Feb29 - I-Clicker Questions 1) When an activity generates a...

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I-Clicker Questions 1) When an activity generates a positive externality or external benefit, marginal social benefit is greater than marginal private benefit, and the socially efficient level of output is greater than the private equilibrium level of output. 2) When an activity generates a negative externality or external cost, marginal social cost is greater than marginal private cost, and the socially efficient level of output is less than the private equilibrium level of output. 3) According to Coase Theorem, one way to internalize externalities is to create well defined and enforced property rights. 4) The incentives for maintaining a resource in good condition are greater with private property rights. The incentives for conserving a resource are greater with private property rights. 5) The socially efficient amount of pollution is the amount at which the marginal social benefit equals the marginal social cost, and the amount at which the value of the increased production of the good just offsets the harm done by the increased pollution
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This note was uploaded on 03/15/2012 for the course ECO 2023 taught by Professor Mccaleb during the Spring '08 term at FSU.

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