microchp18 - POP QUIZ WORKSHEET 4 : CHAPTER 18 NAME:_...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
POP QUIZ WORKSHEET 4 : CHAPTER 18 NAME:__________________________________ COURSE: ________________________________ 1. When negative externalities exist in the production of a good, then the: a. good is underproduced at the free market equilibrium. b. marginal social cost of producing the good equals the marginal cost borne by the firm. c. marginal cost of producing the good equals the marginal cost borne by the firm plus the marginal external cost resulting from the production of the good. d. the marginal social cost of the good is less than the price that exists in the free market. 2. If a positive externality exists from the consumption of a good: a. the marginal social benefit is equal to the marginal social cost at the free market equilibrium. b. government should tax the good. c. the marginal social benefit is greater than the market price. d. then there are undesirable social consequences associated with the good. 3.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

microchp18 - POP QUIZ WORKSHEET 4 : CHAPTER 18 NAME:_...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online