Chapter 10 - Examining Externalities

1. 1Externalities *

   1. Acan be either benefits or costs.
   2. Balways create extra social costs.
   3. Calways make society better off.
   4. Dcannot be expressed in dollar amounts.
   5. Eare always part of private costs or private benefits.
2. 2For a product with an external cost, the supply curve *

   1. Arepresents the various quantities people can buy.
   2. Bis the same as the marginal private cost curve.
   3. Cis the same as the marginal social cost curve.
   4. Dis the same as the marginal external cost curve.
   5. Eis undefined.
3. 3 For a firm, its labor costs are *

   1. Aa marginal benefit.
   2. Ba private cost.
   3. Can external cost.
   4. DBoth answers A and C are correct.
   5. EBoth answers A and B are correct.
4. 4A marginal external cost of a product is equal to

   1. Awhat the producer has to pay to hire resources to produce another unit.
   2. Bthe cost someone other than the producer incurs when another unit is produced.
   3. Cthe cost the producer incurs to produce another unit.
   4. Dwhat the consumer must pay when he or she buys the good or service.
   5. ENone of these answers describes a marginal external cost.
5. 5Which of the following equations is correct?

   1. AMC = MSC + marginal external cost
   2. BMSC = MC ÷ marginal external cost
   3. CMSC = MC + marginal external cost
   4. DMSC = MC × marginal external cost
   5. EMC = marginal external cost - MSC
6. 6 If the marginal social cost of generating a kilowatt of electricity is $0.10 and the marginal private cost is $0.08, what is the marginal external cost?

   1. A$0.18
   2. B$0.10
   3. C$0.08
   4. D$0.02
   5. E$0.80
7. 7When a person receives a flu vaccination, the ________ is the additional benefit the person receives from getting the shot.

   1. Amarginal private benefit
   2. Bmarginal external benefit
   3. Cmarginal social benefit
   4. Dmarginal social cost
   5. Emarginal external cost
8. 8If the marginal private benefit of attending college for Shelly is $40,000 and the marginal external benefit is $15,000, she will attend college if the cost of attendance is no more than

   1. A$55,000.
   2. B$45,000
   3. C$40,000
   4. D$25,000
   5. E$15,000
9. 9If a government action is designed to achieve efficiency, then the action must have the market produce the amount of output so that the

   1. Amarginal private cost equals the marginal private benefit.
   2. Bmarginal social cost equals the marginal social benefit.
   3. Cmarginal external cost equals the marginal external benefit.
   4. Dmarginal private cost equals the tax.
   5. Emarginal social benefit exceeds the marginal social cost by as much as possible.
10. 10If all education in the United States were provided by private, tuition-charging schools,

    1. Atoo much education would be consumed.
    2. Btoo little education would be consumed.
    3. Cthe efficient level of education would be provided.
    4. Dthe government would provide both students and schools with vouchers.
    5. Eeducation would no longer have an external benefit.

11. 11A good or service with a positive externality is one which (Choose 2)

    1. Aeveryone wants to have access to.
    2. Bis produced in the social interest.
    3. Cthe marginal social benefit exceeds the marginal private benefit.
    4. Dthere will be overproduction of the good.
    5. Ethere will be underproduction of the good.

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Business/Economics Quiz am Chapter 10 - Examining Externalities, erstellt von Kristen Moore am 06/04/2017.

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Kristen Moore

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English

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ch 10business/economics

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