A) the honey producers get more honey.
B) the orchard owner frequently gets stung by the honey producer's bees.
C) the orchard owner does not have to purchase bees to pollinate his flowers.
D) the honey producers have to rent access to the orchard grounds.
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A) Each party involved holds out for a better deal.
B) The externality is large.
C) Only problems with a sufficiently large number of parties can be solved.
D) There is a lack of government intervention.
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A) private markets will under-supply college classes.
B) private markets will over-supply college classes.
C) the government should impose a tax on college students.
D) government intervention cannot improve the market for college classes.
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A) corrective taxes will provide the most efficient solution to the externality.
B) command-and-control regulation will provide the most efficient solution to the externality.
C) a private solution to the inefficiency will occur.
D) a private solution will be very difficult to negotiate.
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A) If Dick's benefit exceeds Jane's cost, government intervention is necessary.
B) Dick will pay to keep his dog if his benefit exceeds Jane's cost.
C) If Jane's cost exceeds Dick's benefit, Dick will pay Jane to keep his dog.
D) If Jane has the legal right to peace and quiet, no further transactions will be mutually beneficial.
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Efficiency taxes allow markets to coordi...View Answer
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A) Bob offers Mike $15 not to smoke his cigar.Mike accepts and does not smoke.
B) Mike pays Bob $11 so that Mike can smoke his cigar.
C) Mike pays Bob $9 so that Mike can smoke his cigar.
D) Bob offers Mike $10 not to smoke his cigar.Mike accepts and does not smoke.
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Yes,these two quantities coul...View Answer
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Yes,these two quantities coul...View Answer
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A) tax university researchers
B) offer grants to university researchers
C) eliminate subsidized student loans
D) nothing
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One solution would be to have one person...View Answer
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A) Because a clean environment is a public good, a feasible goal is to eliminate all pollution, regardless of the cost.
B) Rich countries usually have cleaner environments than poor countries because a clean environment is like other normal goods in that it has a positive income elasticity.
C) Clean water and clean air are priceless goods.
D) All of the above are correct.
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A) Automotive manufacturers prefer stricter fuel economy regulations to higher gasoline taxes.
B) Higher gasoline taxes have provided a market-based incentive for Europeans to buy more fuel-efficient vehicles.
C) Higher gasoline taxes have had no effect on the U.S.demand for gasoline because the demand for gasoline is perfectly inelastic.
D) Fuel efficiency regulations are more effective than gasoline taxes in reducing the demand for gasoline in the United States and Europe.
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A) A patent is a way for the government to encourage the production of a good with technology spillovers.
B) A tax is a way for the government to reduce the production of a good with a negative externality.
C) A tax that accurately reflects social costs produces the socially optimal outcome.
D) Government policies cannot improve upon private market outcomes.
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A) allocates pollution to those factories that face the highest cost of reducing it.
B) is a form of regulation.
C) works well for all types of externalities.
D) is inferior to regulatory policy according to most economists.
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A) is an adverse impact on a bystander.
B) causes the product in a market to be under-produced.
C) is an adverse impact on market participants.
D) is present in markets where the good or service is undesirable for society.
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A) provide firms an incentive to research.
B) assign property rights to inventors.
C) protect the rights of inventors for their lifetimes.
D) internalize externalities.
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