简答题Melissa engages in an activity that influences the well-being of a bystander. In order for Melissa’s activity to give rise to an externality, it must be the case that ( ). A、Melissa fails to recognize the impact of her activity on the bystander’s wellbeing B、the bystander fails to recognize the impact of Melissa’s activity on his or her wellbeing C、the wellbeing of the bystander is adversely impacted by Melissa’s activity D、Melissa neither pays nor receives any compensation for her activity简答题Refer to Figure 10-11. Taking into account private value and external benefits, the maximum total surplus that can be achieved in this market is ( ). A、9,480 C、15,360简答题According to the Coase theorem, if private parties can bargain without cost, then the private market will solve the problem of externalities.简答题The supply curve for a product reflects the ( ). A、willingness to pay of the marginal buyer B、quantity buyers will ultimately purchase of the product C、cost to sellers of producing the product D、seller's profit from producing the product简答题According to the Coase Theorem, individuals can always work out a mutually beneficial agreement to solve the problems of externalities even when high transaction costs are involved.简答题Assuming transaction costs are small, the Coase theorem would predict that private parties could arrive at an efficient solution for which of the following problems? A、One neighbor doesn’t mow his lawn B、One neighbor doesn't paint her house C、One neighbor comes home on his noisy motorcycle late at night D、All of the above are correct.简答题The least expensive way to clean up the environment is for all firms to reduce pollution by an equal percentage.简答题A cost imposed on someone who is neither the consumer nor the producer is called a ( ). A、corrective tax B、command and control policy C、positive externality D、negative externality简答题Private markets fail to account for externalities because ( ). A、externalities don't occur in private markets B、sellers include costs associated with externalities in the price of their product C、decisionmakers in the market fail to include the costs of their behavior to third parties D、the government cannot easily estimate the optimal quantity of pollution简答题University researchers create a positive externality because what they discover in their research labs can easily be learned by others who haven't contributed to the research costs. If there are no subsidies, what is the relationship between the equilibrium quantity of university research and the optimal quantity of university research produced? A、They are equal. B、The equilibrium quantity is greater than the socially optimal quantity. C、The equilibrium quantity is less than the socially optimal quantity. D、There is not enough information to answer the question.简答题If an aluminum manufacturer does not bear the entire cost of the smoke it emits, it will ( ). A、emit a lower level of smoke than is socially efficient B、emit a higher level of smoke than is socially efficient C、emit an acceptable level of smoke D、not emit any smoke in an attempt to avoid paying the entire cost简答题Which of the following is not correct? A、Markets allocate scarce resources with the forces of supply and demand. B、The equilibrium of supply and demand is typically an efficient allocation of resources. C、Governments can sometimes improve market outcomes. D、Externalities cannot be positive.简答题A positive externality arises when a person engages in an activity that has ( ). A、an adverse effect on a bystander who is not compensated by the person who causes the effect B、an adverse effect on a bystander who is compensated by the person who causes the effect C、a beneficial effect on a bystander who pays the person who causes the effect D、a beneficial effect on a bystander who does not pay the person who causes the effect简答题When firms internalize a negative externality, the market supply curve shifts to the left.简答题The difference between social cost and private cost is a measure of the ( ). A、loss in profit to the seller as the result of a negative externality B、cost of an externality C、cost reduction when the negative externality is eliminated D、cost incurred by the government when it intervenes in the market简答题Internalizing a positive externality will cause the demand curve to ( ). A、shift to the right B、shift to the left C、become more elastic D、remain unchanged简答题Research into new technologies provides a ( ). A、negative externality, and too few resources are devoted to research as a result B、negative externality, and too many resources are devoted to research as a result C、positive externality, and too few resources are devoted to research as a result D、positive externality, and too many resources are devoted to research as a result简答题Refer to Figure 10-1. This graph represents the tobacco industry. The socially optimal price and quantity are ( ). A、1.80 and 35 units, respectively C、1.35 and 58 units, respectively简答题Refer to Figure 10-11. Which of the following statements is correct? A、The private value of the 420th unit of output is 42. C、The external benefit of the 420th unit of output is $27. D、All of the above are correct.简答题The best remedy for market failure is often ( ). A、a market-based solution. B、shutdown of the market. C、no government intervention. D、externalizing the externalities.