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Questions and Answers
What is the main topic of the lecture 6 in the economic policy course?
What is the main topic of the lecture 6 in the economic policy course?
- Mergers and social conventions
- Externalities and market failure (correct)
- Pigouvian taxes and subsidies
- Bargaining and the Coase theorem
In the context of externalities, what are private remedies primarily concerned with?
In the context of externalities, what are private remedies primarily concerned with?
- Promoting social conventions for economic stability
- Facilitating mergers and acquisitions
- Addressing external effects to prevent market failure (correct)
- Implementing Pigouvian taxes and subsidies
Which policy instrument involves imposing charges on activities that cause negative externalities?
Which policy instrument involves imposing charges on activities that cause negative externalities?
- Command-and-control regulation
- Pigouvian taxes (correct)
- Permits
- Mergers
According to the compulsory reading, which book and chapter discusses externalities in public economics?
According to the compulsory reading, which book and chapter discusses externalities in public economics?
What is the definition of an externality in economics?
What is the definition of an externality in economics?
What are the two categories of externalities in economics?
What are the two categories of externalities in economics?
In which type of externality does the externality affect profit?
In which type of externality does the externality affect profit?
Which of the following is an example of a negative consumption externality?
Which of the following is an example of a negative consumption externality?
What may result if economic agents do not consider all the effects of their actions when making decisions?
What may result if economic agents do not consider all the effects of their actions when making decisions?
What does the utility function 𝑈1 = 𝑥1 + 𝑢1 (𝑧1) + 𝑣1 (𝑧2) represent?
What does the utility function 𝑈1 = 𝑥1 + 𝑢1 (𝑧1) + 𝑣1 (𝑧2) represent?
In competitive equilibrium conditions, what does 𝑢ℎ′ 𝑧 ℎ = 1 represent?
In competitive equilibrium conditions, what does 𝑢ℎ′ 𝑧 ℎ = 1 represent?
What is the key presumption on which the efficiency of the competitive market is based?
What is the key presumption on which the efficiency of the competitive market is based?
What kind of market failure may occur if economic agents do not consider all the effects of their actions when making decisions?
What kind of market failure may occur if economic agents do not consider all the effects of their actions when making decisions?
In an efficient allocation, what does 1 + 𝑈2 represent?
In an efficient allocation, what does 1 + 𝑈2 represent?
What happens to equilibrium prices if external effects are considered in the determination?
What happens to equilibrium prices if external effects are considered in the determination?
What does the equation 𝑥1 + 𝑧1 + 𝑥2 + 𝑧2 = 𝜔1 + 𝜔2 represent?
What does the equation 𝑥1 + 𝑧1 + 𝑥2 + 𝑧2 = 𝜔1 + 𝜔2 represent?
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