Please answer the questions with explanations

1. Which of the following policy tools is inefficient even c. MSB > MPB when correctly administered? d. MPB > MSB a. environmental standards e. MSC> MPC b. emissions taxes 4. One example of a source of external benefits is c. tradable emissions permits a. technology spillover. d. Pigouvian taxes b. traffic congestion. e. cap and trade programs c. pollution. 2. An efficient Pigouvian subsidy for a good is set equal to d. subsidies for polluters. the good's e. taxes on environmental conservation. a. external cost. 5. Marginal social benefit equals marginal private b. marginal social benefit. benefit plus c. marginal external cost. a. marginal external benefit. d. marginal external benefit. b. marginal private cost. e. price at which MSC = MSB. c. total external benefit. 3. Which of the following is true in the case of a positive d. total external cost. externality? e. marginal social cost. a. MSC > MSB b. MPB > MSC2. The use of plastic water bottles creates external costs as the result of plastic production, bottle transpor- tation, litter, and waste disposal. Draw a correctly labeled graph showing how the market will determine the quantity of water bottles purchased. On the same graph, show the marginal external cost, the socially optimal quantity of water bottles, and the size of a Pigouvian tax that could be used to achieve the socially optimal quantity of water bottles. (6 points)