Question 2 (1 point) I A negative externality occurs when O costs are imposed on a third party. 0 benefits are received bya third party. O there are no additional costs imposed on a third party. O all costs are incurred by those buying and selling the good/service. Question 3 (1 point) I The optimal quantity of a good associated with a negative externality O is impossible to predict if it's more or less than what we expect the free market to provide. O is more than what we expect from the free market. O is less than what we expect from the free market. O is the same as what we expect from the free market. Question 4 (1 point) I External benefits cause O the private demand curve to shift up towards the social demand curve. O the social demand curve to shift up towards the private demand curve. C) the social supply curve to shift up towards the private supply curve. O the private demand curve to shift down towards the social demand curve. Question 5 (1 point} I A good is excludable if 0 one person's consumption does not reduce the amount available for others. O it's simple to prevent people from consuming it, even if they don't pay for it. Q it's hard to prevent people from consuming it. even if they don't pay for it. Q one person's consumption reduces the amount available for others. Question 6 (1 point} I All of the following are examples of positive externalities except 0 a lovely flower garden planted by your neighbor which makes you smile. O education. O research and development performed by a private company. O the benefits you receive from an insurance policy. Question 7 (1 point} _Il With common property resources, 0 the market typically fails, and the resources are easily depleted. O the market typically fails, and the resources are easily protected. because everyone owns the resources. they all have an incentive to use them wisely. O the market is likely to allocate resources efficiently. Question 8 (1 point) _II All of the following are examples of negative externalities except O poor air quality from a smokestack at a factory. water contamination caused by storm runoff from a farm using chemical fertilizers. O destruction caused by a hurricane. lower property values caused by poorly maintained houses in the neighborhood. Question 9 (1 point) I A positive externality occurs when O there are both external costs and external benefits. O there are no external costs nor external benefits. O there are external benefits. O there are external costs. Question 10 (1 point) I Free markets O never fail to produce the optimal quantity and/or price. O always fail to produce the optimal quantity and/or price. O can fail to provide the optimal quantity and/or price. O always lead to the socially optimal outcome