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1、1. Ifanexternalityispresentinamarket,economicefficiencymaybeenhancedby a. increasedcompetition. b. weakeningpropertyrights. c. betterinformedmarketparticipants. d. governmentintervention.ANSWER: dDIFFICULTY: EasyLEARNING OBJECTIVES: ECON.MANK.097-Examin
2、etheeffectsofanexternalityonamarket.TOPICS: ExternalitiesPubliceconomicsWelfareeconomicsKEYWORDS: BLOOM'S:ApplicationCUSTOM ID: 001.10.1-MC-MANK082. Externalitiestendtocausemarketstobe a. inefficient. b. unequal. c. unnecessary. d. overwhelmed.ANSWER:
4、ecause a. externalitiesdon'toccurinprivatemarkets. b. sellersincludecostsassociatedwithexternalitiesinthepriceoftheirproduct. c. decisionmakersinthemarketfailtoincludethecostsoftheirbehaviortothirdparties. d. thegovernmentcannoteasilyestimatetheoptimalquan
6、rlocalresidents, a. noiserestrictionswillforceresidentstomoveoutofthearea. b. asenseofsocialresponsibilitywillcauseownersofthemilltoreducenoiselevels. c. thegovernmentcanraiseeconomicwell-beingthroughnoise-controlregulations. d. thegovernmentshouldavoidint