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USU-Intro To MacroEcon - Assignment 11

USU-Intro To MacroEcon - Assignment 11 - Assignment 11...

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Assignment 11 Question 1 (1 point) Which of the following is an example of a negative externality? 1. Your roommate plays the tuba at 3 a.m. the night before your economics exam 2. Electricity generation from coal-fired plants causes acid rain 3. Your neighbor's dog barks incessantly 4. You drive your car and emit carbon monoxide 5. All of these Question 2 (1 point) An externality occurs when 1. the full costs of the good are not included in the price of the good 2. the full benefits of a good are not included in the price of the good 3. costs or benefits accrue to individuals not directly involved in the transaction 4. All of these 5. None of these Question 3 (1 point) Which of the following is an example of a positive externality? 1. A flu shot 2. The smoke from a steel factory 3. Litter 4. A traffic jam 5. The noise of your neighbor's leaf blower Question 4 (1 point) When all costs of a transaction are borne by the participants of that transaction, 1. positive externalities exist 2. then private costs and social costs are identical 3. negative externalities exist 4. the market outcome will be inefficient 5. None of these Question 5 (1 point)
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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 4. a 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 left Question 7 (1 point) The Clean Air Act of 1972 required some companies to install the "best available" pollution control technologies. This was an example of 1. the government using a subsidy to encourage a negative externality 2. a marketable pollution permit 3. the government using the command approach to discourage a negative externality 4. a pollution tax 5. the government using the command approach to encourage a positive externality
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