Chapter13Externality and Public Goods经济学英语题库.docx

Chapter13Externality and Public Goods经济学英语题库.docx

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Chapter13ExternalityandPublicGoods经济学英语题库

Chapter13ExternalityandPublicGoods

MultipleChoice

1.Marketfailureintheformofexternalitiesariseswhen（b）

a.productioncostsareincludedinthepricesofgoods.

b.notallcostsandbenefitsareincludedinthepricesofgoods.

c.thebenefitsexceedthecostsofconsuminggoods.

d.themarketfailstoachieveequilibrium.

2.Whichofthefollowingisanexampleofapositiveexternality?

（c）

a.Airpollution.

b.Apersonlittersinapublicpark.

c.Anicegardeninfrontofyourneighbor’shouse.

d.Thepollutionofastream.

3.Thesocialcostofagoodis（c）

a.itsbenefittothepeoplewhobuyandconsumeit.

b.itstotalbenefittoeveryoneinsociety.

c.itscosttoeveryoneinthesocietythatoccursinadditiontotheprivatecosts.

d.thecostpaidbythefirmthatproducesandsellsit.

4.Theprivatebenefitofconsumingagoodis（a）

a.itsbenefittothepeoplewhobuyandconsumeit.

b.itstotalbenefittoeveryoneinthesociety.’

c.itscosttoeveryoneinthesociety.

d.thecostpaidbythefirmthatproducesandsellsit.

5.Whenapersondrivesacarthatpollutestheair（c）

a.theprivatecostofconsumingthecar’sservicesexceedsthesocialcost.

b.theprivatebenefitofconsumingthecar’sservicesexceedsthesocialbenefit.

c.thesocialcostofconsumingthecar’sservicesexceedstheprivatecost.

d.thesocialbenefitofconsumingthecar’sservicesexceedstheprivatebenefits.

6.Ifaperfectlycompetitiveindustryisnotforcedtotakeaccountofanegativeexternalityitcreates,itwillproducewhere（a）

e.themarginalcostofproductionequalsthemarginalprivatebenefit.

f.themarginalcostofproductionequalsthemarginalsocialbenefit.

g.themarginalsocialcostofproductionequalsthemarginalsocialbenefit.

h.priceequalsmarginalsocialbenefit.

7.Flushotsareassociatedwithapositiveexternality.（Thosewhocomeincontactwithpeoplewhoareinoculatedarehelpedaswell.）Givenperfectcompetitionwithnogovernmentinterventioninthevaccinationmarket,whichofthefollowingholds?

（d）

a.Atthecurrentoutputlevel,themarginalsocialbenefitexceedsthemarginalprivatebenefit.

b.Thecurrentoutputlevelisinefficientlylow.

c.Aper-shotsubsidycouldturnaninefficientsituationintoanefficientone.

d.Alloftheabovehold.

8.Becausetherearepositiveexternalitiesfromhighereducation,（a）

a.privatemarketswouldprovidetoolittleofit.

b.privatemarketswouldprovidetoomuchofit.

c.thegovernmentshouldimposeataxoncollegestudents.

d.thegovernmentshouldimposeataxonstudents’families.

9.Thisdiagramrepresentsthetobaccoindustry.Whichofthefollowingwouldbeincludedinthesupply（privatecost）curve?

（a）

a.Thecostoflabor.

b.Thecosttothegovernmentofthehospitalexpensesofsmokerswithcancer.

c.Theincreasedriskofcancertothenonsmokingpassengersinthesmoker’scarpool.

d.Thepriceofapackofcigarettes.

10.Internalizinganexternalitymeans（d）

a.thegoodbecomesapublicgood.

b.governmentregulationsortaxesaresufficienttoeliminatetheexternalitycompletely.

c.governmentimposesregulationsthateliminatetheexternalitycompletely.

d.incentivesarealteredsothatpeopletakeaccountoftheexternaleffectsoftheiractions.

11.Whycan’tprivateindividualsalwaysinternalizeanexternalitywithoutthehelpofgovernment?

（b）

a.Legalrestrictionspreventsidepaymentsbetweenindividuals.

b.Transactionscostsmaybetoohigh.

c.Sidepaymentsbetweenindividualsareinefficient.

d.Sidepaymentsbetweenindividualsviolateequitystandards.

12.Whateconomicargumentsuggeststhatiftransactionscostsaresufficientlylow,theequilibriumiseconomicallyefficientregardlessofhowpropertyrightsaredistributed?

（a）

a.TheCoaseTheorem.

b.Say’sLaw.

c.TheLawofComparativeAdvantage.

d.TheLawofSupply.

13.Assumetheproductionoftheproductinthefigureimposesacostonsocietyof$7.00perunit.Ifthefreemarketequilibriumoutputis50units,thegovernmentshould（d）

a.imposeataxof$2.50perunit.

b.reducetheoutputofthefirmbyapproximately39units.

c.imposealump-sumtaxof$350perperiod.

d.imposeataxof$7.00perunit.

14.Abenefitoftaxesoverregulationtointernalizeexternalitiesis（d）

a.itiseasiertochoosetheoptimalamountoftaxesthantheoptimalamountofregulation.

b.regulationsaremoredifficulttoimposethantaxes.

c.taxesequatethesocialcostswiththesocialbenefits.

d.taxesprovideincentivestoadoptnewmethodstoreducetheexternality.

15.Ifthegovernmentwantstotaxapolluter,theeconomicallyefficientoutcomeoccurswhen（a）

a.themarginaltaxequalsthemarginalcosttootherpeoplefromthepollution.

b.theaveragetaxequalstheaveragecosttootherpeoplefromthepollution.

c.thetotaltaxequalsthetotalcosttootherpeoplefromthepollution.

d.thetaxishighenoughtostoppollutioncompletely.

16.WhichofthefollowingisNOTamethodthatcouldeffectivelydealwithnegativeexternalities?

（a）

a.Relyingonvoluntarycompliance.

b.Taxingtheoutputofindustriesthatpollute.

c.Creatinglegalenvironmentalstandards.

d.Increasingpublicspendingoncleanupandreductionofpollution.

17.Acommoncomplaintaboutenvironmentalregulationandenforcementisthatit（c）

a.appliesonlytofirmsthatproducegoods,notservices.

b.ispoliticallymotivatedandsoalwaysmisdirected.

c.canbetooburdensometoproducerswhocanpaythefinesmoreeasilythantheycanreducepollution.

d.resultsinmorepollutionthanwithouttheregulations.

18.Thebenefittoapollutiontaxoverotherformsofinternalizingapollutionexternalityisthat（c）

a.eliminatespollutioncompletely.

b.forcescleanuptooccur.

c.isimposedonlyonthemarketwiththeexternality.

d.createspositiveexternalitiestocompensatefornegativeexternalities.

19.Pollutionpermits（b）

a.imposeregulationsonfirmsthattheymustachieve.

b.setaquantityofpollutionthatwillexist.

c.cannotbetradedbetweenfirmsinordertomakesurethattheworstoffendersmustcleanuptheirproductionprocesses.

d.areefficientbecausetheyeliminateallpollution.

20.Thisdiagramshowsthemarketforpollutionwhenpermitsareissuedtofirmsandtradedinthemarketplace.Theequilibriumpriceofpollutionhereis（b）

a.$500.

b.$1000.

c.$1500.

d.$2000.

21.WhichofthefollowingisNOTacharacteristicofapublicgood?

（c）d

a.Itrequiresresourcestoproduce.

b.Itisnotdiminishedordepreciatedasadditionalpeopleconsumethegood.

c.Itsbenefitscannotbewithheldfromanyone.

d.Itisafreegoodwithzeroopportunitycost.

22.Whichofthefollowingwouldbethebestexampleofapublicgood?

（c）

a.Acandybar.

b.ApaintingbyMonet.

c.Abeautifulsunset.

d.Acrowdedbeach.

23.Toachievetheoptimalprovisionofpublicgoods（d）

a.themarketshouldbeallowedtofinditsequilibriumwithoutgovernmentintervention.

b.thegovernmentmustlimittheprovisionofthegoods.

c.thegovernmentmusttaxproducersofthesegoods.

d.thegovernmentmusteitherprovidethegoodsorsubsidizetheirproduction.

24.Publicgoodsare（d）

a.rivalandexcludable.

b.rivalbutexcludable.

c.nonrivalbutexcludable.

d.nonrivalandnonexcludable.

25.Privategoodsare（a）

a.rivalandexcludable.

b.rivalbutexcludable.

c.nonrivalbutexcludable.

d.nonrivalandnonexcludable.

26.Whoamongthefollowingisafreerider?

（d）

a.Barrystealscandyfromthestorewhereheworks.

b.Bettyregularlyusesthelocalpubliclibraryinthetowninwhichshelives.

c.Joedrives20,000milesayearonpublicstreets,buthepaysnomoreintaxesthanSam,whoonlydrives1,000miles.

d.Fredwatchesmanypublictelevisionprograms,buthehasneversentinacontributiontothestation.

27.Peoplehavelittleincentivetoproduceapublicgoodbecause（c）

a.thesocialbenefitislessthantheprivatebenefit.

b.thesocialbenefitislessthanthesocialcost.

c.thereisafree-riderproblem.

d.thereisatragedyofthecommons.

28.Thefree-riderproblem（d）

a.forcessupplyofapublicgoodtoexceeddemand.

b.allowsmorepeopletopayforthepublicgoodthanifitwereaprivategood.

c.encouragesoveruseofagoodthatisfreelyavailable.

d.holdstheequilibriumquantityofapublicgoodbelowtheeconomicallyefficientlevel.

29.Ifthemarginalcostofnationaldefenseisconstantat$12perunit,whatistheefficientlevelofnationaldefensetoprovide?

（c）

a.6units.

b.13units

c.22units.

d.33units.

30.Adrawbackofgovernmentprovisionofapublicgoodisthat（a）

a.thegovernmentlacksinformationaboutwhatpeoplearewillingtopayforthegood.

b.taxeshavetoberaisedtopayforthegood.

c.thegovernmentdoesnotprovideenoughofanypublicgood.

d.itwouldbecheaperfortheprivatesectortoprovidethegood.

31.Adrawbackofgovernmentprovisionofapublicgoodisthat（a）

a.governmentprogramsmayreflectpoliticalconsiderationsratherthaneconomicefficiency.

b.taxeshavetoberaisetopayforthegood.

c.thegovernmentdoesnotprovideenoughofanypublicgood.

d.itwouldbecheaperfortheprivatesectortoprovidethegood.

32.The“opensource”movementinthetechnologyindustrysupportstheideathatprogrammingcodeshouldbemadefreelyavailable.Thisgroupbelievethat（c）

a.thereisanegativeexternalitygeneratedbytechnologicaladvancementwhenprivatepropertyrightsareenforced.

b.thecostsofmaintainingprivatepropertyrightsaregreaterthanthebenefittosocietyofmakingadvancesfreelyavailable.

c.thecostsofmaintainingprivatepropertyrightsare