equal? Oa. $275 O b. $25 O c. $0 O d. $150 QUESTION 3 Altering incentives so that people take into account the external effects of their actions is known as O a. changing the game O b. rigging the system Oc. internalizing the externality Od. stacking the deck QUESTION 4 Assume the following: market quantity> socially desirable The inequality above describes which of the following? Oa. Negative Externality Ob. Positive Externality Oc. Budget Deficit Od. Budget Surplus Assume the following: market quantity < socially desirable The inequality above describes which of the following? Oa. Budget Surplus O b. Positive Externality c. Budget Deficit O d. Negative Externality QUESTION 6 In order to internalize a negative externality the government should implement a O a.subsidy O b. free for all O c. bidding war O d. tax QUESTION 7 In order to internalize a positive externality the government should implement a a. minimum wage b. tax Oc. subsidy O d. spoils system Ob. Coase Theorem OC. Smith Theorem Od. Folk Theorem QUESTION 8 O b. Decrease in supply c. Decrease in demand Od. Increase in supply Which of the following is O a. Pigovian Tax O b. Adjustment Tax Oc. Proper Tax Od. Coase Tax QUESTION 16 a corrective tax that aligns private incentives with society's interest? QUESTION 9 The value of a corrective tax, aimed at internalizing a negative externality, should equal O a. the willingness to pay Ob. the willingness to sale O c. 10% of the polluter's monthly income O d. the amount of the external cost QUESTION TO™ - Which of the following types of firms are likely to respond to a corrective tax by reducing their pollution emissions? Oa. Firms with high abatement costs Ob. Firms that love the environment Oc. Firms that want a boost to their public image Od. Firms with low abatement costs QUESTION 11 In a tradable pollution permits system which of the following types of firms are likely to do most of the pollution reduction? Oa. Firms with high cost of reducing pollution Ob. Firms with low cost of reducing pollution Oc. Firms that pay low wages Od. Firms that pay high wages QUESTION 12 QUESTION 12 Which of the following argues for private solutions to externalities? Oa. Pigovian Theorem Which of the following argues for private solutions to externalities? Oa. Pigovian Theorem Ob. Coase Theorem OC. Smith Theorem Od Enik Thanram QUESTION 13 Which of the following is the initial impact of implementing a corrective tax aimed at correcting the market failure of a negative externality? a. Increase in demand QUESTION 14 What is the ultimate outcome of implementing a corrective tax aimed at correcting the market failure of a negative externality? Oa. Higher price and higher quantity O b. Lower price and lower quantity Oc. Lower price and higher quantity Od. Higher price and lower quantity QUESTION 15 Which of the following is a reason why private solutions are often ineffective at remedying externalities? Oa. All parties want credit, but do not want to do any of the work. O b. The question is decieving because they are actually quite effective. Oc. People are stubburn. The bargaining simply breaks down. O d. Greedy businesspeople would rather pay greedy politicians taxes instead of handling the matter privately. Corrective taxes and tradable pollution permits are which type of policies? Oa. Government-based O b. Corporation-based Oc. Market-based Od. Socially-based
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