Chapter 20
Externalities and Public Goods
299. In the ca of a negative externality, the social marginal cost will
* a. exceed the private marginal cost.
b. be equal to private marginal cost.
c. fall short of private marginal cost.
d. bear no significant relation to private marginal cost.
300. A perfectly competitive steel mill that produces large amounts of a pollution (a negative externality) will, from a social point of view, produce
a. too little steel.
b. the socially optimal quantity of steel.
* c. too much steel.
d. too much steel only if it installs pollution control equipment.
301. Each of the following provides incentives to reduce a negative externality except
a. merger with affected firms.
* b. subsidizing consumption of the good being produced.
c. bargaining among firms.
d. taxation of the externality.
302. To reach an economically efficient output level, the size of an exci tax impod on a firm generating a negative externality should be
a. the firm’s marginal cost.
b. the social marginal cost.
* c. the difference between the social marginal cost and the firm’s marginal cost.
d. the sum of the social marginal cost and the firm’s marginal cost.
303. Which of the following “externalities” does not美国偶像第九季 distort the allocation of resources?
I. An individual’s unwillingness to cut his or her own lawn in an otherwi immaculately kept neighborhood.
aestheticism
II. Smoke produced in an area by a new firm, which rais the costs of other firms.amalgamation
III. A new firm’s bidding up skilled wages in an area, thereby raising costs for other firms.
IV. An individual’s unwillingness to obtain job training, thereby lowering the total GNP.
老师的英文Possible choices:
a. I, III, and IV
loopback
* b. III and IV
c. III only
d. IV only
304. In perfect competition, environmental externalities need not distort the allocation of resources providing
* a. transaction costs are zero.
b. average costs are constant for all output levels.
c. firms install pollution control equipment.
d. the government ts realistic pollution standards.
305. In drilling a new oil well in an existing oil field, the fact that output on existing wells is reduced means that
a. existing wells have negatively sloped MC横幅是什么意思 curves.
b. existing wells and new wells are owned by different people.
c. existing wells and new wells are owned by the same people.
* d. there is a discrepancy between private and social marginal costs.
306. Bargaining costs are generally high in cas involving environmental externalities becau
a. there are strong incentives to be a free rider.
b. many individuals may be affected by the externalities.
c. it is difficult to measure the costs of the externalities.
* d. All of the above
307. Externalities between two firms can be “internalized” if:
I. The two firms merge.
II. Bargaining costs are zero.
III. The externalities affect each firm equally.
IV. Marginal costs for both firms are constant.
Which statement(s) correctly complete the ntence?
a. Only II
b. All except III
* c. I and II, but not III and IV
d. I and IV, but not II and III
308. If bargaining is costless and an externality exists,行尸走肉漫画结局
a. an efficient outcome may be reached depending on which party is assigned property rights.
* b. an efficient outcome will be reached regardless of which party is assigned property rights.
c. an efficient outcome will not be reached without government intervention.
d. an efficient outcome can never be reached.
309. If bargaining is costless, the assignment of property rights for an externality
a. has no impact on the possibility of an efficient outcome and no distributional impact.
掉线英文
* b. has no impact on the possibility of an efficient outcome but does have a distributional impact.
tenniscourtc. does have an impact on the possibility of an efficient outcome but has no distributional impact.
d. does have an impact on the possibility of an efficient outcome and does have a distributional impact.
310. A nonexclusive good is a good
北京英语班费用a. that is sold in various markets.
* b. where it is impossible to keep people from enjoying the benefits it provides.
c. that is produced by a perfectly competitive firm.
d. that is produced at the lowest possible cost.
311. A nonrival good is a good that
a. is produced by a monopoly.
b. is produced by a cartel.
* c. can provide benefits to additional urs at a zero marginal cost.
d. is sold in a single market.
312. Left to their own, private markets tend to
* a. underallocate resources to public goods.
