Krav

EJERCICIOS TIPO TEST TEMA 6: “LAS EXTERNALIDADES Y LOS
BIENES PÚBLICOS”
1) Dry cleaning of clothing produces air pollutants. Therefore, in the market for dry
cleaning services, the equilibrium price
A) and output are too low to be optimal.
B) and output are too high to be optimal.
C) is too low to be optimal, and equilibrium quantity is too high.
D) is too high to be optimal, andequilibrium quantity is too low.
E) is optimal, but there is an excess supply.
2) The presence of pollution in the dry cleaning industry leads in the long run to
dynamic inefficiencies because
A) people will buy fewer clothes that need dry cleaning than they otherwise would
have.
B) people will develop substitutes for dry cleaning that are wasteful.
C) firms will be induced to leave the industrybecause of artificially high costs.
D) firms whose average private cost is less than price will stay in (or enter) the dry
cleaning industry even though their average social cost exceeds price.
E) firms whose average private cost exceeds the price will exit (or fail to enter) the dry
cleaning industry even though their average social cost is less than price.
3) The marginal benefit and marginalprivate cost curves for aphrodisiacs are given as
follows:
MB = 200 - Q
MPC = Q
In addition to private costs, there is a marginal external cost of $10 per unit of output.
What is the efficient level of output?
A) 0
B) 55
C) 95
D) 100
E) none of the above
4) The optimum level of pollution emissions
A) is zero.
B) occurs where the marginal external benefit is zero.
C) occurs where nodamage to the environment is being done.
D) occurs where the marginal external benefit equals the marginal external cost.
E) occurs where the marginal external cost equals the marginal cost of abatement.
5) When emissions are measured on the horizontal axis, the marginal cost of abating
emissions is
A) downward-sloping because emissions become more and more easy to eliminate once
the firmmakes the initial commitment to do so.
B) downward-sloping because a high level of emissions is cheap to attain, and a low
level of emissions is expensive to attain.
C) upward-sloping because emissions become more and more easy to eliminate once
the firm makes the initial commitment to do so.
D) upward-sloping because a high level of emissions is cheap to attain, and a low level
of emissions isexpensive to attain.
E) horizontal because the technology to remove emissions is assumed constant.

6) Under a transferable emissions permit system,
A) the firms with the lowest marginal abatement cost curves will reduce emissions
most.
B) the firms with the highest marginal abatement cost curves will reduce emissions
most.
C) the firms with the lowest marginal social cost curves willreduce emissions most.
D) the firms with the highest marginal social cost curves will reduce emissions most.
E) all firms will reduce emissions equally.
Scenario 1:
It is the factory's choice whether to install a filter. It is the choice of the nearby
fishermen whether to install a treatment plant. Dollar figures show profit. The factory
and the fishermen can negotiate costlessly, and no oneelse is affected by the result.

A:
B:
C:
D:

No filter or treatment plant
Filter; no treatment plant
No filter; treatment plant
Filter; treatment plant

Factory
$10,000
$6,000
$10,000
$6,000

Fishermen
$2,000
$10,000
$4,000
$6,000

7) Refer to Scenario 1. What should the fishermen do if they know the factory will
maximize profits and no negotiation is possible?
A) Installa treatment plant.
B) Do not install a treatment plant.
C) It makes no difference if the fishermen do or do not install a treatment plant.
D) Install a filter.
E) Exit the industry.
8) Refer to Scenario 1. It would be acceptable to both parties to have the fishermen pay
the factory
A) $0 to install a filter.
B) $500 to install a filter.
C) $4,000 to install a filter.
D) $6,000 to...