Rising prices for a natural resource stimulatea. the development of complements for the resource.b. the development of substitutes for the resource.c. the development of externalities from the resource.d. All of the above are correct.
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Rising prices for a natural resource stimulate
a. the development of complements for the resource.
b. the development of substitutes for the resource.
c. the development of externalities from the resource.
d. All of the above are correct.
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- Suppose that when farmers grow tomatoes, they use pesticides that leak into the ground water and cause people living near tomato farms to get sick. This is an example of a: Select one: a. negative production externality. b. positive consumption externality. c. positive production externality. d. negative consumption externality.The U.S. government controls roughly 75% of the world’s helium supply, and in 1996, it set a price floor for the helium market, which outlaws the sale of helium below $64 for 1,000 cubic feet. Suppose that the graph below illustrates the market for helium after the price floor was implemented. (c) The quantity bought in the market is __ cubic feet. (d) The quantity sold in the market is ___ cubic feet.What is the term used to describe the situation where resources are allocated in a way that maximizes total surplus? A. Pareto efficiency B. Market equilibrium C. Social welfare D. Deadweight loss
- Provide examples of externalities. Question 2 of 27 Littering while hiking is an example of a externality. A firm doing research and development which can be used by other firms is an example of a OA. negative consumption; positive production B. positive consumption; negative production C. positive production; negative consumption D. negative production; positive consumption externality.The costs or benefits of a market activity that affect a third party are called: A) externalities. B) public goods. C) common resource goods. D) artificially scarce (or club) goods.Economic Efficiency: A. Is the highest when maximum gains to trade are being achieved. B. Is a discussion surrounding the best use of economic resources. C. Is maximized when a market reaches equilibrium. D. Is measured by consumer surplus and producer surplus. E. All of the above are correct.
- Which of the following has positive consumption externalities? (a) Building a highway. (b) Getting the flu vaccine. (c) Educating your children. (d) All of the above.Please answer the following questions.1. Explain the factors affecting Demand.2. Explain the difference between positive and negative externalities alongwith an example.3. How are public goods different from private goods?4. Explain the Law of Supply.5. With regard to demand and Supply, explain the point of MarketEquilibrium.An economically efficient level of smoking: a. means people would not smoke b. occurs at the market equilibrium c. would have to account for all costs but would be greater than zero d. would have to increase to provide more jobs for farmers and tobacco workers
- Market power leads to markets that do NOT have socially optimal results. The _____ is higher and the _____ is lower than the socially optimal result in perfect competition. Select one: a. total cost; price b. output; demand c. price; output d. demand; total costWhat is true with market failure? A. the market becomes more efficient in allocating the resources to its best uses B. there is an overproduction of goods and services with positive externalities C. there is an underproduction of goods and services with negative externalities D. there is market concentration or less competition E. no correct answerIf a negative supply-side externality (also called a negative externality in production) occurs, then: a. The market provides the efficient allocation. b. The market under-provides the product, meaning the market allocation is less than the efficient allocation. c. The market does not provided the product, hence market failure occurs. d. The market over-provides the product, meaning the market allocation is more than the efficient allocation.