Which of the following is a reason why private solutions are often ineffective at remedying externalities? a. All parties want credit, but do not want to do any of the work. b. The question is decieving because they are actually quite effective. c. People are stubburn. The bargaining simply breaks down. d. Greedy businesspeople would rather pay greedy politicians taxes instead of handling the matter privately.

Which of the following is a reason why private solutions are often ineffective at remedying externalities? a. All parties want credit, but do not want to do any of the work. b. The question is decieving because they are actually quite effective. c. People are stubburn. The bargaining simply breaks down. d. Greedy businesspeople would rather pay greedy politicians taxes instead of handling the matter privately.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter17: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section: Chapter Questions

Problem 12QP

See similar textbooks

Similar questions

What is the main factor preventing a large community from influencing policy in the same way as a special interest group?
According to the Coase theorem,a. private actors can reach agreement to solve theproblem of externalities without the government.b. corrective subsidies are the best policy to solvethe problem of positive externalities.c. negative externalities are a problem for societybut positive externalities are not.d. when two private actors amicably solve theproblem of externalities, they shift the problem toa third party
Assuming no transaction costs, which legal rule best harnesses private information to deal with externalities? A. A liability rule B. A property rule C. An inalienability rule D. Criminalization
QUESTION 8 Which of the following is a corrective tax that aligns private incentives with society's interest? Oa. Pigovian Tax O b. Adjustment Tax Oc. Proper Tax Od. Coase Tax QUESTION 9 The value of a corrective tax, aimed at internalizing a negative externality, should equal a. the willingness to pay O b. the willingness to sale Oc. 10% of the polluter's monthly income Od. the amount of the external cost QUESTION 10 Which of the following types of firms are likely to respond to a corrective tax by reducing their pollution emissions? Oa. Firms with high abatement costs O b. Firms that love the environment Oc. Firms that want a boost to their public image Od. Firms with low abatement costs QUESTION 11 In a tradable pollution permits system which of the following types of firms are likely to do most of the pollution reduction? Oa. Firms with high cost of reducing pollution Ob. Firms with low cost of reducing pollution Oc. Firms that pay low wages Od. Firms that pay high wages QUESTION…
1. What is the difference between private and social costs?2. How can the government intervene to force consumers to internalize external costs associated with: a. negative externalities? b. positive externalities?3. Differentiate between public good and common resources.4. What are the advantages of a flat tax system?
1. How did Covid-19 affect businesses and the overall economy? 2. Governments and pharmaceutical companies rushed quickly ahead to develop a vaccine. Vaccinations and immunizations are examples of positive externalities. A positive externality is when an activity creates a benefit for those who are not involved in the transaction, a third party. Let’s examine the vaccination of Covid-19 as a positive externality. Question: Why is the Covid-19 vaccination considered a positive externality? 3. Market supply curve S and private demand curve Dp represent the market for vaccinations. Equilibrium is at point e, and the number of people getting the vaccination is Qe. Society would benefit, however, if more people would get the vaccination. Demand curve DS represents the marginal social benefit (MSB), which includes the private demand for vaccinations plus the external benefits that flow from it. Socially optimal enrollment would be Q1 (point f). Society would benefit the most by…
What is a market-failure rationale for the government investing in education and training programs? a. Education likelyresults in a negative externality in production, so government investment corrects for the under-provision by private, unregulated markets. b. Education likely results in a positive externality in consumption, so government investment corrects for the under-provision by private, unregulated markets. c. Education likely results in a positive externality in production, so government investment corrects for the over-provision by private, unregulated markets. d. Education likely results in a negative externality in consumption, so government investment corrects for the over-provision by private, unregulated markets.
What is a market-failure rationale for the government investing in transportation and infrastructure, for example roads, highways, bridges and tunnels? a. Government policy acts to correct for the under-provision of private goods by the private, unregulated market. b. Government policy acts to correct for the over-provision of private goods by the private, unregulated market. c. Government policy acts to correct for the over-provision of public goods by the private, unregulated market. d. Government policy acts to correct for the under-provision of public goods by the private, unregulated market.
A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld%3598281247957E 1Gmail E eAccount Quick Car.. B Calendar | Navigate Main Street Comm. 劉 Ta « CENGAGE MINDTAP Homework (Ch 10) Back to Assignment Atempts Keep the Highest/3 Tools 7. Correcting for negative externalities - Taxes versus tradablepermits Power stations emit sultur dioxide as a waste product. This generates a cost to society that is not paid for by the firm; therefore, pollution is a ps negative externality of power production. Suppose the u.S. government wants to correct this market failure by getting firms to internalize the cost of pollution. To da this, the government can charge firms for pollution rights (the right ta emit a given quandity of sulfur dioxide). The following graph ps shows the daly demand for polution rights. Lise the graph input tool to hel you answer the fallowing questions. You wit not be praded on any changes you make to this graph. Note: Once you enter a value in a white feld, the graph and any…
1. When a production externality has a harmful effect on a bystander at the market equilibrium: a. the social cost of production is lower than the private cost b. the private benefit from consumption is greater than the social cost of production c. society is likely to benefit from production taxes d. none of the above is true 2. Suppose people plant flowering trees near their homes to encourage rare native birds to feed. If people believe that ar increase in native bird populations is valuable, people who plant these trees: a. generate a negative production externality for their neighbours b. generate a positive production externality for their neighbours c. generate a negative consumption externality for their neighbours d. generate a positive consumption externality for their neighbours
Both public good;; and common resources involve b. How can the government solve the problemexternalities. caused by people like Fredo?a. Arc t~ extemalities associated with public goodsgenerally positive or negative? Usc examples in your answer. Is the froe. market quantity of public goods generally greater or Less than the efficientquantity?b. Are the externalities a.;;sociated with commonresources generall)' positive or negative? Uscexamples in your answer. Is the free·market usc ofcommon resources generally g:reatc.r or less thanthe efficient use?
1. A market with a positive externality has a A. Marginal Social Benefit curve greater than the Prive Marginal Benefit curve. B. socially optimal output level that is greater than the private market equilibrium output level. C. need for the private firms to be subsidized to produce the socially optimal output level. D. All of the Above. E. None of the Above. 2. Assume that the real interest rate is 8%. If a firm can invest in a piece of machinery that costs $8,000 today and will generate a profit stream of $3,000 at the end of each year for the next 3 years, what should the firm do? A. Invest in the machinery. B. Do not invest in the machinery.