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Tradable pollution permits ?
The gas-guzzler tax that is placed on new vehicles that are very fuel inefficient is an example of ?
Roberto and Thomas live in a university hall of residence. Reberto values playing loud music at a value of €100. Thomas values peace and quiet at a value of €150. Which of the following statements is true about an efficient solution to this externality problem if Roberto has the right to play loud music and if there are no transaction costs ?
Which of the following is not considered a transaction cost incurred by parties in the process of contracting to eliminate a pollution externality ?
According to the Coase theorem, private parties can solve the problem of externalities if ?
When an individual buys a car in a congested urban area, it generates ?
To internalize a negative externality an appropriate public policy response would be to ?
A negative externality (that has not been internalized) causes the ?
A negative externality generates ?
Suppose an industry emits a negative externality such a pollution and the possible methods to internalize the externality are command-and-control policies, pigovian taxes, and tradable pollution permits. If economists were to rank these methods for internalizing a negative externality based on efficiency ease of implementation and the incentive for the industry to further reduce pollution in the future, they would probably rank them in the following order (from most favored to least favored) ?
When wealthy alumni provide charitable contributions to their universities to reduce the tuition payments of current students it is an example of ?
A pigovian tax on pollution ?
Which of the following is true regarding tradable pollution permits and Pigouvian taxes ?
Roberto and Thomas live in a university hall of residence Roberto values playing loud music at a value of €100. Thomas values Pease and quiet at a value of €150. Which of the following statements is true ?
To internalize a positive externality an appropriate public policy response would be to ?
The most efficient pollution control system would ensure that ?
The government engages in a technology policy ?
A positive externality (that has not been internalized) caused the ?
A positive externality generates ?

An externality is ?

A. the benefit that accrues to the buyer in a market
B. the cost that accrues to the seller in a market
C. none of these answers
D. the compensation paid to a firm’s external consultants.
E. The uncompensated impact of one person’s actions on the well-being of a bystander

Correct Answer: E. The uncompensated impact of one person’s actions on the well-being of a bystander ✔

Last Updated: June 11, 2019