12/8/24, 10:11 AM Quiz 5: Attempt review
Dashboard / My courses / T1-24-HSS 111-BI-CSE / Quizzes / Quiz 5
Started on Tuesday, 12 November 2024, 10:27 AM
State Finished
Completed on Tuesday, 12 November 2024, 10:38 AM
Time taken 10 mins 31 secs
Grade 9.50 out of 10.00 (95%)
Question 1
Correct
Mark 2.00 out of 2.00
A chemical plant produces goods that result in an external cost of Rs 30 per unit due to water pollution. The plant’s marginal cost
(MC) without the externality is given by MC = 10 + 0.5Q, where Q is the quantity produced. The demand for the product is given by
P = 100 - Q. What is the socially optimal level of output if the external cost is included, and what price will this output yield?
a. Output = 30 units, Price = Rs 70
b. Output = 20 units, Price = Rs 80
c. Output = 35 units, Price = Rs 65
d. Output = 40 units, Price = Rs 60
The correct answer is: Output = 40 units, Price = Rs 60
Question 2
Correct
Mark 1.00 out of 1.00
Which of the following is TRUE?
a. Pigovian tax shifts demand curve inwards
b. Pigovian tax shifts demand curve outwards
c. Pigovian tax shifts the supply curve outwards
d. Pigovian tax shifts supply curve inwards
The correct answer is: Pigovian tax shifts supply curve inwards
[Link] 1/4
12/8/24, 10:11 AM Quiz 5: Attempt review
Question 3
Correct
Mark 1.00 out of 1.00
Assertion (A): Negative externalities lead markets to produce a larger quantity than is socially desirable.
Reason (R): Negative externalities increase the private cost of goods and thus reduce the overall production.
a. Both A and R are true, and R is the correct explanation of A.
b. Both A and R are true, but R is not the correct explanation of A.
c. A is false, but R is true.
d. A is true, but R is false.
The correct answer is: A is true, but R is false.
Question 4
Correct
Mark 1.00 out of 1.00
Assertion (A): The government can internalize a positive externality by subsidizing activities with beneficial spillover effects.
Reason (R): Subsidies lower the private cost and encourage production to reach the socially optimal level.
a. Both A and R are true, and R is the correct explanation of A.
b. A is true, but R is false.
c. A is false, but R is true.
d. Both A and R are true, but R is not the correct explanation of A.
The correct answer is: Both A and R are true, and R is the correct explanation of A.
Question 5
Correct
Mark 1.00 out of 1.00
A steel manufacturing plant is located near a community that experiences increased health problems due to air pollution from the
factory. The government proposes a corrective tax to match the external cost of pollution. Which of the following would be correct
consequences of this tax policy?
a. The plant’s production costs increase, encouraging output reduction, which decreases pollution
b. Community health may improve as pollution decreases with reduced output.
c. If the tax rate is too low, pollution levels may not significantly change.
d. The firm will avoid passing any tax costs onto consumers.
The correct answers are: The plant’s production costs increase, encouraging output reduction, which decreases pollution, Community
health may improve as pollution decreases with reduced output., If the tax rate is too low, pollution levels may not significantly
change.
[Link] 2/4
12/8/24, 10:11 AM Quiz 5: Attempt review
Question 6
Partially correct
Mark 0.50 out of 1.00
Which of the following are examples of negative externalities?
a. Cigarette smoking
b. Cancer Research
c. Neighbors’ dog barking loudly at night
d. Planting trees
The correct answers are: Cigarette smoking, Neighbors’ dog barking loudly at night
Question 7
Correct
Mark 1.00 out of 1.00
Which of the following best represents a positive externality?
a. A ride-sharing app becomes more useful to users as more drivers join the platform.
b. A social media platform becomes more valuable as more people join it.
c. A farmer plants trees, improving air quality in the surrounding area.
d. A manufacturing plant releases waste, affecting the water quality downstream.
The correct answer is: A farmer plants trees, improving air quality in the surrounding area.
Question 8
Correct
Mark 1.00 out of 1.00
Assertion (A): Pigovian taxes are designed to internalize the costs associated with negative externalities.
Reason (R): Pigovian taxes set a price for polluting, thus aligning private costs with social costs.
a. A is true, but R is false.
b. Both A and R are true, and R is the correct explanation of A.
c. A is false, but R is true.
d. Both A and R are true, but R is not the correct explanation of A.
The correct answer is: Both A and R are true, and R is the correct explanation of A.
[Link] 3/4
12/8/24, 10:11 AM Quiz 5: Attempt review
Question 9
Correct
Mark 1.00 out of 1.00
Which of the following is TRUE regarding space programmes of nations?
a. Man can colonize other planets.
b. There are technology spill overs leading to improved standard of living of people
c. They can alleviate poverty
d. They are a waste of tax payers’ money
The correct answer is: There are technology spill overs leading to improved standard of living of people
◄ Quiz-4
Jump to...
Quiz-6 ►
[Link] 4/4
