1Based on the provided material, how is someone playing loud music in a dormitory before your exam categorized in economic terms?
2If SUVs produce a negative externality, what effect does taxing the buyers have on the private demand curve?
3In the presence of a positive production externality, how does the actual quantity produced compare to the socially optimal level?
4What is the formulaic relationship between Social Marginal Cost (SMC), Private Marginal Cost (PMC), and Marginal Damage (MD)?
5If a negative externality results from the sale of firewood in a competitive market, what is the relationship between marginal private cost and marginal social cost?
6When a positive externality exists for smoke detectors, what is the relationship between marginal social benefit (MSB) and marginal private benefit (MPB) received by a consumer?
7Why is the equilibrium quantity-price combination of 950 units at $102.00 per unit consistent with a negative externality if the zero-externality efficient point is 1,000 units at $100.00?
8What specific government action can improve economic efficiency when the production of a good results in positive externalities?
9If negative externalities are not internalized, how does the resulting equilibrium output relate to the most efficient output?
10In a supply and demand diagram, what type of externality is the government correcting for when it purposely shifts the market supply curve to the left (from S to S1)?
