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Liberty University ECON 213 Quiz 7

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Liberty University ECON 213 Quiz 7 · Question 1 2 out of 2 points A carbon tax would be an efficient method of addressing the problem of global warming because: · Question 2 0 out of 2 points When a negative externality is not internalized, then the equilibrium price of the good produced is too __________ and the equilibrium quantity produced is too __________. · Question 3 2 out of 2 points The government identifies a situation where production of a good is generating a negative externality. A reasonable option for the government to consider is to: · Question 4 2 out of 2 points The pollution emitted by your car is an example of a(n): · Question 5 2 out of 2 points If government regulation forces firms in an industry to internalize the externality, then the: · Question 6 2 out of 2 points The third-party problem: · Question 7 2 out of 2 points Congestion charges cause the price of driving to __________. Therefore, the number of cars on the road will __________. · Question 8 0 out of 2 points Refer to the accompanying table, where Q represents the quantity produced, internal cost and external cost are given for various quantities, and P represents the price consumers are willing to pay for various quantities. The social optimum occurs where price is __________ and quantity is __________. · Question 9 2 out of 2 points The costs or benefits of a market activity that affect a third party are called: · Question 10 2 out of 2 points Driving in the city is an example of a good that is: · Question 11 2 out of 2 points Your roommate is studying to be a chef and likes to try new recipes. He leaves his delicious creations in the refrigerator for anyone who wants to eat them. The food he leaves is always gone within a day. This is an example of: · Question 12 0 out of 2 points The personal decisions of consumers and firms are based on: · Question 13 2 out of 2 points A major reason why public goods are not supplied by the market is the: · Question 14 0 out of 2 points The city decides to offer a subsidy to each homeowner’s association that plants more flowers in their common areas. In the market for flowers, this will cause the: · Question 15 2 out of 2 points The amount you pay for gasoline for your car is an example of a(n):

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