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Negative Externalities Definition

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Please check my answers:

A negative externality:
a. is any cost above the economic cost
b equals the social cost plus the firm's private cost.
c. is an uncompensated cost imposed by an individual or firm on others
d. equals the opportunity cost minus the social costs.
My answer is I think it is A

With tradable emissions permits, the price of the permit is determined by
a. the government.
b. the supply and demand of permits.
c. environmental protection organizations
d. the World Trade Organization.
My answer is A ( governments often limit pollution with environment standards)

The two principles of tax fairness are:
a. the minimize distortions principle and the maximize revenue principle
b. the benefits principle and the ability-to-pay principle.
c. the proportional tax principle and the ability-to-pay principle.
d. the equity principle and the efficiency principle.
My answer is C

The structure of the U.S. federal income tax system reflects the:
a. tax-efficiency principle.
b. ability-to-pay principle
c. benefit principle
d. lump-sum tax principle
my answer is b

Which of the following transactions represents a transfer payment
a. The government pays an employee by making a direct transfer to the employee's bank account.
b. An army officer, paid by the government, transfers part of the money he receives back to the government to pay his taxes.
c. A senior citizen receives a social-security payment.
d. All of the above.

My answer is d

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Solution Preview

Negative externalities are uncompensated costs imposed upon individuals who are not directly involved in a good's production or consumption.

With pollution permits, the government has already limited pollution by the number of permits it issues (pollution is limited to number of permits times each permit ...

$2.19
See Also This Related BrainMass Solution

Define benefit and cost externalities.

2. Define benefit and cost externalities. Explain why situations involving benefit externalities tend to result in an underallocation of society's scarce resources, and why situations involving cost externalities tend to result in an overallocation of society's scarce resources.

12. The Learned Book Company has a choice of publishing on of two books on the subject of Greek mythology. It expects the sales period for each to be extremely short, and it estimates profit probabilities as follows:

Book A Book B
Probability Profit Probability Profit
0.2 $2,000 0.1 $1,500
0.3 2,300 0.4 1,700
0.3 2,600 0.4 1,900
0.2 2,900 0.1 2,100

Calculate the expected profit, standard deviation, and coefficient of variation for each book. If you were asked which of the two to publish, what would be your advice?

4. A U.S importer who owes a Belgian company 500,000 payable 30 days from today expects that the US$ will weaken during this period. What would you advise the importer to do? What would happen if the US$ were to strengthen during this period?

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