Principles of Economics (12th Edition)
12th Edition
ISBN: 9780134078779
Author: Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher: PEARSON
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Question
Chapter 16, Problem 1.3P
To determine
Externalities associated with the urban sprawl and on whom the externalities are imposed.
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Students have asked these similar questions
Externalities
Do you think that there would be external effects associated with Water from a uranium mine leaking into Kakadu National Park? If so, what would be the nature of the external effects? Can you think of policies that might deal with each external effect (that is, improve social wellbeing)?
Explain the concept of externalities; include an example, as well as how the government takes action to correct it.
Which one or ones of the following is/are an example (or examples) of positive externality?
I. A shoe factory manufactures shoes at a river coast without restriction and local residents
become ill due to polluted water.
II. An architect designs a house for herself to live in lonely.
III. A company pays lots of money for research and development and general level of
knowledge within society increases along with new production techniques to manufacture
cheaper and quality goods.
IV. An apartment manager puts a disinfectant against Covid19 at entrance for residents and
Cargo workers also use it. *
Only IV
I and II
None of them
O , Il and IV
All of them
O IIl and IV
I and II
Il and III
O I,l and II
Il and IV
O I, Ill and IV
Chapter 16 Solutions
Principles of Economics (12th Edition)
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Similar questions
- Possible methods for avoiding the externalities in a free-market economy?arrow_forwardIn what ways do company investments in research and development create positive externalities?arrow_forwardThe farmer takes the rancher to court and the judge decides putting up a fence is the farmer’s responsibility. What is the nature of the externality in this problem?arrow_forward
- What are the causes and consequences of externalities in economic activities? How can governments intervene to address negative externalities and promote positive externalities?arrow_forwardThe following scenarios are examples of externalities. Which is an example of a negative externality? Group of answer choices The local library decides to expand and in addition to the building structure creates a plaza with benches and three different types of fountains. A town adds recycling options for residents to be collected the same day as the trash. Electronic billboards were added in town advertising businesses. The digital advertisements are very, very bright and at night they shine over the city disturbing people’s sleep.arrow_forwardWhat is an externality? What are the possible remedies (private or government) to externalities?arrow_forward
- Which of the following is associated with a positive externality? Traffic congestion Taxes Eating a pint of ice cream Getting a flu shotarrow_forwardWhat is an externality? How do they affect market efficiency? If an externality is present, where is the socially optimal point of production? Where will the market produce if there is no government intervention? How do we get from the private market equilibrium to the socially optimal one?arrow_forwardmake a graph that shows the marginal cost (MC), marginal revenue (MR), and marginal social benefit (MSB) curves, with and without internalization of the externality. The shaded area represents the profit.arrow_forward
- How do property rights affect externalities and market failure? Do goods and services by definition have to be considered a property right? Are there any examples in which that may not be the case?arrow_forwardwhy do externalities make market outcomes inefficient?arrow_forwardWhat is an externality? Provide an example.arrow_forward
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