https://youtu.be/CpVf11f09Pk

QUESTION 1

1. Which of the following statements are true about the use of antibiotics?
2. Users get all the benefits,but don't pay all of the costs.
3. The use of antibiotics causesbacterial resistance, and these resistant bacteria pollute the environment.
4. Antibiotic users ignore the external costs oftheir choices.
5. All of the above.

1 points

QUESTION 2

1. A cost paid by bystanders,by people other than the consumer or producer.
2. Private Cost
3. External Cost
4. Social Cost
5. Externalities

1 points

QUESTION 3

1. External costs or external benefits,costs or benefits that fall on bystanders.
2. Private Cost
3. External Cost
4. Social Cost
5. Externalities

1 points

QUESTION 4

1. The cost to everyone, the private cost plus the external cost.
2. Private Cost
3. External Cost
4. Social Cost
5. Externalities

1 points

QUESTION 5

1. The cost paid by the consumer or the producer.
2. Private Cost
3. External Cost
4. Social Cost
5. Externalities

1 points

QUESTION 6

1. When there are significant external costs or benefits, the market maximizes social surplus.
2. True
3. False

1 points

QUESTION 7

1. If external costs are included, the supply curves shifts downward.
2. True
3. False

1 points

QUESTION 8

1. When there are negative externalities,the market quantity is greater than the efficient quantity.
2. True
3. False

1 points

QUESTION 9

1. When there are negative externalities,the social cost is greater than the private value.
2. True
3. False

1 points

QUESTION 10

1. A____________________________________________tax is a tax on a good with external costs.

1 points

QUESTION 11

1. In order to reach the efficient equilibrium,how much should a Pigouviantax be?
2. More than the cost of the externality.
3. Equal to the cost of the externality.
4. Less than the cost of the externality.
5. None of the above.

1 points

QUESTION 12

1. The price you pay for an iTunes download
2. private costs
3. external costs
4. private benefits
5. external benefits

1 points

QUESTION 13

1. The benefit your neighbor receives from hearing you play your pleasant music
2. private costs
3. external costs
4. private benefits
5. external benefits

1 points

QUESTION 14

1. The annoyance of your neighbor because she doesn't like your achingly conventional music
2. private costs
3. external costs
4. private benefits
5. external benefits

1 points

QUESTION 15

1. The pleasure you receive from listening to your iTunes download
2. private costs
3. external costs
4. private benefits
5. external benefits

1 points

QUESTION 16

1. The price you pay for a security system for your home
2. private costs
3. external costs
4. private benefits
5. external benefits

1 points

QUESTION 17

2. The safety you enjoy as a result of having the security system
3. private costs
4. external costs
5. private benefits
6. external benefits

1 points

QUESTION 18

1. The crime that is more likely to occur to your neighbor once a criminal sees a "Protected by alarm" sticker on your window.
2. private costs
3. external costs
4. private benefits
5. external benefits

1 points

QUESTION 19

1. The extra safety your neighbor might experience because criminals tend to stay away from neighborhoods that have a lot of burglar alarms
2. private costs
3. external costs
4. private benefits
5. external benefits

1 points

QUESTION 20

1. Cultural influences often create externalities, for good and ill. A happy movie might make people smile more, which improves the lives of people who don't see the movie. A new fashion trend for tight-fitting clothing might hurt the body image of people who think they won't look good in the new trendy clothing. Let's consider the market for one cultural good that unrealistically raises expectations about the opposite sex: the romance novel. In romance novels, men are dangerous yet safe, wealthy yet never at work, they ride high-speed motorcycles yet never get in terrible accidents, they look fantastic even though they never waste endless hours at the gym, and so on. (Of course, advertising that focuses on sexy female models may also unrealistically raise expectations about the opposite sex so feel free to change our example as you see best.) Romance novels impose an external cost on men, who have to try to live up to these unrealistic expectations. Suppose the government taxed the romance novel to reduce the externality. How should the government spend the money?
2. Efficiently.
3. Subsidizing programs encouraging male self-esteem.
4. Subsidizing books including male protagonists who are overweight and seriously flawed.
5. B & C

1 points

QUESTION 21

1. When we tax goods with external costs, this always creates
2. a price ceiling.
3. deadweight loss.
4. a price floor.
5. None of the above.

1 points

QUESTION 22

1. Which of the following jobs is attempting to correct for an externality?
2. tarot card reader
3. homeowner association
4. stock trader
5. ombudsman

https://youtu.be/1G-_HL9ZE24

QUESTION 1

1. Why is it that when there are external benefits,the quantity produced is less than desired?
2. All the costs are paid by the individual,but theyreceiveonly some ofthe benefits.
3. The individual receives all of the benefits, but pays only part of the costs.
4. The individual receives all of the benefits, and pays all of the costs.
5. None of the above.

1 points

QUESTION 2

1. In the supply and demand graph depicting external benefits.whatdoes the original demand curve represent?
2. Private cost
3. Private value
4. Social costs
5. Social value

1 points

QUESTION 3

1. When there are external benefits, the private value is greater than the social value.
2. True
3. False

1 points

QUESTION 4

1. When there are external benefits, the socially efficient equilibrium quantity is greater than the market equilibrium quantity.
2. True
3. False

1 points

QUESTION 5

1. What creates the deadweightloss when there are external benefits?
2. There are units produced that cost more than they are valued.
3. There are units that are not produced that cost more than they are valued.
4. There are units produced that are valued more than they cost.
5. There are units that are not produced that are valued more than they cost.

1 points

QUESTION 6

1. To correct a market withexternalities,policymakersshould:
2. Use a Pigouviantax less than the amount of the external benefit.
3. Use a Pigouviansubsidy greater than the amount of the external benefit.
4. Use a Pigouviansubsidy exactly equal to the the amount of the external benefit.
5. Use a Pigouviantax exactly equal to the amount of the external cost.

1 points

QUESTION 7

1. Providing a subsidy when external benefits are present increases demand.
2. True
3. False

1 points

QUESTION 8

1. A Pigouviansubsidy internalizes the external benefit.
2. True
3. False

1 points

QUESTION 9

1. Which action would likely reduce the undersupply of people who get flu shots?
2. Pay people to get a flu shot
3. Publicly recognize people for getting a flu shot
4. Offer the flu shot in more locations
5. All of the above.

1 points

QUESTION 10

1. For the following six questions, determine whether there is an external benefit or cost and estimate its size. Finally, decide between a tax or a subsidy as a simple way to compensate for the externality. Scenario 1: In the market for automobiles, the private benefit of one more small SUV is $20,000 and the social cost of one more small SUV is $30,000. Is this an external cost or an external benefit?
2. External cost
3. External benefit
4. Neither

1 points

QUESTION 11

1. What is the size of the externality?
2. -30,000
3. -10,000
4. 30,000
5. 10,000

1 points

QUESTION 12

1. Would a tax or a subsidy be more appropriate for this externality?
2. Subsidy
3. Tax
4. Neither

1 points

QUESTION 13

1. Scenario 2: In the market for really good ideas, ideas that will dramatically change the world for the better, the private benefit of one more good idea is $1M. The marginal social benefit is $100M. Is this an external cost or an external benefit?
2. External benefit
3. External cost
4. Neither

1 points

QUESTION 14

1. What is the size of the externality?
2. -100,000,000
3. -99,000,000
4. 100,000,000
5. 99,000,000

1 points

QUESTION 15

1. Would a tax or a subsidy be more appropriate for this externality?
2. tax
3. subsidy
4. neither

1 points

QUESTION 16

1. Economists have found that increasing the proportion of girls in primary and secondary school leads to significant improvement in students' cognitive outcomes (Victor Lavy and Analia Schlosser. 2007. "Mechanisms and Impacts of Gender Peer Effects at School," NBER Working Paper 13292). One key channel seems to be that on average boys create more trouble in class, which makes it harder for everyone to learn. In newspaper English, we'd say that "boys are a tax on every child's education." Do girls in a classroom provide external costs or benefits?
2. External costs
3. External benefits
4. Neither