Question : Quantity of steel (millions of tons per week) Marginal benefit (dollars per
Quantity of steel (millions of tons per week)
Marginal benefit
(dollars per ton)
Marginal social cost (dollars per ton)
5
40
20
10
35
30
30
20
25
35
25
20
40
66) The table above shows information about the costs and benefits of a steel smelter that pollutes the air of a city. The market is efficient when the quantity of steel produced is ________ tons per week.
A) 5
B) 10
C) 15
D) 20
E) 25
67) The table above shows information about the costs and benefits of a steel smelter that pollutes the air of a city. If the marginal external cost is $10 per ton at every quantity of steel produced, the equilibrium quantity when the steel industry is unregulated is ________ tons per week.
A) 5
B) 15
C) 20
D) 25
E) 10
68) The figure above shows the costs and benefits associated with producing paper. What is the marginal external cost when output is 6 tons?
A) $1,600
B) $1,200
C) $1,000
D) $600
E) $400
69) The figure above shows the costs and benefits associated with producing paper. What is the unregulated competitive market level of output?
A) 0
B) 4 tons
C) 6 tons
D) More than 6 tons
E) None of the above answers is correct.
70) The figure above shows the costs and benefits associated with producing paper. What is the efficient level of output?
A) 0
B) 4 tons
C) 6 tons
D) More than 6 tons
E) None of the above answers is correct.
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.
