AP Microeconomics Negative Externalities — practice questions
18 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice AP Microeconomics Negative Externalities in the app →The effect of a market exchange on a third party outside the exchange is called an:Because they affect parties beyond those involved, externalities are sometimes called:Loud music you hate wafting into your house every night is given as an example of a:Music you love reaching you free every night is given as an example of a:Economists commonly refer to externalities as an example of:A tax imposed on the quantity of pollution that a firm emits is a:Social costs are described as the private costs of production plus:Firms may fail to take social costs like pollution into their planning if they do not have to:Requiring a firm to pay 100 dollars for external pollution costs per refrigerator makes the supply curve:The supply curve that accounts for the additional external costs is labelled:Taking external pollution costs into account results in a price that is:Taking external pollution costs into account results in a quantity of production that is:Laws specifying allowable pollution quantities and required control technologies fall under:Which three categories are named as the market-oriented approaches to pollution control?Permits are described as marketable, which means that firms can:Externalities count as market failure because markets consider social costs that are:Comparing the private and social supply curves, the social curve for a polluting firm lies:A pollution charge differs from command-and-control regulation because the charge: