题目内容

Suppose that a steel factory emits a certain amount of air pollution, which constitutes a negative externality. The social cost of producing the steel includes the ()

A. private costs of the steel producers and the price consumers pay for the steel.
B. private costs of the steel producers and the costs to the bystanders affected by the pollution.
C. costs to the bystanders effected by the pollution only.
D. price consumers pay for the steel.

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Which of the following statements is most correct about a market which is characterized by a negative production externality? ()

A. The equilibrium quantity of output is equal to the socially optimal quantity.
B. The equilibrium quantity of output is greater than the socially optimal quantity.
C. Government intervention is not required to achieve a socially optimal quantity of output.
D. The cost to the producer exceeds the cost to society.

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A market that experiences a positive externality will also experience a ()

A. smaller market output and a higher market price than is optimal.
B. greater market output and lower market price than is optimal.
C. greater market output and higher market price than is optimal.
D. smaller market output and lower market price than is optimal.

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According to the Coase theorem, private markets will solve externality problems and allocate resources efficiently as long as ()

A. private parties can bargain without cost.
B. government assigns property rights to the harmed party.
C. the externalities that are present are positive and not negative.
D. businesses determine an appropriate level of production.

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Assume that your roommate, Vanessa, is very messy, which is not a crime at your campus. Suppose she gets a $100 benefit from being messy but imposes a $200 cost on you. The Coase theorem would suggest that an efficient solution would be for you to ()

A. pay your roommate at least $100 but no more than $200 to clean up after herself.
B. pay your roommate at least $201 to clean up after herself.
C. charge your roommate at least $100 to have you clean up after her.
D. charge your roommate at least $200 but no more than $300 to keep you from complaining about the mess.

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Suppose that a steel factory emits a certain amount of air pollution, which constitutes a negative externality. The social cost of producing the steel includes the ()

A. private costs of the steel producers and the price consumers pay for the steel. B. private costs of the steel producers and the costs to the bystanders affected by the pollution. C. costs to the bystanders effected by the pollution only. D. price consumers pay for the steel.

Which of the following statements is most correct about a market which is characterized by a negative production externality? ()

A market that experiences a positive externality will also experience a ()

According to the Coase theorem, private markets will solve externality problems and allocate resources efficiently as long as ()

Assume that your roommate, Vanessa, is very messy, which is not a crime at your campus. Suppose she gets a $100 benefit from being messy but imposes a $200 cost on you. The Coase theorem would suggest that an efficient solution would be for you to ()

A. private costs of the steel producers and the price consumers pay for the steel.
B. private costs of the steel producers and the costs to the bystanders affected by the pollution.
C. costs to the bystanders effected by the pollution only.
D. price consumers pay for the steel.