Question 1 (1 point) _I: When does an externality occur? 0 when only the people making the demand and supply decisions share the benets or the costs of an activity 0 when the private costs of production are ignored 0 when the private costs of production equal the full social costs associated with production of a good 0 when people other than those making the demand and supply decisions share the benets or the costs of an activity Question 2 (1 point) _I: Which of the following is the best example of a public good? 0 telephone service 0 an amusement park 0 city street lights 0 a national system of healthcare Question 3 (1 point) I: When does a freerider problem arise? 0 whenever the government provides goods or services 0 whenever the price of a good is very low 0 whenever goods cease to be scarce 0 whenever goods CANNOT be provided exclusively to those who pay for them Question 4 (1 point) _I: What is the name of the principle that suggests that when property rights are well dened, externalities will be internalized? O Coase theorem 0 The Environment Canada Act 0 The Cap and Trade System 0 An Inconvenient Truth Question 5 (1 point) _I: Natalie loves to get up early and get busy in the morning. Her roommate, Alana, likes to sleep in every morning. When Natalie gets up she likes to hum, sing, and clean up the kitchen, rattling pots and pans. Which of the following statements best describes Natalie? 0 She is a great and thoughtful roommate. 0 She is inicting a negative extemality on Alana. 0 She is providing Alana with a positive extemality. 0 She is demonstrating the fallacy of composition. Question 6 (1 point) I: Someone who does NOT contribute toward covering the cost of a good he desires, and yet CANNOT be excluded from receiving the good, is called a free rider. Question 7 (1 point) _I: Which of the following is an example of a public good? 0 electricity generated by a city-owned public utility O a cityowned bus 0 national defence O telephone service Question 8 (1 point) _I:I How are public goods characterized? 0 They exclude nonpayers. 0 They are nonrivalrous in consumption. 0 They have exclusive property rights. 0 They are rivalrous in consumption. Question 9 (1 point) n) Listen a Positive externalities lead to an underallocation of resources relative to the amount that is socially desirable. Question 10 (1 point) n) Listen u A u shot is an example of a negative externality