Quiz 4 - Name Class Date ID A Practice Quiz 4(Chapters 10-11 Multiple Choice Identify the letter of the choice that best completes the statement or

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 Practice Quiz 4 (Chapters 10-11) Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. In the article “The Case for Taxing Carbon,” the author Gregory Mankiw propose a way to deal with global climate change. Which of the following statements is not his stance? a. Enhancing fuel efficiency by itself is not the best way to reduce energy consumption, because merely having more efficient cars encourage more driving. b. A carbon tax would provide incentives for people to use less fuel in a multitude of ways. c. A cap-and-trade system may effectively limit carbon emissions if the caron allowances are well allocated. d. Overall, the cap-and-trade system is better than the carbon tax. ____ 2. In the article “The Bloomberg Plan: Don’t drive, He said” the mayor of New York City, Michael Bloomberg, proposed congestion pricing. Which of the following statements is not correct one? a. Some people are against congestion pricing because they believe that the middle class will be able to pay the fees but the poor won’t, which is somewhat unfair. b. The supporters for the congestion pricing may argue that the rich is more likely to pay the fees because the poor usually don’t drive in and out of Manhattan due to the cost of buying, insuring, and parking a car in such a zone. c. Mayor Bloomberg proposed that the mony rasied by congestion pricing will be used for improving subway and bus service, which will make New Yourk City much “greener.” d. The New York City is the first city to plan to try congestion pricing in the world. ____ 3. In a market economy, government intervention a. will always improve market outcomes. b. reduces efficiency in the presence of externalities. c. may improve market outcomes in the presence of externalities. d. is necessary to control individual greed. ____ 4. The commercial value of ivory is a threat to the elephant, but the commercial value of beef is a guardian of the cow. This is because a. the cow is raised in developed countries, while the elephant lives primarily in less-developed countries. b. cows are private goods, while elephants tend to roam freely without owners. c. cows and elephants are public goods, but ivory is nonrival. d. ivory is nonrival and nonexclusive, but beef is rival and exclusive. ____ 5. Which of the following is an example of a positive externality? a. A college student buys a new car when she graduates. b. The mayor of a small town plants flowers in the city park. c. Local high school teachers have pizza delivered every Friday for lunch. d. An avid fisherman buys new fishing gear for his next fishing trip.
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Name: ________________________ ID: A 2 ____ 6. Suppose that flu shots create a positive externality equal to $12 per shot. What is the relationship between the equilibrium quantity and the socially optimal quantity of flu shots produced? a.
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This note was uploaded on 01/25/2012 for the course ECON 2106 taught by Professor Minjaesong during the Fall '06 term at Georgia Institute of Technology.

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Quiz 4 - Name Class Date ID A Practice Quiz 4(Chapters 10-11 Multiple Choice Identify the letter of the choice that best completes the statement or

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