Help please

2. Pollution, market power, and externalities are all examples of: a) Market failures, the inability of some markets to allocate resources efficiently. ) Failures of capitalism. ) Arguments for trade barriers, to force international compliance. d) Unavoidable problems with the market system. 3. If a positive externality exists in a market and the market takes no action to correct for this positive externality, then the market is: a) Underallocating resources to this market. b) Encouraging producers to exit the market. c) Overallocating resources to this market. d) Encouraging producers to enter the market. 4. The Coase theorem states that: a. government should levy excise taxes on firms that generate spillover or external costs. b. taxes should be levied such that they change private behavior as little as possible. c. bargaining between private parties will remedy externality problems where property rights are clearly defined, the number of people involved are few, and bargaining costs are small. d. trading of votes to secure favorable voting outcomes may increase efficiency. 5. The tragedy of the commons is the idea that: a. society has a tendency to overuse and thus abuse common resources. b. total spillover costs in society far outweigh total spillover benefits. c. matter can be transformed to other matter or into energy but can never vanish. d. crime rates typically are higher in public places than where property is privately owned. 6. Refer to the diagram to the right in which S is the private P market supply curve and S1 is a supply curve comprising all S1 costs of production, including external costs such as harmful air pollution on a neighboring community. Without government interference, this market will result in: a. an optimal allocation of society's resources. b . an underallocation of resources to this product. C. an overallocation of resources to this product. d. a higher price than is consistent with an optimal Q allocation of resources