ECO 304K: INTRODUCTION TO MICROECONOMICS Unique # 33645 Fall 2009 Prof. Wiseman Answers to Practice Questions for Final 3. D 4. B 5. A 6. Negative externality: May be greater, less or equal. Positive externality: Less. 7. False – with a negative externality, fore example, a tax may increase total welfare. 8. False – government may redistribute income or correct market failures.
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This note was uploaded on 02/14/2010 for the course ECO 304K taught by Professor Hickenbottom during the Spring '10 term at University of Texas.