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Homework answers / question archive / An externality exists whenever the economy cannot benefit from government intervention
An externality exists whenever the economy cannot benefit from government intervention. O markets are not able to reach equilibrium. O a firm sells its product in a foreign market. Bobbi engages in an activity that influences the well-being of Rosa and yet Bobbi neither pays nor receives payment for that influence. Question 7 (1 point) Dog owners do not bear the full cost of the noise their barking dogs create and often take too few precautions to prevent their dogs from barking. Local governments address this problem by making it illegal to "disturb the peace." having a well-funded animal control department. subsidizing local animal shelters. encouraging people to adopt cats.
When externalities exist, buyers and sellers neglect the external effects of their actions, but the market equilibrium is still efficient do not neglect the external effects of their actions, and the market equilibrium is efficient neglect the external effects of their actions, and the market equilibrium is not efficient. do not neglect the external effects of their actions, and the market equilibrium is not efficient. Question 9 (1 point) Dioxin emission that results from the production of paper is a good example of a negative externality because self-interested paper firms are generally unaware of environmental regulations. Othere are fines for producing too much dioxin. self-interested paper producers will not consider the full cost of the dioxin pollution they create.
Question 9 (1 point) Dioxin emission that results from the production of paper is a good example of a negative externality because self-interested paper firms are generally unaware of environmental regulations. Othere are fines for producing too much dioxin. self-interested paper producers will not consider the full cost of the dioxin pollution they create. toxic emissions are the best example of an externality.
