An externality is ?

Related Mcqs:

Which of the following is true regarding tradable pollution permits and Pigouvian taxes ?

A. All of these answers are true B. Pigouvian taxes and tradable pollution permits create an efficient market for pollution. C. Tradable pollution permits efficiently reduce pollution only if they are initially distributed to the firms that can regulator pollution at the lowest cost. D. To set the quantity of pollution with tradable pollution permits, … Which of the following is true regarding tradable pollution permits and Pigouvian taxes ?Read More...

A pigovian tax on pollution ?

A. Sets the quantity of pollution B. reduces the incentive for technological innovations to further reduce pollution C. Sets the price of pollution D. determines the demand for pollution rights....

When wealthy alumni provide charitable contributions to their universities to reduce the tuition payments of current students it is an example of ?

A. an attempt to internalize a positive externality B. an attempt to internalize a negative externality C. a Pigouvian tax D. a command-and-control policy...

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...