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If the marginal consumer values timber less than the

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1.If the marginal consumer values timber less than the social cost of harvesting it, the timber market willbe characterised by a negative production externality. True or False?2.When a market is in equilibrium and the marginal consumer values a commodity at less than the socialcost of producing it, which of the following are true?(i)at market equilibrium the demand curve is below the social cost curve(ii)reducing production to a level below the equilibrium level could possibly raise total economicwellbeingA. (i) onlyB. (ii) onlyC. (i) and (ii)D. None of the above
3.The ability of individuals to arrive at a private solution to an externality is dependent on the initial
5.The government attempts to resolve negative externalities caused by automobile exhaust by:(i)taxing gasoline to reduce the amount that people drive(ii) building safer highways(iii) setting emission standards for automobiles
6.To produce honey, beekeepers place hives of bees in orchards and crop fields. As bees gather nectarthat they use to produce honey, they pollinate the orchards and fields increasing their yields of fruitand grain. This arrangement results in:

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Term
Three
Professor
N/A
Tags
producer, Externality, B Paul

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