Which 2 of the following are true: (If you wish to change your response, please untick your selected answer before selecting another answer.) If private provision of a public good is x units and the efficient level is y units, then the government can make the market efficient by providing y - x units. In the presence of externalities, Walrasian Equilibria can never be Pareto efficient. If a person cleans their home one evening, then wakes up the following morning in a good mood due to having a clean home then this is an example of a positive externality. If Andy's consumption of a good inflicts a negative externality on Bob then the efficient solution must be where Andy doesn't consume any of that good. O When stormy weather destroys a householder's fence this is an example of a negative externality. If a homeowner pays someone to fix the pavement outside their house to improve their access, but this also improves the access of other pedestrians then this is an example of a positive externality. If a person hires a cleaner to clean their home and is then cheered up by having a clean home then this is an example of a positive externality. An individual's decision to provide a public good will create a positive externality for other members of society.
Which 2 of the following are true: (If you wish to change your response, please untick your selected answer before selecting another answer.) If private provision of a public good is x units and the efficient level is y units, then the government can make the market efficient by providing y - x units. In the presence of externalities, Walrasian Equilibria can never be Pareto efficient. If a person cleans their home one evening, then wakes up the following morning in a good mood due to having a clean home then this is an example of a positive externality. If Andy's consumption of a good inflicts a negative externality on Bob then the efficient solution must be where Andy doesn't consume any of that good. O When stormy weather destroys a householder's fence this is an example of a negative externality. If a homeowner pays someone to fix the pavement outside their house to improve their access, but this also improves the access of other pedestrians then this is an example of a positive externality. If a person hires a cleaner to clean their home and is then cheered up by having a clean home then this is an example of a positive externality. An individual's decision to provide a public good will create a positive externality for other members of society.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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