Question : 10.1   Negative Externalities: Pollution 1) Externalities A) can be either benefits or : 1241038

10.1   Negative Externalities: Pollution

1) Externalities

A) can be either benefits or costs.

B) always create extra social costs.

C) always make society better off.

D) cannot be expressed in dollar amounts.

E) are always part of private costs or private benefits.

2) A cost that arises from the production or consumption that falls on someone other than the producer or consumer is called

A) a negative benefit.

B) a public choice impact.

C) a positive externality.

D) a negative externality.

E) a private good.

3) Evidence of external costs in the production of a product is present if

A) the price of the product is higher than it should be.

B) the production cost increases because of an increase in the minimum wage.

C) non-buyers and/or non-producers of the product experience a loss for which they are not compensated.

D) buyers refuse to purchase the product.

E) producers pay all of the costs of producing the good or service.

4) An example of someone bearing the burden of a negative production externality would be

A) Taylor living downwind from a smelly feedlot where pigs are raised.

B) Jess’s roommate smokes and she doesn’t.

C) Lynna’s neighbors play loud music late at night.

D) All of these are examples of someone bearing the burden of a negative production externality.

E) None of these is an example of someone bearing the burden of a negative production externality.

5) An example of someone bearing the burden of a negative consumption externality would be

A) Taylor living downwind from a feedlot.

B) LaShawn grows beautiful roses in her garden.

C) Jess’s roommate smokes and she doesn’t.

D) All of these are examples of someone bearing the burden of a negative consumption externality.

E) None of these is an example of someone bearing the burden of a negative consumption externality.

6) To ensure all students are protected from getting the flu this year, your school offers free flu shots. What type of externality exists in this example?

A) negative consumption externality

B) positive consumption externality

C) positive production externality

D) negative production externality

E) neutral externality.

7) A example of a good with external benefits is

A) a pizza.

B) a dose of flu vaccine.

C) a sewing machine.

D) an imported good.

E) a pair of running shoes.

8) Which of the following is NOT an example of a good with an external cost?

A) electricity generation producing carbon dioxide emissions that contribute toward global warming

B) logging that pollutes a nearby river

C) Jess smoking near her non-smoking roommate

D) Ahmed working at a bank and getting a flu shot each fall

E) noise pollution from aircraft

9) Pollution is an example of a ________ externality.

A) negative production

B) positive production

C) negative consumption

D) positive consumption

E) Coasian

10) When studying pollution and the environment, economists

A) have no role to play.

B) concentrate on the physical aspects of the environment.

C) emphasize costs and benefits.

D) attempt to reduce pollution at all costs.

E) think pollution is good if it occurs when production takes place.