Lecture+20+quiz - D. Schnelling Tax. E. Friedman Tax. Quiz:...

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Question 1: In the case of a negative production externality (such as pollution) what is the name of the curve used to determine the efficient level of production? A. Efficient marginal cost curve. B. Optimal marginal cost curve. C. True marginal cost curve. D. Social marginal cost curve. E. Aggregate marginal cost curve. Quiz: Question 2: What is the name of a tax placed on a good that generates a negative production externality? A. Bernoullian Tax. B. Pigouvian Tax. C. Marshallian Tax.
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Unformatted text preview: D. Schnelling Tax. E. Friedman Tax. Quiz: Question 3: According to Nechyba, what is the main advantage of vouchers (cap-and-trade) and pollution taxes, compared to Pigouvian taxes? A. Vouchers and pollution taxes give firms an incentive to search for pollution-abating technologies. B. Vouchers and pollution taxes require less change in government expenditure than Pigouvian taxes. C. Vouchers and pollution taxes are easier to design than Pigouvian taxes. Quiz:...
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Lecture+20+quiz - D. Schnelling Tax. E. Friedman Tax. Quiz:...

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