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5. positive externalities exist
then private costs and social costs are identical
negative externalities exist
the market outcome will be inefficient
None of these Question 5 (1 point) The market for steel
In the figure above, external costs are equal to
1. P s - P p
2. Q p - Q s
3. b � c
5. d Question 6 (1 point)
When the government imposes a tax on production,
1. production will invariably increase
2. the benefits of consumption increase, so the demand curve shifts
to the right
3. both the demand and supply curves shift to the left
4. there is no change in demand or supply
5. the costs of production increase, so the supply curve shifts to the
Question 7 (1 point)
The Clean Air Act of 1972 required some companies to install the "best
available" pollution control technologies. This was an exampl...
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