7. Externalities

Pigovian taxes and direct controls are two government solutions for which market situation?

Negative externalities lead markets to produce:

What is a possible economic impact of the presence of a black (or shadow) economy in a country?

Which of the following is a major hindrance for a firm trying to increase profits when its activities generate negative externalities?

If the marginal cost (MC) of polluting decreases, which of the following is most likely to occur in the market for the polluting good?

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

Which of the following is an effect of foreign investment by multinationals on a host nation?

How can government regulation addressing externalities affect a producer's output decisions?

When an import tariff is enacted, which two groups are typically negatively impacted?

Other nations could make the United States trade deficit larger if they:

Which of the following is most likely to be an outcome of the digital divide in terms of social costs and benefits?

Which of the following is an example of crowding out in the context of externalities?

Which of the following is considered a positive externality beyond the control of a business?

In the context of externalities and social costs, the United States has demanded that China reduce overcapacity in which industry?

Which of the following best measures the impact of a negative supply shock in the presence of externalities?