tailieunhanh - Câu hỏi đánh giá môn Kinh tế vĩ mô bằng tiếng Anh- Chương 18

Tham khảo tài liệu 'câu hỏi đánh giá môn kinh tế vĩ mô bằng tiếng anh- chương 18', kinh tế - quản lý, kinh tế học phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Chapter 18 Externalities and Public Goods CHAPTER 18 EXTERNALITIES AND PUBLIC GOODS QUESTIONS FOR REVIEW 1. Which of the following describes an externality and which does not Explain the difference. a. A policy of restricted coffee exports in Brazil causes the . price of coffee to rise which in turn also causes the price of tea to rise. Externalities cause market inefficiencies because the price of the good does not reflect the true social value of the good. A policy of restricting coffee exports in Brazil causes the . price of coffee to rise because supply is reduced. As the price of coffee rises consumers switch to tea thereby increasing the demand for tea and hence increasing the price of tea. These are market effects not externalities. b. An advertising blimp distracts a motorist who then hits a telephone pole. An advertising blimp is producing information by announcing the availability of some good or service. However its method of supplying this information can be distracting for some consumers especially those consumers who happen to be driving near telephone poles. The blimp is creating a negative externality that influences the drivers safety. Since the price charged by the advertising firm does not incorporate the externality of distracting drivers too much of this type of advertising is produced from the point of view of society as a whole. 278 Chapter 18 Externalities and Public Goods 2. Compare and contrast the following three mechanisms for treating pollution externalities when the costs and benefits of abatement are uncertain a an emissions fee b an emissions standard and c a system of transferable emissions permits. Since pollution creates an external cost that is not reflected in the marginal cost of production its emission creates an externality. Three policy tools can be used to reduce pollution an emissions fee an emissions standard and a system of transferable permits. The choice between a fee and a standard will depend on the marginal .