A positive externality (that has not been internalized) caused the ?

Related Mcqs:

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...

Roberto and Thomas live in a university hall of residence Roberto values playing loud music at a value of €100. Thomas values Pease and quiet at a value of €150. Which of the following statements is true ?

A. It is efficient for Roberto to stop playing loud music regardless of who has the property right to the level of sound B. it is efficient for Roberto to continue to play loud music C. It is efficient for Roberto to stop playing loud music only if Thomas has the property right to peace … Roberto and Thomas live in a university hall of residence Roberto values playing loud music at a value of €100. Thomas values Pease and...

According to the Coase theorem, private parties can solve the problem of externalities if ?

A. there are no transaction costs. B. each affected party has equal power in the negotiations. C. the party affected by the externality has the initial property right to be left alone. D. There are a large number of affected parties. E. the government requires them to negotiate with each other...

Which of the following is not considered a transaction cost incurred by parties in the process of contracting to eliminate a pollution externality ?

A. costs incurred due to lawyers’ fees B. costs incurred to reduce the pollution C. costs incurred to enforce the agreement D. costs incurred due to a large number of parties affected by the externality E. All of these answers are considered transaction costs...

Roberto and Thomas live in a university hall of residence. Reberto values playing loud music at a value of €100. Thomas values peace and quiet at a value of €150. Which of the following statements is true about an efficient solution to this externality problem if Roberto has the right to play loud music and if there are no transaction costs ?

A. Thomas will pay Roberto between €100 and €150 and Roberto will continue to play loud music B. Roberto will pay Thomas €150 and Roberto will continue to play loud music C. Thomas will pay Roberto between €100 and €150 and Roberto will stop playing loud music D. Roberto will pay Thomas €100 and Roberto … Roberto and Thomas live in a university hall of residence. Reberto values playing loud music at a value of €100. Thomas values peace and...