One way to achieve efficiency in a market with a negative externality is
a. to raise the market demand curve to the position of the marginal social cost curve
b. to apply the Coase theorem
c. to lower the marginal social cost curve to the position of the market supply curve
d. to eliminate all side payments
e. to raise the market supply curve to the position of the marginal social cost curve
E
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Two methods of measuring GDP are
A) the income approach and the expenditure approach. B) the income approach and the receipts approach. C) the goods approach and the services approach. D) the saving approach and the investment approach.
If people voluntarily bring their recyclable materials to a recycling center, these materials reduce landfill space, reduce the need for virgin material extraction, and provide an inexpensive input in many production processes. This results in
a. an increase in the externalities associated with producing goods b. mandatory recycling c. an increase in private costs of producing goods d. a narrowing of the gap between private and social costs of producing goods