7. Externalities

Economic sanctions against foreign governments sometimes create externalities because:

Which of the following is an example of a negative externality that can adversely affect a firm's operations?

In the context of externalities, how did monopolies and trusts in the late 1800s impact the social costs and benefits within industry and banking?

Oligopolists can often benefit from which of the following, which means cooperation with rivals?

Which of the following is evidence of a negative externality in production?

The difference between social cost and private cost is a measure of the:

Which of the following activities is most likely to create a positive externality?

When analyzing externalities, how can changes in the prices of complements or substitutes for a product affect its social benefits and social costs?

Which of the following activities results in a positive externality?

A negative externality or spillover cost occurs when:

Why would setting the prices of natural resources at their true social cost likely increase recycling rates?

An optimal tax on pollution would result in which of the following?

Which of the following would most likely constitute a negative externality affecting free resources?

Which of the following statements is true about the effects of externalities on social benefits and social costs?

Which of the following statements is NOT true of both pollution permits and corrective taxes?