Question : 21) A marginal external cost of a product equal to A) : 1238651

21) A marginal external cost of a product is equal to

A) what the producer has to pay to hire resources to produce another unit.

B) the cost someone other than the producer incurs when another unit is produced.

C) the cost the producer incurs to produce another unit.

D) what the consumer must pay when he or she buys the good or service.

E) None of these answers describes a marginal external cost.

22) A loud band plays a concert late at night in a neighborhood park. The noise produced by the band that keeps the neighbors not attending the concert awake is

A) only a private cost.

B) only an external cost.

C) both a private cost and an external cost.

D) neither a private cost nor an external cost.

E) a private benefit because the neighbors get to hear the band.

23) Which of the following is an example of an external cost?

A) taxes

B) the price of a car wash

C) pollution

D) an electricity bill

E) paying a wage that exceeds the minimum wage

24) A firm dumps dioxin in a river, thereby severely polluting the river. The cost of the water pollution is

i.zero for the firm.

ii.an external cost.

iii.part of the marginal social cost

A) i only

B) ii only

C) iii only

D) ii and iii

E) i, ii, and iii

25) When logging in the Pacific Northwest destroys forests that hikers would have used for eco-tourism, the destruction of the trails is an example of

A) an external cost.

B) a private cost.

C) a government cost.

D) an external benefit.

E) None of the above answers is correct.

26) Which of the following is an example of an external cost?

A) a grove of trees planted in a park in Seattle

B) a library built in Philadelphia

C) a new, faster computer chip

D) an oil spill off the coast of South America

E) a student graduating from college

27) Jacob pays $5,000 to paint his house because pollution from a nearby factory damaged the paint. To the factory, the $5,000 cost is

A) a private cost and not an external cost.

B) an external cost and not a private cost.

C) both a private cost and an external cost.

D) neither a private cost nor an external cost.

E) a private benefit because viewers will benefit from watching the extra hour of the show.

28) A landfill site produces an obnoxious odor. Homes downwind of the site rent for $1000 per month while homes upwind of the site rent for $1500 per month. If the odor is the only detectable difference between two neighborhoods, the difference in the rent is the ________ of the odor.

A) social cost

B) external cost

C) private cost

D) marginal cost-benefit

E) private benefit

29) Suppose two neighborhoods (A and B) have identical housing, but neighborhood A has a strictly enforced deed restriction that prohibits homeowners from parking junk cars in the front yard. If houses in neighborhood A sell for $105,000 and houses in neighborhood B sell for $100,000, how would an economist value the external cost of visible junk cars, per house?

A) $205,000

B) $105,000

C) $100,000

D) $5,000

E) None of the above answers is correct.

30) Suppose two neighborhoods with 10 homes each in Buffalo, New York are identical except one of them is near a toxic waste dump. If homes near the dump sell for an average of $40,000 and the other homes sell for $90,000, the external cost of the dump is

A) $400,000.

B) $1,300,000.

C) $900,000.

D) $500,000.

E) $90,000.