1A negative externality is incorporated into the supply-and-demand model as

Group of answer choices

a downward shift of the supply curve.

a downward shift of the demand curve.

an upward shift of the supply curve.

None of these answers is correct.

an upward shift of the demand curve.

2

A positive externality is incorporated into the supply-and-demand model as

Group of answer choices

an upward shift of the demand curve.

a downward shift of the demand curve.

None of these answers is correct.

an upward shift of the supply curve.

a downward shift of the supply curve.

3

Which one of the following could be a negative externality associated with the production and sale of bananas?

Group of answer choices

The cost of filtering pesticides from water runoff near banana farms

The cost of harvesting bananas

The cost of planting banana trees

The cost of acquiring land for growing bananas

The cost of transporting bananas

4

From the perspective of economic efficiency, an unregulated market outcome in the presence of a negative externality results in

Group of answer choices

a price that is too high and a quantity that is too low.

a price and quantity that are both too low.

the correct price and quantity.

a price that is too low and a quantity that is too high.

a price and quantity that are both too high.

5

Pigovian taxes are

Group of answer choices

taxes on Pigovies.

a type of tax designed to reduce or eliminate negative externalities.

None of these answers is correct.

a type of tax designed to reduce corporate profits.

taxes levied on the rich.