Question 2 1 pts If there are no externalit'ies marginal social cost equals marginal private cost marginal social cost cannot be compared to marginal private cost marginal social cost is less than marginal private cost 0000 marginal social cost exceeds marginal private cost 1 Previous Next D Question 3 1 pts Mainstream economists would likely argue that activities that have signicant positive externalities O are market failures 0 are not market failures and should be left to the free market 0 do not exist 0 should be taxed D Question 4 1 pts Which is the best example of a positive externality? O You throw up on a roller coaster O You post explanations to classmates in the HW discussion thread O You buy a vintage t-shirt at a thrift shop and then sell it online for double the price O You buy a healthy tomato at a farmers marketD Question 5 1 pts One argument against regulating the pollutants that cause acid rain was that it would make things more expensive for consumers and jobs might be lost. The best economic counter-argument is Yes - so it is better to ask people and firms to do the right thing so we avoid this negative effect O Yes, but it is best for society to adjust and face up to the full costs of our actions O These taxes will not cost jobs because they will not be sufficient enough to cause such an impact These taxes will not raise prices because they will be paid for by producersQuestion 6 1 pts According to the video, normal rain has a pH of 5.4 while rain that has interacted with Nitrogen and SO2 has a ph O as high as 9.6 O as high as 7 as low as 3.7 O as low as 4.8D Question 7 1 pts According to the video, which was not cited as a potential source of acid rain O Refineries O Lightning strikes O Volcanic eruptions O Power plants O Crop burningD Question 8 1 pts The 2020 Navigable Water Protection Act (discussed in module video) O excluded ephemeral, intermittent and isolated wetlands from Federal Protection O ensures that the cost of cleaning up pollution in all waterways will be borne by the polluter O set tax policy for effluent flowing into all US navigable rivers O created Federal Protection for ephemeral, intermittent and isolated wetlands O set cap and trade parameters for effluent flowing into all US navigable riversQuestion 9 1 pts A negative externality is taxed efficiently, the likely outcome is O the tax revenues will equal the total cost of production O the activity will be eliminated completely O all producers will reduce activity be equal amounts O the activity will be reduced to the point where the MSB = MSCQuestion 10 1 pts Given the negative externality reected in the above graph, what can we say about the price - output combination that we would get in a free [no govt intervention) market? Supporting Materials P uscsummec O The free market would result in P1, Q1 which is optimal from societies perspective. 0 The free market would result in P1, Q1 which is not optimal from sociees' perspective. 0 The free market would result in P2, Q2 which is optimal from societies' perspective. 0 The free market would result in P2, Q2 which is not optimal from sociees' perspective. Question 11 1 pts Given the negative externality reflected in the above graph, a per unit pollution tax that results in the optimal output level for society would raise how much in tax revenue? Supporting Materials O The area b+c+f. O The area b+c+d. No tax is needed as the free market results in the optimal outcome. O The area b+c+d+f+g.Question 12 1 pts Assume there are 1000 homes in a flood zone in an area in which sea levels are rising. An additional 1000 homes are above the flood zone and at less risk. A levee could be built to prevent the rise in sea level from affecting the homes. It is worth $20,000 per home in the flood zone to have the levee built. It is worth $5,000 per home not in the flood zone to have the levee built. The levee costs $22,000,000 to build. Which of these makes the most economic sense? O The government should leave this to the free market. O The free market will have some difficulty building the levee because the levee is non-rival. However it is excludable. So there is only a partial argument for government intervention here . O The free market will have difficulty building the levee because the levee is non-rival and non-excludable. However the benefits do not exceed the costs anyway so there is no need for the government to intervene. O The free market will have difficulty building the levee because the levee is non-rival and non-excludable. So the government may have to intervene and force homeowners to pay through taxes to fund the levee as the benefits exceed the costs.Question 13 1 pts A sprinkler system inside of one house does not protect houses on the other side of town. It also requires the homeowner to purchase and install it prior to benefiting from it. Once installed it can help stop fires from jumping to neighboring homes. Given this information we can argue: O There may be justification for government intervention to encourage consumption of indoor sprinkler systems due to their public good nature of being non-rival and non-excludable. O There is no justification for government intervention to encourage consumption of indoor sprinkler systems as there is no market failure. O There may be justification for government intervention to encourage consumption of indoor sprinkler systems due both to positive externalities and that they are public goods. There may be justification for government intervention to encourage consumption of indoor sprinkler systems due to positive externalities.Question 14 1 pts If the government provides every citizen with free coffee then it follows that in economic terms: O coffee is a semi-public good as it is rival but non-excludable O coffee is a public good as it is nonrival and nonexcludable O coffee is a semi-public as it is nonrival but excludable O coffee is a private good as it is rival and excludable