Skip to ContentGo to accessibility pageKeyboard shortcuts menu
OpenStax Logo

14.

What is an externality?

15.

Give an example of a positive externality and an example of a negative externality.

16.

What is the difference between private costs and social costs?

17.

In a market without environmental regulations, will the supply curve for a firm account for private costs, external costs, both, or neither? Explain.

18.

What is command-and-control environmental regulation?

19.

What are the three problems that economists have noted with regard to command-and-control regulation?

20.

What is a pollution charge and what incentive does it provide for a firm to take external costs into account?

21.

What is a marketable permit and what incentive does it provide for a firm to account for external costs?

22.

What are better-defined property rights and what incentive do they provide to account for external costs?

23.

As the extent of environmental protection expands, would you expect marginal costs of environmental protection to rise or fall? Why or why not?

24.

As the extent of environmental protection expands, would you expect the marginal benefits of environmental protection to rise or fall? Why or why not?

25.

What are the economic tradeoffs between low-income and high-income countries in international conferences on global environmental damage?

26.

What arguments do low-income countries make in international discussions of global environmental clean-up?

27.

In the tradeoff between economic output and environmental protection, what do the combinations on the protection possibility curve represent?

28.

What does a point inside the production possibility frontier represent?

Order a print copy

As an Amazon Associate we earn from qualifying purchases.

Citation/Attribution

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Attribution information
  • If you are redistributing all or part of this book in a print format, then you must include on every physical page the following attribution:
    Access for free at https://openstax.org/books/principles-microeconomics-3e/pages/1-introduction
  • If you are redistributing all or part of this book in a digital format, then you must include on every digital page view the following attribution:
    Access for free at https://openstax.org/books/principles-microeconomics-3e/pages/1-introduction
Citation information

© Jan 23, 2024 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.