ENVR 210
CLICKER QUESTIONS
Chapter 10 (Mankiw) – Clicker Question Set #2
Markets are often inefficient when negative
externalities are present because
1.
2.
3.
4.
private costs exceed social costs at
the private market solution.
externalities cannot be corrected
without government regulation.
social costs exceed private costs at
the private market solution.
production externalities lead to
consumption externalities.
50%
33%
17%
0%
1.
2.
3.
4.
Which of the following would not be considered a
negative externality?
1.
2.
3.
4.
Smelter, Inc. creates steel and
pollution.
Your friend buys a new puppy that
barks every night.
You have an adverse reaction to a
medication your doctor prescribed
for you.
None of the above.
50%
29%
14%
7%
1.
2.
3.
4.
The difference between a corrective tax and a
tradable pollution permit is that
1.
2.
3.
4.
a corrective tax sets the price of
pollution and a permit sets the
quantity of pollution.
a corrective tax creates a more
efficient outcome than a permit.
a corrective tax sets the quantity of
pollution and a permit sets the price
of pollution.
a permit creates a more efficient
outcome than a corrective tax.
71%
21%
7%
0%
1.
2.
3.
4.