A. an excludable good.
B. a private good
C. a common resource
D. a public good.
Related Mcqs:
- 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) ?
A. Pigouvian taxes, command-and-control policies, tradable pollution permits.
B. tradable pollution permits, Pigouvian taxes, command-and-control policies
C. tradable pollution permits command-and-control policies, Pigovian taxes.
D. command-and-control policies, tradable pollution permits, Pigovian taxes.
E. They would all rank equally high because the same result can be obtained from any one of the policies - A positive externality affects market efficiency in a manner similar to a ?
A. rival good
B. public good
C. private good
D. common resource - When firms enter a monopolistically competitive market and the business-stealing externality is larger than the product-variety externality then ?
A. there are too many firms in the market and market efficiency could be increased if firms exited the market
B. the number of firms in the market is optimal and the market is efficient
C. There are too few firms in the market and market efficiency could be be increased with additional entry
D. The only way to improve efficiency in this market is for the government to regulate it like a natural monopoly. - Negative externality is also known as ?
A. external diseconomies
B. marginal damage
C. public goods
D. resource curse - The effect of a tax to offset a negative externality will be to ____ price and ______ quantity?
A. reduce , reduce
B. increase, increase
C. increase, reduce
D. reduce, increase - A negative externality generates ?
A. a social cost curve that is below the supply curve (private cost curve) for a good
B. none of these answers
C. a social cost curve that is below the supply curve (private cost curve) for a good
D. a social value curve that is above the demand curve (private value curve) for a good - A negative externality (that has not been internalized) causes the ?
A. optimal quantity to exceed the equilibrium quantity.
B. equilibrium quantity to be either above or below the optimal quantity
C. equilibrium quantity to equal the optimal quantity
D. equilibrium quantity to exceed the optimal quantity - To internalize a negative externality an appropriate public policy response would be to ?
A. have the government take over the production of the good causing the externality
B. ban the production of all goods creating negative externalities
C. tax the good
D. subsidize the good - When one firm in the breakfast cereal market started an advertising campaign that stressed the nutritional value of its cereals, all other cereal manufacturers started similar advertising campaign This suggests that the breakfast cereal market is ?
A. monopolistically competitive
B. oligopolistic
C. perfectly competitive
D. indeterminate from this information - To internalize a positive externality an appropriate public policy response would be to ?
A. ban the good creating the externality
B. tax the good
C. subsidize the good
D. have the government produce the good until the value of an additional unit is zero
