Private markets fail to account for externalities because

A. externalities don't occur in private markets

B. sellers include costs associated with externalities in the price of their product.

C. decision makers in the market fail to take account of the external effects of their behavior

D. the government can easily correct any adverse effect on the market that externalities may cause

A professor records the majors of her $30$ students as follows:

a. What is the measurement scale of these data?

b. Summarize the results in tabular form.

c. What information can be extracted from the data?

Assume that a hypothetical economy with an MPC of 0.9 is experiencing a severe recession.

By how much would government spending have to rise to shift the aggregate demand curve rightward by $25 billion?

Instructions: Round your answers to 2 decimal places and enter positive numbers.

The branch of economics called behavioral economics combines economics and

a. psychology.

b. history.

c. sociology.

d. accounting.

. In a market without environmental regulations, will the supply curve for a firm take into account private costs, external costs, both, or neither? Explain.

Which of the following is an example of a common resource? a. residential housing b. national defense c. restaurant meals d. fish in the ocean

True or False:

When a market experiences a positive externality, the government can internalize the externality by imposing a tax on the product.

Complete the sentence: When the government intervenes in markets with externalities, it does so in order to _____________.

What is the best way to prevent milk production?

The following tables give the capital expenditures and gross operating costs of manufacturing establishments for pollution abatement, in millions of dollars. (a) Use a calculator or spreadsheet to find the sum of the matrices containing these data. This will yield the total costs of manufacturing establishments for air, water, and solid contained waste pollution abatement for the years $2013$-$2016$. (b) Which type of pollution abatement was most expensive in $2016$?

Pollution Abatement Capital Expenditures

Pollution Abatement Gross Operating Costs

Is zero pollution possible under a marketable permits system? Why or why not?

Which of the following is TRUE of the European Union's cap-and-trade program?
A. Firms are forced to shut down when they exceed their pollution limits.
B. Firms are taxed based on their pollution levels.
C. Governments subsidize firms to develop devices to reduce pollution.
D. Firms can trade pollution permits to meet their pollution limits.

In some cases, tradable pollution permits may be better than a corrective tax because ____________.

A. selling pollution permits creates a net increase in pollution.

B. corrective taxes distort incentives.

C. corrective taxes provide greater flexibility to firms that can reduce pollution at a low cost.

D. the government can set a maximum level of pollution using permits.

Which of the following policies is not an example of a command-and-control policy?

A) Subsidies

B) Pigovian taxes

C) Tradable pollution permits

D) None of the above