From the perspective of an externality, most communities have A control external

Question

From the perspective of an externality, most communities have A control external benefits. law, control external costs. encourage positive externalities raise government revenues. which one of the following government actions is intended to generate positive exernakitites a Taxing polluting industries B Speed limits on the highways Requiring autos to meet minimum emissions regulations subsidies for planting trees on hillsides 7 if an activity generates a positive externality, the government can increase total economir surplus by activity, and if an activity generates a negative externality,he government can increase total economic surplus by the activity. A. taxing; banning B. subsidizing; banning D. 8 The optimal quantity of a negative externality Is zero if: it imposes a high enough cost on sodety it Is costly for people to negotiate with each other. C the majority of voters decide to eliminate the externality. the marginal cost of reducing the externality is zero. 9. if the demand curve reflects consumers' full willingness to pay, and the supply curve reflects aV costs of production, then which of the following Is true?

Explanation / Answer

5. Control external costs

Zoning laws limit commercial use of land in order to prevent oil, manufacturing or other types of businesses from building in residential neighborhoods.

   

6. Subsidies for planting trees on hillsides

When some of the benefit of an activity is received by people not participating in the activity, it is called positive externality.

7. C. subsidizing taxes

Through subsidizing taxes the government can boost total economic surplus.

Rest of the answers are correct.

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