If positive externalities exist for a good: Question 3 options: the private mark
ID: 1194560 • Letter: I
Question
If positive externalities exist for a good:
Question 3 options:
the private market produces too much of the good.
the private market produces too little of the good.
the private market produces the efficient quantity of the good.
taxes on firms are imposed to decrease production of the good.
The area under the demand curve but above the equilibrium price is called:
Question 11 options:
consumer surplus.
producer surplus.
accounting profit.
economic profit.
Elinor Ostrum has identified rules that are required for sustainable user-managed common property resources. Which of the following would not be included in that set of rules?
Question 12 options:
Adequate conflict resolution measures must exist.
Sanctions must be graduated.
Government must designate one person as the proprietor.
Governance must be democratic.
Global climate change is:
Question 13 options:
essentially a huge global negative externality.
probably the smallest of all market failures.
a positive externality.
of little concern today among scientists.
The study of coal, tin, and natural parks all fall within the discipline of:
Question 14 options:
the economics of natural phenomena.
natural history economics.
environmental economics.
market failure.
Which of the following would contribute most to the destruction of the Amazon rainforest?
Question 15 options:
farm subsidies in the United States
demand for exotic wood products
low labor costs in tropical locations
low demand for complimentary products
It has been suggested that a way to save endangered species is to give hunting rights to people who live in their vicinity. The idea behind this suggestion is that:
Question 16 options:
human rights are different from animal rights.
by giving people rights to profit from the animals, they have an incentive to ensure their survival.
the animals will be killed anyway, so social benefit is extracted from them before they disappear.
market solutions are morally superior to government solutions.
Which of the following is not a condition for the use of the Coase theorem?
Question 17 options:
The costs of negotiation are negligible.
Thousands of people are involved.
Property rights necessary for negotiation are established.
The number of parties involved is small.
Which of the following items is not an example of a negative externality?
Question 18 options:
pollution
education
unrestrained development
overpopulation
In a court case in 2008, heard by the Supreme Court regarding older power plants and how best to protect fish and aquatic organisms, Justice David Souter remarked, “The difficulty that I have is if you are going to apply . . . a cost-benefit analysis, I'm not sure how it would work. Are a thousand plankton worth a million dollars?” Justice Souter's question points out the difficulty of:
Question 19 options:
measuring the appropriate discount rate for public projects.
the nonrival characteristic of public goods.
measuring nonmarket or intangible aspects of public projects.
the nonexclusive characteristic of public goods.
Some of the steps involved in _____ are: specify the set of alternative projects; catalogue the impacts and select measurement indicators; discount benefits and costs to obtain present values.
Question 20 options:
sensitivity analysis
production analysis
cost-benefit analysis
None of the answers provided is correct.
Because of the nonexclusive characteristic of public goods, the ______________ problem develops and the ________________ must provide public goods.
Question 21 options:
free rider; private market
free rider; government
externality; government
externality; private market
Explanation / Answer
Q.3. If positive externalities exist for a good:
Ans: taxes on firms are imposed to decrease production of the good.
Q.11. The area under the demand curve but above the equilibrium price is called
Ans: consumer surplus.
Q.12. Elinor Ostrum has identified rules that are required for sustainable user-managed common property resources. Which of the following would not be included in that set of rules?
Ans: Government must designate one person as the proprietor.
Q.13. Global climate change is:
Ans: essentially a huge global negative externality.
Q.14. he study of coal, tin, and natural parks all fall within the discipline of:
Ans: environmental economics.
Q.15. Which of the following would contribute most to the destruction of the Amazon rainforest?
Ans: demand for exotic wood products.
Q.16. It has been suggested that a way to save endangered species is to give hunting rights to people who live in their vicinity. The idea behind this suggestion is that:
Ans: by giving people rights to profit from the animals, they have an incentive to ensure their survival.
Q.17. Which of the following is not a condition for the use of the Coase theorem?
Ans: The number of parties involved is small.
Q.18. Which of the following items is not an example of a negative externality?
Ans: education.
Q.19. Justice Souter's question points out the difficulty of:
Ans: measuring nonmarket or intangible aspects of public projects.
Q.20. Some of the steps involved in _____ are:
Ans: cost-benefit analysis.
Q.21. Because of the nonexclusive characteristic of public goods, the ______________ problem develops and the ________________ must provide public goods.
Ans: free rider; government
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