University:
Bradley University
Course:
ECO 199 | Foundational Topics in Economics
Academic year:

2023
Views:

491

Pages:

1
Author:

gewoekerdodx

True/False – Identify if the following statements are true (T) or false (F). 1. Externalities only occur when the government intervenes in a market. False 2. A positive externality results in benefits for third parties not involved in a transaction. True 3. Negative externalities cause the market to produce less than the socially optimal quantity. False 4. Legal regulations are never used to address externalities because they are too expensive. False 5. Landscaping is an example of a service with a positive consumption externality. True 6. Taxes are commonly used by governments to address positive externalities. False 7. Public goods are both rival and non-excludable. False 8. Common property resources tend to be overused due to a lack of enforceable property rights. True 9. Fireworks displays often lead to the free-rider problem. True 10. The tragedy of the commons occurs when private goods are sold at unfair prices. 11. Club goods are non-rival and excludable. False True 12. Public goods are typically well-supplied by private markets due to strong consumer demand. False 13. Subsidies can be used to increase production of goods with positive externalities. True 14. Governments fund public goods through voluntary donations. False 15. Clean air is considered a public good because it is rival and excludable. Answers: False