Worksheets3.1.5.4 Negative Externalities of Consumption and and 4.1.8.4
Total questions: 14
Worksheet time: 7mins
Name
Class
Date
1.
A demerit good creates...
a)
negative spillover effects.
b)
positive spillover effects
c)
no spillover effect
2.
What does D represent?
a)
MPC=MSC
b)
MPC
c)
MSC
d)
External costs
3.
What does E represent?
a)
mpb=d
b)
mpb=msb
c)
msb
d)
mpb
4.
Curve G shows...
a)
MSB
b)
MPB
c)
MPB+MSB+DEMAND
d)
MPB=Demand
5.
What does F represent (i.e. the triangle)?
a)
Welfare loss
b)
Welfare gain
c)
External cost
d)
External benefit
6.
The distance between curves F and G represents...
a)
External costs
b)
External benefits
c)
An internalised externality
7.
Fly-tipping of household waste
a)
NEC
b)
NEP
8.
Noise pollution from airline industry
a)
NEP
b)
NEC
9.
External cost of pesticides used in farming
a)
NEP
b)
NEC
10.
Passive effects of smoking
a)
NEC
b)
NEP
11.
Impact on family life of gambling and alcohol addiction
a)
NEC
b)
NEP
12.
Noise pollution from sports events
a)
NEP
b)
NEC
13.
Damage to the environment caused by industrial fishing methods
a)
NEP
b)
NEC
14.
Traffic congestion
a)
NEC
b)
NEP
100 %
