I. TRUE/FALSE/UNCERTAIN Answer each question and provide a concise explanation. If any word/term is underlined, give the definition. 1. [5 POINTS] T/F/U. All externalities lead to inefficient market outcomes. 2. [5 POINTS] Consider two firms [A, B], each with a fixed number of tradeable pollution permits. T/F/U. If MCB > MCA, the total cost of pollution abatement can be reduced if Firm B sells permits to Firm A. 3. [5 POINTS] Climate change experts are especially concerned about tipping points, thresholds that lead to catastrophic and irreversible damage. T/F/U. If evidence suggests we are near a tipping point, the government should impose a high carbon tax. 4. [5 POINTS] T/F/U. Highways and Cable TV are considered impure public goods for the same reason. 5. [5 POINTS] California's Prop 13 sharply lowered property tax rates in many of the state's counties. T/F/U. The fact that home prices rose immediately after the law shows that voters expected little to no change in public goods and services.
I. TRUE/FALSE/UNCERTAIN Answer each question and provide a concise explanation. If any word/term is underlined, give the definition. 1. [5 POINTS] T/F/U. All externalities lead to inefficient market outcomes. 2. [5 POINTS] Consider two firms [A, B], each with a fixed number of tradeable pollution permits. T/F/U. If MCB > MCA, the total cost of pollution abatement can be reduced if Firm B sells permits to Firm A. 3. [5 POINTS] Climate change experts are especially concerned about tipping points, thresholds that lead to catastrophic and irreversible damage. T/F/U. If evidence suggests we are near a tipping point, the government should impose a high carbon tax. 4. [5 POINTS] T/F/U. Highways and Cable TV are considered impure public goods for the same reason. 5. [5 POINTS] California's Prop 13 sharply lowered property tax rates in many of the state's counties. T/F/U. The fact that home prices rose immediately after the law shows that voters expected little to no change in public goods and services.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 5PA
Related questions
Question
![I. TRUE/FALSE/UNCERTAIN
Answer each question and provide a concise explanation. If any word/term is underlined, give the
definition.
1. [5 POINTS] T/F/U. All externalities lead to inefficient market outcomes.
2. [5 POINTS] Consider two firms [A, B], each with a fixed number of tradeable pollution permits.
T/F/U. If MCB > MCA, the total cost of pollution abatement can be reduced if Firm B sells
permits to Firm A.
3. [5 POINTS] Climate change experts are especially concerned about tipping points, thresholds that
lead to catastrophic and irreversible damage.
T/F/U. If evidence suggests we are near a tipping point, the government should impose a high
carbon tax.
4. [5 POINTS] T/F/U. Highways and Cable TV are considered impure public goods for the same
reason.
5. [5 POINTS] California's Prop 13 sharply lowered property tax rates in many of the state's
counties.
T/F/U. The fact that home prices rose immediately after the law shows that voters expected
little to no change in public goods and services.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2d3dd4f1-61da-4996-a074-37740b3f5edd%2Fc95901cd-016d-4fd3-828a-30483c01451a%2F363noe_processed.png&w=3840&q=75)
Transcribed Image Text:I. TRUE/FALSE/UNCERTAIN
Answer each question and provide a concise explanation. If any word/term is underlined, give the
definition.
1. [5 POINTS] T/F/U. All externalities lead to inefficient market outcomes.
2. [5 POINTS] Consider two firms [A, B], each with a fixed number of tradeable pollution permits.
T/F/U. If MCB > MCA, the total cost of pollution abatement can be reduced if Firm B sells
permits to Firm A.
3. [5 POINTS] Climate change experts are especially concerned about tipping points, thresholds that
lead to catastrophic and irreversible damage.
T/F/U. If evidence suggests we are near a tipping point, the government should impose a high
carbon tax.
4. [5 POINTS] T/F/U. Highways and Cable TV are considered impure public goods for the same
reason.
5. [5 POINTS] California's Prop 13 sharply lowered property tax rates in many of the state's
counties.
T/F/U. The fact that home prices rose immediately after the law shows that voters expected
little to no change in public goods and services.
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