Firms that emit toxins into the air tend to
a. underproduce because the private cost of production exceeds the social cost
b. overproduce because the social cost of production exceeds the private cost
c. produce the same as nonpolluting firms
d. produce at the socially optimal amount
e. cover pollution costs in the product's price
B
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The figure above shows the market for polio vaccination in Pakistan. Polio vaccination confers an external benefit because one person's vaccination makes it less likely that other people will catch polio
a. If the market is competitive and left unregulated, how many doses of vaccine will be administered? b. If the Melinda and Bill Gates Foundation underwrites the cost of the vaccine by paying for a large fraction of the preparation and delivery cost, what will happen to the number of doses administered? Why?
Total producer surplus in a market is measured as the
A) area bounded above the market clearing price and beneath the market demand curve. B) area bounded below the market clearing price and above the market supply curve. C) vertical distance from the horizontal (quantity) axis to the market clearing price. D) horizontal distance from the vertical (price) axis to the equilibrium quantity.
To which of the following regions did Prince Henry the navigator send one expedition after another?
a. Western coast of Africa b. The West Indies c. Eastern coast of India d. Western coast of North America e. Eastern coast of South America
Programs like Medicaid in the United States provide low-income households with medical care, because of the attitude of unfairness associated with the allocation of health care
a. True b. False Indicate whether the statement is true or false