Please solve these questions as soon as possible. No cursive and make sure you answer it correctly.

Answer the following True/False: (2 points each) 1._ T/F Those affected by externalities can sometimes solve the problem privately. 2. T/F According to the Coase Theorem, people can bargain to reach an agreement efficiently. 3. T/F An example of Negative consumption externalities is smoking tobacco in a confined space. 4. T/F External cost is the value of the negative impact on bystanders. 5 . T/F An example of Positive consumption externalities is education, which creates knowledge others can use. 6. T/F Introducing a tax can help address the negative externalities. 7 . T/F Negative externalities lead to inefficient production. 8. T/F Barking dog is a positive externality because neighbors enjoy his enthusiasm. Short Answers (4 Points): Grace loves playing Hip-Hop music at high volume. Cameron loves opera and doesn't like Hip- Hop. Unfortunately, they are next-door neighbors in an apartment building with paper-thin walls. a. What is the externality here? b. What policy might the landlord impose? C . Could such a policy lead to an efficient outcome