Externalities
Quiz
•
Social Studies
•
11th Grade - University
•
Medium
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5 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Markets exhibiting negative externalities will
under produce
over produce
be optimal
none of the above
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Markets exhibiting positive externalities will
over produce
under produce
optimal
none of the above
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the market-based response by government to correct a market failure caused by a negative externality?
Pigouvian sibsidy
Quota
Pigouvian tax
All of the above
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
It is efficient to eliminate the production of a good with a negative externality.
True
False
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
According to the Coase theorem, what could prevent two parties from coming to a mutual agreement?
High market price
High transaction cost
externalities
external benefits
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