quiz3eco405 - Question 1 4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost which of the following

quiz3eco405 - Question 1 4 out of 4 points When the...

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Question 1 4 out of 4 points When the marginal private cost of an activity does not equal the marginal social cost, which of the following exists? Selected Answer: Externality in production Correct Answer: Externality in production Question 2 4 out of 4 points Requiring automobiles to pass emissions tests before being allowed on the road is an example of a(n) Selected Answer: Direct pollution control Correct Answer: Direct pollution control Question 3 4 out of 4 points For a tax on pollution to be effective, it must be Selected Answer: Greater than the cost of cleaning-up the pollution Correct Answer: Greater than the cost of cleaning-up the pollution Question 4 4 out of 4 points When pollution is not regulated in the market, polluting firms will Selected Answer: Over-utilize resources and charge low prices Correct Answer: Over-utilize resources and charge low prices Question 5 4 out of 4 points
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Which of the following creates a positive externality in consumption? Selected Answer: Vaccinatio ns Correct Answer: Vaccinatio ns Question 6 4 out of 4 points An advantage of direct regulation as a method of controlling pollution is that Selected Answer: It seems straightforward and fair Correct Answer: It seems straightforward and fair Question 7 4 out of 4 points If a pollution tax is placed on a firm emitting pollution, the firm will pay the tax, rather than reduce its emissions, as long as the tax is Selected Answer: Below its MPC of pollution control Correct Answer: Below its MPC of pollution control Question 8 4 out of 4 points The market output level tends to be socially optimal when Selected Answer: All costs and benefits are private and MSB=MSC Correct Answer:
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  • Spring '11
  • CamilleCastorina
  • Economics, assault, Externality, Arson

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