Answered: The problem of excess pollution mainly…

The problem of excess pollution mainly occurs because of O asymmetric information. O a negative externality. O a monopoly. O a positive externality.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 15RQ: Give an example of a positive externality and an example of a negative externality.

See similar textbooks

Related questions

Q: e the nature of t

A: An externality is a cost or benefit being caused by a producer which is not either financially…

Q: Under which of the following conditions will the private market be able to overcome the problem of…

A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…

Q: EconoTech's Wicked Widgets is currently producing more than the socially optimal level of widgets.…

A: Here, it is given that EconoTech's Wicked Widgets is manufacturing more than the socially optimal…

Q: Taxes and pollution charges O A. eliminate external costs so that firms produce the efficient…

A: Pollution charges refer to corrective taxes that are imposed on firms for polluting the environment.…

Q: Consider a market where production of the good is creating a negative externality. In the market…

A: In an economy, negative externality refers to the situation when there is an additional cost…

Q: Manufacturers use a greenhouse gas called nitrogen trifluoride to make televisions. Nitrogen…

A: Externalities are the costs or benefits of an economic transaction incurred on a third party who is…

Q: (11) Consider a market with private marginal benefit (quantity demanded) given by PMB = 400 – 4Q,…

A: Externalities are benefits or damages caused by the production(P) or consumption(c) of a good by an…

Q: irms in a polluting industry can be classified in two groups: newer firms with a cleaner technology…

A: Given : Newer Örms Lower marginal cost : M CLA L = (1/2) aL Older Örms with dirtier :M CAH = aH…

Q: Which example BEST describes tradable emissions permits? O a system of licenses that can be bought…

A: Externality refers to the economic activity that affects the third party who is not involved in the…

Q: 22.) Consider a market subject to a negative externality cause by pollution. Suppose that,…

A: Governments may adopt a quota system to try to restrict negative externalities in order to address…

Q: Consider a good with negative externalities. Relative to the outcome of an unregulated market, a…

A: D) higher; lower

Q: Under which of the following conditions do positive externalities cr? O A good is produced by a…

A: Answer: B (Benefits are received by parties other than the producer or buyers of a good)…

Q: 11. Which of these figures portrays the market failure of positive externalities (positive external…

A: Externality is the cost or benefit that the market transaction brings to the third party. It can be…

Q: Determine the type of market failure represented by the scenario below: A neighbour accepts a…

A: A negative externality exists when the production or consumption of a product results in a cost to a…

Q: Determine the type of market failure (if any) represented by the scenario below: A student reading a…

A: A market failure refers to the situation when market is not operated at the equilibrium or any of…

Q: If a person's property is generating a negative externality the person will not make socially…

A: Externality refers to spillover effect of an economic activity on society.

Q: eets when requested. Qs1 is the quantity supplied thout social costs. Qs2 is the quantity supplied…

A: A negative externality is a cost borne by a third party. For instance, the noise of a trumpet gives…

Q: There are two coal-burning electrical utilities-one in tiny. rural Wanunu, Montana, and another in…

A: Pollution permit tax is the tax levied by the government on pollution emitting units to control…

Q: In order to correct for the negative externalities associated with a firm 's production ofa product,…

A: Externality: - it is a cost or benefit generated for the third party by the actions of other people.

Q: Determine the type of market failure (if any) represented by the scenario below: A student reading a…

A: A student reading a novel in her apartment is not causing any externality to anyone ie there are no…

Q: Price and cost (thousands of dollars per student) 20 S = MC 16 12 MSB 8 MB 4 200 400 600 800 1,000…

A: The figure shows that there is an external which is represented as the difference between marginal…

Q: FIGURE 17-5 Refer to Figure 17-5. Suppose the govermment requires that each firm abate pollution to…

A: Suppose the government wants that each firm abate pollution to level Q3, then the result would be…

Q: a. What is the equilibrium quantity for the data displayed in the two tables? bag(s) b. Assume that…

A: The balance cost is the main cost where the plans of shoppers and the plans of makers concur—that…

Q: Why are externalities considered market failures? O they are economically inefficient O they are…

A: Negative externality refers to the situation where the third party who does not involve in the…

Q: With the coronavirus vaccine, your decision to get vaccinated provides not just a benefit to…

A: An externality refers to when an unrelated entity gets affected by the production or consumption…

Q: Consider a coal-fired electric-power plant that is operating under a system of tradable pollution…

A: In a market, pollution abatement cost is the expenditure incurred when a firm tries to reduce the…

Q: Public education results in which of the following? O More education than would be provided by the…

A: Public education : It implies government helps by investing in the public education. An educated…

Q: Depending on whether Brian and Edison both choose to fish either nonintensively or intensively, fill…

A: Any resource that is scarce and provides users with tangible benefits to which no person has an…

Q: Which of the following best explains why economists believe that there is an optimal amount of…

A: From a monetary perspective the socially ideal degree of contamination happens when the minimal…

Q: University researchers create a positive externality because what they discover in their research…

A: Positive externality exists when production of a commodity like this case the research benefits a…

Q: The dry-cleaning industry is a major source of air pollution. Based on this information, which…

A: The dry cleaning industry is making air pollution. Along these lines, it makes a negative…

Q: Firms in a polluting industry can be classified in two groups: newer firms with a cleaner technology…

A: The pigovian fee is an emission fee exactly equal to the aggregate marginal damage created by the…

Q: Define the concept of a negative externality and explain the nature of the negative externality in…

A: Externalities:Externalities refer to the effect or consequence of industrial activity on the third…

Q: The primary source of air pollution in the small town of Smokey, Nevada is a nearby steel mill. The…

A: An externality refers to a link among individuals that lie outside the price system of the economy.…

Q: The primary source of air pollution in the small town of Smokey, Nevada is a nearby steel mill. The…

A: Emission standards refer to the legal requirements set by the government regarding release of air…

Q: Determine the type of market failure represented by the scenario below: Developers of a new housing…

A: A public good can be defined as the good which is no rivalry non-excludable in nature. This Good is…

Q: What type of market failure would you categorize marine pollution?

A: DISCLAIMER “Since you have asked multiple question, we will solve the first question for you as per…

Q: There are three industrial firms in the county. -Firm A's initial pollution level is 50 units. Its…

A: Firms Initial Pollution Levels(units) Cost of Reducing Pollution by 1 unit A 50 $30 B 40 20 C…

Q: Which statement about externalities is wrong? O Markets are typically not efficient in dealing with…

A: Externality creates benefit or loss to third party who is not directly involved in the transaction.

Q: According to economists what is the optimal amount of pollution? O a. The optimal amount of…

A: Pollution creates negative externality to people. It puts external cost on people who are not…

Q: Question 20 Figure 2 reflects the market for outdoor concerts in a public park surrounded by…

A: Social cost includes all the cost the incurred during production and cost incurred by society.

Q: Social Cost Supply 3.00 2.80 2.07 1.50 Demand 24 30 38 50 QUANTITY (Units oftobacco) Refer to Figure…

A: In the question above, a graph is given which shows : Price of Tobacco on Y axis Quantity of…

Q: Price of a vaccination $140 Supply 110 75 D marginal social benefit D= marginal private benefit 550…

Q: Demand BA Quantity Refer to Externality graph above. Point A is the current equilibrium level of…

A: In the presence of externalities, there will be spillover cost or benefit to 3rd party who is not…

Q: How do Economists suggest our government address the market failure created by negative…

A: Meaning of Market Failure: The term market failure refers to the situation under which there…

Q: 5-5. A nation's government has determined that mass transit, such as bus lines, helps alleviate…

A: Positive externalities, or non-excludable benefits, are associated with the development of…

Q: les is set equal to the marginal arginal costs are constant (i.c., t d no externalities result from…

A: A. No there are no extra costs or gains because of excess DD( demand) for subway rides. We neglect…

Q: 7. Correcting for negative externalities - Taxes versus tradablepermits Power stations emit sutur…

A: A per-unit tax on emissions is one way the government can charge businesses for pollution rights.…

Q: When the government provides K-12 education because educated children provide an external benefit to…

A: The answer is - (Option 4) Positive Externality when the government provides K-12 education because…

Q: Figure 1 shows how Calvin carefully avoids creating a positive externality (think of this as the…

A: An Externality is defined as a cost or a benefit which is caused by a producer. It is not…

Question

The problem of excess pollution mainly occurs because of
O asymmetric information.
O a negative externality.
O a monopoly.
O a positive externality.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Table 12.12, shows the supply and demand conditions for a firm that will play trumpets on the streets when requested. QS1 is the quantity supplied without social costs. QS2 is the quantity supplied with social costs. What is the negative externality in this situation? Identify the equilibrium price and quantity when we account only for private costs, and then when we account for social costs. How does accounting for the externality affect the equilibrium price and quantity?
Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the model to show the impact of the negative externality from second-hand smoking. (Hint: In this case it is the consumers, not the sellers, who are creating the negative externality.) Label the social optimal output and price as Fe and Qe. On the graph, shade in the deadweight loss at the market output.
Consider the case of global environmental problems that spill across international borders as a prisoners dilemma of the sort studied in Monopolistic Competition and Oligopoly. Say that there are two countries, A and B. Each country can cheese whether to protect the environment, at a cost of 10, or not to protect it, at a cost of zero. If one country decides to protect the environment, there is a benefit of 16, but the benefit is divided equally between the two countries. If both countries decide to protect the environment, there is a benefit of 32, which is divided equally between the two centuries. In Table 12.10, fill in the costs, benefits, and total payoffs to the countries of the following decisions. Explain why, without some international agreement, they are likely to end up with neither country acting to protect the environment.
Refer to Table 12.2. The externality created by the refrigerator production was 100. However, once we accounted for both the private and additional external costs, the market price increased by only 50. If the external costs were 100 why did the price only increase by 50 when we accounted for all costs?
The rows in Table 12.7 show three market-oriented tools for reducing pollution. The columns of the table show three complaints about command-and-control regulation. Fill in the table by stating briefly how each market-oriented tool addresses each of the three concerns.
In the Land of Purity, there is only one form of pollution, called gunk. Table 12.14 shows possible combinations of economic output and reduction of gunk, depending on what kinds of environmental regulations you choose. Sketch a graph of a production possibility frontier with environmental quality on the horizontal axis, measured by the percentage reduction of gunk, and with the quantity of economic output on the vertical axis. Which choices display productive efficiency? How can you tell? Which choices show allocative efficiency? How can you tell? In the choice between K and L, can you say which one is better and why? In the choice between K. and N, can you say which one is better, and why? If you had to guess, which choice would you think is move likely to represent a command-and-control environmental policy and which choice is more likely to represent a market-oriented environmental policy, choice L or M? Why?
What is a pollution charge and what incentive does it provide for a firm to take external costs into account?
Give an example of a positive externality and an example of a negative externality.
Do market demand curves reflect positive externalities? Why or why not?