Externalities

What type of externality is pictured?

• Positive consumption

• Negative consumption

• Private production

• Negative production

Which point represents the socially optimal price and quantity?

• J

• K

• M

• O

What would resolve this externality?

• Tax

• Pigouvian tax

• Corrective tax

• Subsidy

Deadweight loss is calculated as the area of triangle

• JLM

• JMO

• IJK

The price of the tax needed to correct this externality is best indicated by the line

• ML

• OJ

A good where one person's use of it detracts from others' benefits is

• rivalrous

• non-rivalrous

• excludable

• non-excludable

Fisheries are an example of a

• public good

• private good

• club good

• common resource

TV streaming services are an example of a

• public good

• private good

• club good

• common resource

Market goods are an example of a

• public good

• private good

• club good

• common resource

Timber forests are an example of a

• public good

• private good

• club good

• common resource