Question : 71) The figure above illustrates the marginal private cost and : 1238656

71) The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered. It also illustrates the marginal benefit. There is no external benefit. If the city of Seattle puts on 5 concerts per year, then the marginal benefit will

A) exceed the marginal social cost.

B) equal the marginal private cost.

C) be less than the marginal social cost.

D) will equal the marginal social cost.

E) None of the above answers is correct.

72) The figure above illustrates the marginal private cost and the marginal social cost to the city of Seattle for each rock concert that is offered. It also illustrates the marginal private benefit. There is no external benefit. The efficient number of concerts in Seattle is

A) 0.

B) 5.

C) 10.

D) 20.

E) 15.

73) Legally established titles to ownership, use, and disposal of factors of production and goods and services, are called ________ rights.

A) government

B) pollution

C) property

D) inefficient

E) private

74) Legally established titles to the ownership, use, and disposal of factors of production are referred to as

A) property rights.

B) Coase rights.

C) pollution rights.

D) emission rights.

E) price-setting rights.

75) One reason why property rights help achieve an efficient level of pollution is because property rights

A) force the marginal private cost to equal the marginal social cost.

B) force the marginal social cost to zero.

C) force the marginal external cost to a lower level than marginal private cost.

D) eliminate marginal private costs.

E) change the marginal external cost so that they are equal to the marginal social benefit.

76) If a producer must pay the cost of his or her pollution because property rights have been assigned, then

A) pollution will be completely eliminated.

B) the supply curve will shift rightward as the new costs are added.

C) the supply curve will shift leftward as the new costs are added.

D) consumers will now consume more of the good because the external costs are reduced.

E) there is no longer any marginal benefit from the good or service being produced.

77) The Coase theorem states that

A) the level of pollution should be equal to zero to maximize social net benefit.

B) profit making producers pollute because they are forced to.

C) the efficient level of output is where marginal external cost equals marginal external benefit.

D) if property rights exist and transactions costs are low, private transactions are efficient.

E) the best way to limit pollution is by taxing producers who pollute.

78) The proposition that if property rights exist and are enforced, then private transactions are efficient is referred to as the

A) Coase theorem.

B) property rights theorem.

C) pollution rights theorem.

D) emission rights theorem.

E) private-market efficiency theorem.

79) The Coase theorem deals with the problem of pollution by

A) giving the government regulatory power over polluters.

B) making all polluters stop polluting.

C) establishing and enforcing private property rights.

D) having the government take over ownership of all polluting processes.

E) allowing the government to set the proper emission charge.

80) If transactions costs are low, then assigning property rights in a market with external costs

i.increases the deadweight loss.

ii.means private transactions are efficient.

iii.means that only consumers must pay the external costs.

A) i only

B) ii only

C) ii and iii

D) i and iii

E) i and ii