Question :
11) Which of the following actions would most likely have : 1226030
11) Which of the following actions would most likely have an external benefit?
A) eating a peanut butter sandwich
B) throwing trash out your car window as you drive to class
C) sleeping
D) attending college
E) developing a better marketing strategy for Honda
12) Which of the following is an example of an external benefit?
A) a ton of coal burned in a power plant to produce electricity
B) a car accident that crowds a major Los Angeles freeway
C) the production of a slice of pizza
D) the cleanup of a large lake
E) the consumption of a can of Mt. Dew
13) Which of the following is true?
A) MSB = MB + Marginal external benefit.
B) MB = Marginal external benefit – MSB.
C) MB = Marginal external benefit + MSC.
D) MSB = Marginal external cost – marginal external benefit.
E) MSB = MB + Marginal external benefit – Marginal external cost.
14) MSB equals
A) MC + the marginal external cost.
B) MC + the marginal external benefit.
C) MB + the marginal external cost.
D) MB + the marginal external benefit.
E) MB + MC.
15) If an external benefit is present in the consumption of a good or service, then
A) there can be no external cost.
B) the marginal social benefit is greater than the marginal private benefit.
C) the marginal social benefit is equal to the marginal private benefit.
D) the marginal private benefit is equal to the marginal social benefit plus the marginal external benefit.
E) the marginal external benefit is equal to the marginal private benefit minus the marginal social benefit.
16) If a product has an external benefit, how does its marginal private benefit compare to its marginal social benefit?
A) Marginal private benefit is less than marginal social benefit.
B) Marginal private benefit is greater than marginal social benefit.
C) At low quantities, marginal private benefit is less than marginal social benefit but at high quantities, marginal private benefit is greater than marginal social benefit.
D) At low quantities, marginal private benefit is greater than marginal social benefit but at high quantities, marginal private benefit is less than marginal social benefit.
E) Marginal private benefit cannot be compared to marginal social benefit.
17) The sum of the marginal private benefit and the marginal external benefit derived from eco-tourism in British Columbia is called the
A) total private benefit.
B) net gain.
C) total external benefit.
D) marginal social benefit.
E) total Coase benefit.
18) Suppose Julie plants a beautiful garden in her front yard. The benefits of the garden to Julie and to her neighbors equals the
A) external benefit.
B) marginal private benefit.
C) marginal external benefit.
D) marginal social benefit.
E) marginal social cost.
19) Suppose scientific research generates external benefits. Without government intervention, the market for scientific research would
A) produce the efficient amount.
B) produce more than the efficient amount.
C) produce some research, but less than the efficient amount.
D) produce zero research.
E) either produce more than or less than the efficient amount depending on whether the external benefit is on the production or consumption of the research.
20) The existence of marginal external benefits for a product like higher education creates a deadweight loss for society because, without government intervention, ________ would be consumed and ________ would be produced.
A) more than the efficient amount; more than the efficient amount
B) more than the efficient amount; less than the efficient amount
C) less than the efficient amount; more than the efficient amount
D) less than the efficient amount; less than the efficient amount
E) the efficient amount; the efficient amount
