The presence of negative externalities leads to a misallocation of societal resources because a. whenever external costs

Question:

The presence of negative externalities leads to a misallocation of societal resources because

a. whenever external costs are imposed on outside parties, the good should not be produced at all.

b. less of the good than is ideal for society is produced.

c. some costs are associated with production that the producer fails to take into consideration.

d. the government always intervenes in markets when negative externalities are present, and the government is inherently inefficient.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Exploring Microeconomics

ISBN: 9781544339443

8th Edition

Authors: Robert L. Sexton

See More Books

Question Posted: May 19, 2024 03:01 AM

See More Questions

Multiple Choice Questions 1. The presence of negative externalities leads to a misallocation of societal resources because a. Whenever external costs are imposed on outside parties, the good should...
Noncompliance with the prescribed medication regimen (e.g., lithium) is a frequent complicating factor in the treatment of bipolar disorder. 1. What are the main reasons that patients with this...
Multiple Choice Questions: 1. The true extent of a negative externality may be difficult to measure because a. Firms often keep poor records of their cash outlays. b. Of the intricacies of accounting...
A feature of most autumns in the northeastern United States is a period of mild, sunny weather called Indian summer, which occurs when an anticyclone happens to stall for a few days off the East...
What thermodynamic consideration prevents ion pairs from contributing significantly to protein stability?
1- Distinguish between vulnerability, threat and control 2- Theft usually results in some kind of harm. For example, if someone steals your car, you may suffer financial loss, inconvenience (by...
Tell whether the normal balance of each account in SE 3 is a debit or a credit. Transaction Analysis
The Jay Company has had a defined benefit pension plan for several years. At the beginning of 2007 the company amended the plan; this amendment provided for increased benefits to employees based on...
find X for all of these SE LAW OF COSINES WORKSHEET NAME Brooklyn Skintara Solve for x in each triangle. Round to the nearest whole number. 1. 2. LY 17m 39mm 47mm 42 22m 35mm 4. 3. X 13cm 23m 9.4cr...
A tax equal to the external cost on firms that emit pollutants would a. provide firms with the incentive to increase the level of activity creating the pollution. b. provide firms with the incentive...
How are positive externalities internalized?
Use the data in the steam tables to plot the vaporliquid dome on a Pv diagram. It is useful to plot v on a log scale. TABLE B.1 Saturated Water: Temperature Table T , C m/kg 0.01 5 10 15 20 25 30 35...
What are the mechanisms of organelle biogenesis and turnover in eukaryotic cells, including protein targeting, import, and sorting pathways, autophagy, and mitochondrial dynamics, and how are these...
Stepping_Stone5_Recipe mySecondRecipe = new Stepping_Stone5_Recipe("Pizza", 2,recipeIngredient, 300); // Initialize first recipe String IngredientNameTwo = "Noddles"; Ingredient tempIngredientTwo...
In November of 2022, Bruno, a cash basis CPA, contracted to perform an audit for $2,000 and to prepare the corporate tax return for $1,000. The contract called for payment on Jan.31, 2023. The client...
ft It is planned to run 10,000 ft of 9-5/8" casing string (nominal weight=47) in a 12-1/4" hole filled with 10 ppg drilling mud. The weight of the block and tackle is 40,000 lbf and the rig is...
Fixed cost $ 8 0 , 0 0 0 ; Variable cost $ 2 per unit; Selling price $ 1 0 per unit. Required: Turnover for a profit target of $ 6 0 , 0 0 0 .
Refer to the data for Advanced Products Corporation in Exercise 814. Required: 1. Using Exhibit 8A1 as a guide, prepare a report showing the first-stage allocations of overhead costs to the activity...
d. The characteristic equation of a control system is given by s+2s+8s+12s+20s+16+16=0. Determine the number of the roots of the equation which lie on the imaginary axis of s-plane
Cost Allocation at Nike Values: Item Amount Total Overhead $5,000,000 Machine Hours 100,000 Labor Hours 80,000 Requirements: Allocate the overhead costs using machine hours. Allocate the overhead...
The following transactions apply to Jova Company for Year 1 , the first year of operation: 1 . Issued $ 1 5 , 0 0 0 of common stock for cash. 2 . Recognized $ 7 0 . 0 0 0 of service revenue earned on...
Apple Inc. is manufacturing custom-built laptops. The company incurred direct materials costs of $2,000,000 and direct labor costs of $1,500,000 for a specific laptop order. The predetermined...

The presence of negative externalities leads to a misallocation of societal resources because a. whenever external costs

Question:

Step by Step Answer:

Exploring Microeconomics

Students also viewed these Business questions