Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 10, Problem 6CQQ
To determine
Relevance of externality.
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Students have asked these similar questions
The Coase theorem does NOT apply if
a. There is a significant externality between two parties.
b. The court system vigorously enforces all contracts.
c. transaction costs make negotiating difficult.
d.both parties understand the externality fully.
An externality is
Select one:
a. the uncompensated impact of one person's actions on the well-being of a bystander.
b. a market equilibrium tax.
c. the costs that parties incur in the process of agreeing and following through on a bargain.
d. the proposition that private parties can bargain without cost over the allocation of resources.
An externality is the impact of:
a.
None of the answers is correct.
b.
one person’s actions on the well-being of another person
c.
a person’s actions on his well-being.
Chapter 10 Solutions
Essentials of Economics (MindTap Course List)
Ch. 10.1 - Prob. 1QQCh. 10.2 - Prob. 2QQCh. 10.3 - Prob. 3QQCh. 10 - Prob. 1CQQCh. 10 - Prob. 2CQQCh. 10 - Prob. 3CQQCh. 10 - Prob. 4CQQCh. 10 - Prob. 5CQQCh. 10 - Prob. 6CQQCh. 10 - Prob. 1QR
Ch. 10 - Prob. 2QRCh. 10 - Prob. 3QRCh. 10 - Prob. 4QRCh. 10 - Prob. 5QRCh. 10 - Prob. 6QRCh. 10 - Prob. 1PACh. 10 - Prob. 2PACh. 10 - Greater consumption of alcohol leads to more motor...Ch. 10 - Prob. 4PACh. 10 - The many identical residents of Whoville love...Ch. 10 - Prob. 6PACh. 10 - Prob. 7PACh. 10 - Prob. 8PACh. 10 - Prob. 9PA
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Similar questions
- An externality Select one: a. all answers are correct b. arises when property rights don’t exist or can’t be enforced. c. is a benefit or cost to parties who are not involved in a transaction. d. can be positive or negative.arrow_forwardA negative externality causes Select one: a. the social cost of production to be greater than the private cost. b. the social cost of production to be the same as the private cost. c. None of the answers are correct d. the social cost of production to be less than the private cost.arrow_forwardWhy is a price change NOT an externality? Select one: a. A price change affects bystanders, not market participants. b. A price change does NOT change total costs or benefits, it only changes who buys the good. c. A change in price changes the marginal benefit of a good but does NOT change who buys and sells the good. d. A price change redistributes costs but not benefits.arrow_forward
- An externality is Select one: a. a market equilibrium tax. b. the costs that parties incur in the process of agreeing and following through on a bargain. c. the uncompensated impact of one person's actions on the well-being of a bystander. d. the proposition that private parties can bargain without cost over the allocation of resources. Checkarrow_forwardSpillovers or externalities: a. have been legislated out of existence. b. relate to both costs and benefits. c. None of the Above d. relate to benefits only. e. relate to costs only.arrow_forwardIf people took external benefits, such as cleaner air, into consideration when deciding how much to consume of goods that cause externalities: I. they would consume less II. they would act in a way that is optimal from a societal perspective. III. the markets for these goods would generate greater surplus. Multiple Choice II and II only I,II, and II I and II only I and III onlyarrow_forward
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