A benefit that arises from the production or consumption that falls on someone other than the producer or consumer is called a positive externality. a positive benefit. a negative externality. a private good.

The externality is a type of market failure, where cost is created by one and incurred by another.…

Answered: externality

Business

Economics

externality

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section10.2: Public Policies Toward Externalities

Problem 2QQ

See similar textbooks

Related questions

Q: The market for used phones is perfectly competitive without externalities. Market demand is Q=338-2P…

A: Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: Large taxes on energy companies whose production activities cause environmental damage (assume a…

A: Answer: Negative externality: When the production or consumption of a good causes a negative impact…

Q: Efficiency in the presence of externalities

A: Efficiency cannot be achieved in the presence of externalities. Because in externalities someone is…

Q: The production of good x creates a negative externality on firms producing good y. Total costs are…

A: Given: TC (x) = x2 px = 90 c(x,y)=y2 + 20x py = 20

Q: (Positive Externalities) The value of a home depends in part on how attractive other homes and yards…

A: The value of a home depends in part on how attractive other homes and yards in the neighbourhood…

Q: Unlike mining, the growing of forests often involves positive externalities for other people…

A: Positive externalities: - positive externalities mean positive spillovers or it refers to the…

Q: The optimal level of output can be achieved by levying a tax on a company producing a negative…

A: Negative externalities are negative side effects of economic activities that are not captured by the…

Q: A law that prevents smoking on airplanes addresses a negative externality. True False

A: Externality refers to the advantages and disadvantages of being received by the third party.

Q: An externality Select one: a. all answers are correct b. arises when property rights don’t exist or…

A: An externality is the external cost or external benefit incurred or received by an individual who is…

Q: pse that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens.…

A: A non-profit organization is a gathering coordinated for purposes other than creating profit and in…

Q: An externality is Select one: a. a market equilibrium tax. b. the costs that parties incur in the…

A: Externality is one the examples of market failure.

Q: An nore pro and innovative, which leads to a better standard of living for everyone. However, when…

A: Meaning of Positive Externality: This happens when the utilization or creation of a worthwhile…

Q: Relatives and friends whom the consumer trusts are known as sources of external information.

A: Relative and friends sometimes act as a source of external information.

Q: Refer to Figure 2. This market is characterized by a positive externality. a negative externality.…

A: Externality arises whenever one economic agent's activity affects the society or any other third…

Q: Discuss negative externality its causes and possible solutions

A: Negative Externalities refers to the cost of consuming a good borne by the third party who is not…

Q: The market for used phones is perfectly competitive without externalities. Market demand is Q=271-2P…

A: Given information, Market Demand function: Q=271-2P Market Supply function: P=2Q+18 To find:…

Q: generated in a good production process, the main issue will be: a. That consumers will be…

A: Externality is a situation when the third party is affected by the production or consumption of a…

Q: 24. Which of the following statements is correct? a. externalities are pathological when they have…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: An externality can create a difference between costs/benefits and costs/benefits.

A: Externalities are the harmful or beneficial side effects arise out of production or consumption of…

Q: (Positive Externalities) The value of a home depends in part on how attractive other homes and yards…

A: Positive externality refers to the situation where the third party who does not involve in the…

Q: The following are examples of externalities except A Air pollution from the factory B Noise…

A: An externality is a cost or benefit associated with an activity enjoyed by the third person who is…

Q: ____________ includes both the private costs incurred by firms and also the (external) costs…

A: Private cost is the cost incurred by the firm on the production of goods. This cost includes the…

Q: The people of Chingola district a town in the Copperbelt province of Zambia are concerned over the…

A: Externality means spillover effect of economic activities motivated by profit or satisfaction on…

Q: Global warming is an example of a public good. the club-good problem. a problem that has an easy…

A: Global warming refers to the rise in temperatures across the globe due to the increased emission of…

Q: Consumers that take advantage of a public good without having to pay for it are known as A Tax…

A: please find the answer below.

Q: Too much of a good or service is produced when there is a O Public good Negative externality…

A: In the absence of market failures, the competitive market allocates resources efficiently and…

Q: The marginal social cost of producing a good or service is the A) cost of producing an additional…

A: The change in the total cost of production that comes from the production of one additional unit is…

Q: Public Goods are used by all members of society, but sometimes they are overused and lead to things…

A: Non-excludable: - it is a condition where a person cannot stop another person from using a good or…

Q: Provide examples of public goods or externalities that are provided successfully by market or…

A: Public goods are defined as goods that are non-rival and non-excludable in nature.

Q: type of externality

A: Curve X is the private demand curve. Curve Y is the marginal social benefit (MSB) or public demand…

Q: Explain the role of the government is trying to provide a solution when an externality is present

A: Externalities are the costs and benefits that affect a third party who actually does not choose to…

Q: Examples of transaction costs include (check all that apply): O A. the cost of the externality. B.…

A: Transaction costs are the costs associated with purchasing or selling a product or service.

Q: When it comes to externalities, the free market generally ignores any kind of private production or…

A: Externality refers to the spillover effect of a good or service on third party of the society.

Q: Suppose that cookie producers create a positive externality equal to $2 per dozen. What is the…

A: please find the answer below.

Q: When a corrective tax is created so that it equals the external costs linked to the production of a…

A: A corrective tax is an instrument used by the government to address market failure. Taxes increase…

Q: market with positive externalities will tend to _____ compared to a market producing the socially…

A: An externality is a cost incurred or benefit received by a party that is not involved in the…

Q: Differentiate between private goods, public goods, common resources, and externaliti

A: Private Goods: Private goods are those goods that are privately owned and manufactured. In the…

Q: A negative externality exists if A. there are price controls in a market. B. the marginal…

A: A negative externality is when the consumption or production of a good/service causes negative…

Q: Internalizing a negative externality results in: an increase in consumer surplus and an increase in…

A: Option B is correct

Q: in the case of negative externalities ......... exceeds......... which leads to ........ by the…

A: A negative externality is an extra cost of production that is born by a third party which is not in…

Q: A negative externality is a cost associated with an action that is not borne by the person who…

A: A negative externality is a cost that is suffered by a third party due to any production or…

Q: Match the following with: overproduced, efficiency, underproduced, deadweight lost. 1) A negative…

A: In an economy, market efficiency refers to the ability of the firms to provide optimal amount of…

Q: An externality is a private cost or benefit that results from the production or consumption of…

A: The externalities are the additional costs or benefits faced by the third party who is not involved…

Question

A benefit that arises from the production or consumption that falls on someone other than the producer or consumer is called

		a positive externality.
		a positive benefit.
		a negative externality.
		a private good.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Too much of a good or service is produced when there is a Private cost External benefit Public good Positive externality Negative externality
Identify a positive externality
Externalities represent Group of answer choices the social cost associated with the production of a good or service. the costs added by third parties to the production of a good or service in a market. the costs or benefits received by third parties from the production activities in a market.
A positive externality arises when a third party, outside the market transaction, fails to allocate resources efficiently Pays less for the good or service benefits from a market transaction pays a pollution tax to balance social costs
Give an example of a negative externality that you have witnessed or are personally aware of. Who is affected by this? What can be done to improve the situation?
Differentiate between a public good and common resources.
Having an outdoor arena that will host country music concerts a half-mile from your neighborhood would be called a positive externality if you loved country music. If you hated country music that situation would be called? A public good. A great opportunity to learn to like country music. A frictional externality. A negative externality.
draw a graph of a product without any externality
Explain the way or form of government intervention to solve the problem negative externality
What are externalities; and how the government can fix it
What are Externalities? What some strategies the Government may use to address both positive and negative externalities
Macmillan Learning Incorrect An externality is defined as: the effect of an activity undertaken outside a building rather than inside a building. an effect of market activity that impacts the opposite side of the market from the side whose decision caused the effect. a side effect of an activity that affects bystanders whose interests are not taken into account. the impact of an activity on buyers and sellers in the market where the activity takes place.