Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 30, Problem 1WNG
(a)
To determine
Graphical illustration of negative externality.
(b)
To determine
Graphical illustration of positive externality.
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Which of the following is an example of an externality?
(x) cigarette smoke that permeates an entire restaurant
(y) a flu shot that prevents a student from transmitting the virus to her roommate
(z) a beautiful flower garden outside of the local post office
Select one or more:
a. (x), (y) and (z)
b. (x) and (y) only
c. (x) and (z) only
d. (y) and (z) only
e. (y) only
How externalities and their impact the economy?
explain the negative and the positive externalities and how it affects the market.
#8. A party ends up spreading the coronavirus. Is that an externality?
a. Yes, it is a negative externality
b. Yes, it is a positive externality
c. No, it is not an externality
Chapter 30 Solutions
Economics (MindTap Course List)
Ch. 30.1 - Prob. 1STCh. 30.1 - Prob. 2STCh. 30.2 - Prob. 1STCh. 30.2 - Prob. 2STCh. 30.2 - Prob. 3STCh. 30.2 - Prob. 4STCh. 30.3 - Prob. 1STCh. 30.3 - Prob. 2STCh. 30.3 - Prob. 3STCh. 30.4 - Prob. 1ST
Ch. 30.4 - Prob. 2STCh. 30.4 - Prob. 3STCh. 30.5 - Prob. 1STCh. 30.5 - Prob. 2STCh. 30.5 - Prob. 3STCh. 30 - Prob. 1QPCh. 30 - Prob. 2QPCh. 30 - Prob. 3QPCh. 30 - Prob. 4QPCh. 30 - Prob. 5QPCh. 30 - Prob. 6QPCh. 30 - Prob. 7QPCh. 30 - Prob. 8QPCh. 30 - Prob. 9QPCh. 30 - Prob. 10QPCh. 30 - Prob. 11QPCh. 30 - Prob. 12QPCh. 30 - Economists sometimes shock noneconomists by...Ch. 30 - Prob. 14QPCh. 30 - Prob. 15QPCh. 30 - Prob. 1WNGCh. 30 - Prob. 2WNGCh. 30 - Prob. 3WNG
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- a. Which of the following situations exhibits a positive externality? __ Alan purchases a new watch as a gift for his father. __ Sean spends the afternoon cleaning his garage. __ Richard renovates a dilapidated historic home in the center of town. b. when there is a positive externality associated with the market __ too little is produced. __ too much is produced. __ the socially optimal amount is produced. c. Governments may stimulate the economy to move toward the socially optimal output by __ taxing the product __ subsidizing the product. __ implementing a price ceiling.arrow_forwardExternalities 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)?arrow_forwardGive an example of a positive externality and an example of a negative externality that exist in the economy? Share your thoughts in a paragrapharrow_forward
- What are externalities; and how the government can fix itarrow_forwardDefine social benefit.arrow_forward1. If you were to graph a measure of pollution on one axis and a level of economic activity (such as the real gross domestic product per person) on the other, what type of relationship do you think you would find? How would you explain this relationship? 2. Think of an externality that arises in a college dorm. What market can you think of that would (or could) eliminate any inefficiencies from that externality?arrow_forward
- Externalities Do you think that there would be external effects assocociated 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)?arrow_forwardWhich of the following is an example of an externality? a. a flu shot that prevents a student from transmitting the virus to her roommate. b. John smoking cigarettes affecting his own health. c. my beautiful flower garden that increases the value of my property. d. all of the above are correct.arrow_forwardQuestion 1. What is meant by "the market system?" Question 2. How is the market system justified? Question 3. What, exactly, is "fraud?" Quesetion 4. What is an "externality?" Question 5. What is "market failure?"arrow_forward
- 1. Externalities. Answer true or false, and give a brief explanation (one sentence only). a. Pollution is a negative externality. b. The regional job creation impact of opening a new hotel is an example of an externality. c. Externalities are a form of market failure only if they are negative externalities. d. When there is a positive externality, one way to improve social welfare is to subsidize the good. e. The marginal social cost includes the marginal costs of production incurred by the firms producing the good. f. If the social cost of an additional (marginal) unit is higher than the social benefit, then society would be better off if that extra unit were produced.arrow_forwardUse the graph below for the next 2 questions Price social $18 Pinternal $14 $12 Dimternal 50 70 Quantity #4. The figure best illustrates what type of market? a. The good produced creates a positive externality. b. The good produced creates a negative externality. c. The good produced is a club good. d. The good produced is a public good.arrow_forwardWhich of these activities will most likely impose an external cost? A. An athlete works out at a gym. B. A postal worker smokes a cigarette in a crowded break room. C. A young father pushes his baby in a stroller. D. A construction worker eats a hotdog during her lunch break.arrow_forward
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