Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 10, Problem 5MCQ
To determine
To choose:
The option that correctly explains a commodity or service having positive externality.
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Students have asked these similar questions
A situation in which the Marginal Social Cost is greater than the Marginal Private Cost is
a. Positive Consumption Externality
○ b. Positive Production Externality
c. Negative Production Externality
○ d. Negative Consumption Externality
Clear my choice
A negative externality exists if
A.
there are price controls in a market.
B.
the marginal private cost of producing a good or service exceeds the social cost.
C.
there are quantity controls in a market.
D.
the marginal social cost of producing a good or service exceeds the private cost.
An externality is
Select one:
a. the uncompensated impact of one person's actions on the well-being of a bystander.
b. a market equilibrium tax.
c. the costs that parties incur in the process of agreeing and following through on a bargain.
d. the proposition that private parties can bargain without cost over the allocation of resources.
Chapter 10 Solutions
Foundations of Economics (8th Edition)
Ch. 10 - Prob. 1SPPACh. 10 - Prob. 2SPPACh. 10 - Prob. 3SPPACh. 10 - Prob. 4SPPACh. 10 - Prob. 5SPPACh. 10 - Prob. 6SPPACh. 10 - Prob. 7SPPACh. 10 - Prob. 8SPPACh. 10 - Prob. 9SPPACh. 10 - Prob. 10SPPA
Ch. 10 - Prob. 1IAPACh. 10 - Prob. 2IAPACh. 10 - Prob. 3IAPACh. 10 - Use the following information to work Problems 3...Ch. 10 - Prob. 5IAPACh. 10 - Prob. 6IAPACh. 10 - Prob. 7IAPACh. 10 - Prob. 8IAPACh. 10 - Prob. 9IAPACh. 10 - Prob. 1MCQCh. 10 - Prob. 2MCQCh. 10 - Prob. 3MCQCh. 10 - Prob. 4MCQCh. 10 - Prob. 5MCQCh. 10 - Prob. 6MCQ
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Similar questions
- A positive externality results when A. someone pays for a good or service even though she is not directly affected by the production or consumption of it. B. people who are not directly involved in producing or paying for a good or service benefit from it. C. economists are sure that a good or service provides benefits to consumers. D. people who live in one country benefit from the production of a good or service that occurs in another country.arrow_forwardWhich of these is an ideal economic situation that leads to a positive externality? a. Social costs are higher than private costs b. Private costs are equal to social costs c. Private costs are higher than social costs d. Private costs are lower than social costsarrow_forward#2. Consider a market with a negative externality. The market will tend to ________ the good because the market participants tend to ignore the ________ of their decision. a. overproduce; external benefit b. underproduce; external benefit c. overproduce; external cost d. underproduce; external cost e. overproduce; internal benefitarrow_forward
- 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.arrow_forward1. When a production externality has a beneficial effect on a bystander at the market equilibrium a. the market will be efficient b. the social cost of production is less than the private cost c. society is unlikely to benefit from production subsidies d. the private benefit from consumption is less than the social cost of production 2. In the short term, we would expect home construction to have a: a. High elasticity of demand b. Low elasticity of demand c. Low elasticity of supply d. High elasticity of supply 3. Which of the following would be associated with monetary policy operations in response to an economic downturn: a. A shift of the money demand curve to the right. b. A shift of the money supply curve to the right. c. A shift of the money demand curve to the left. d. A shift of the money supply curve to the left. 4. If the government cuts government spending, then over time the government budget deficit: a. will definitely rise b. will definitely fall c. may fall, or…arrow_forward38. Negative externalities are also called a. positive externalities. b. external benefits. c. external costs.arrow_forward
- A private good which creates no externalities is _____________________ by a free competitive market. A. Underprovided B. Overprovided C. Optimally providedarrow_forwardDetermine whether the actions below correct positive, negative externalities or neither: A. Correct neither B. Correct negative externalities C. Correct positive externalities 1. encourage activity in the market 2. Government investment in infrastructure 3. regulate the production and the externalities in the marketarrow_forwardnoint(s) possible Next question Because education generates a positive externality, A. subsidies to colleges or vouchers to students are means of achieving the efficient number of graduates O B. graduates' marginal benefit exceeds the society's value of the education C. the quantity of education undertaken will achieve the social interest if it is free D. everyone who wants a college education should get one Time Remaarrow_forward
- #1AB & #2ABarrow_forwardWhat is the concept of a negative externality in economics? A. A benefit received by individuals who did not incur the cost B. A cost incurred by individuals who did not receive the benefit C. A situation where external parties receive equal benefits and costs D. A situation where the government intervenes in the marketarrow_forwardConsider a market with a positive externality. The market will tend to.... the good because the market participants tend to ignore the.... of their decision. A. underproduce; external social benefit B. overproduce; external social benefit C. underproduce; private benefit D. overproduce; private benefit Explain why.arrow_forward
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