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[Solved] Liberty University ECON 213 Quiz 7 $7.49   Add to cart

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[Solved] Liberty University ECON 213 Quiz 7

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Liberty University ECON 213 Quiz 7 · Question 1 2 out of 2 points A carbon tax would be an efficient method of addressing the problem of global warming because: · Question 2 0 out of 2 points When a negative externality is not internalized, then the equilibrium price of the good produced ...

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  • July 23, 2020
  • 5
  • 2019/2020
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Microeconomics 213 QUIZ 7


 Question 1 Question 1

2 out of 2 points


A carbon tax would be an efficient method of addressing the problem of global warming
because:

Selected Answer:
it forces firms to internalize the external cost of emissions.



 Question 1 Question 2

0 out of 2 points


When a negative externality is not internalized, then the equilibrium price of the good
produced is too __________ and the equilibrium quantity produced is too __________.

Selected Answer:
high; low



 Question 1 Question 3

2 out of 2 points


The government identifies a situation where production of a good is generating a negative
externality. A reasonable option for the government to consider is to:

Selected Answer:
impose a tax on the sale of this good.



 Question 1 Question 4

2 out of 2 points

, Microeconomics 213 QUIZ 7


The pollution emitted by your car is an example of a(n):

Selected Answer:
external cost.



 Question 1 Question 5

2 out of 2 points


If government regulation forces firms in an industry to internalize the externality, then the:

Selected Answer:
supply curve shifts to the left.



 Question 1 Question 6

2 out of 2 points


The third-party problem:

Selected
Answer: occurs when a market activity leads to a negative or a positive
externality.



 Question 1 Question 7

2 out of 2 points


Congestion charges cause the price of driving to __________. Therefore, the number of cars
on the road will __________.

Selected Answer:
rise; fall

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