Transcript Which of the following actions is most likely to result in

ENVR 210
CLICKER QUESTIONS
Chapter 10 (Mankiw) – Aplia Review
Transaction costs
1.
2.
3.
4.
can keep private parties from solving
externality problems.
are eliminated when the government
intervenes in a market with externalities.
are incurred in the production process due to
externalities.
increase when taxes are imposed to correct
negative externalities.
25%
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25%
2.
25%
3.
25%
4.
Which of the following statements is not correct?
1.
2.
3.
4.
Corrective taxes can be used to place a price
on the right to pollute.
Corrective taxes require the government to
set a target level of pollution.
Corrective taxes allocate pollution to those
producers who face the highest cost of
reducing pollution.
Corrective taxes provide incentives to
develop cleaner technologies.
25%
1.
25%
2.
25%
3.
25%
4.
Suppose the government imposes a tax in a certain market
in order to internalize an externality. This type of policy is
based on which of the Ten Principles of Economics?
1.
2.
3.
4.
People face trade-offs.
The cost of something is what
you give up to get it.
People respond to incentives.
Markets are usually a good
way to organize economic
activity.
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25%
4.