罗森财政学第七版(英文版)配套习题及答案AnswerstoCHAPTER5.docVIP

Answers to CHAPTER 5 - Externalities Answers to Multiple-Choice Questions 1. d 2. a 3. c 4. b 5. c 6. d 7. a 8. b 9. a 10. d 11. c 12. b 13. d 14. a 15. c 16. d 17. a Answers to Discussion Questions 1. a. Set PMC equal to demand and solve for P and X. X 50/9, P 170/9. b. Find SMC by adding PMC to MD. Set SMC equal to demand and solve for P and X. X 49/11, P 232/11. c. At X 49/11, subtract PMC from SMC. Tax 109/22. 2. a. Set MD MB and solve for X. X 32/6. b. Insert 32/6 into either MD or MB. Fee 86/3. c. Set MB equal to zero and solve for X. X 34/3. 3. Without intervention, optimal will be where PMB 0. X 15. The efficient level is X 5. The area beneath the PMB is gained. Gain 25. 4. a b c Not socially optimal. 5. Put 25 into demand equation. P 7.5. Answers to True/False/Uncertain Questions 1. F 2. T 3. T 4. T 5. U 6. T 7. U 8. F 9. T 10. U Depends on the amount of time spent partying. Answers to Essay Questions 1. Social conventions help in alleviating externalities without government intervention by teaching others to make some form of compensation for damages caused. 2. Market forces have been effective in areas like the environment, when applied correctly. They have not worked as well in the area of medical services, for example. 3. Bargaining costs are generally not zero. Identifying damages is difficult. There is generally some amount of asymmetric information. Test Bank to accompany Rosen’s Public Finance, Seventh Edition Chapter 5 1 SMC PMC+MB PMC MBH MB/MC Pesticides MBT SMC PMC+MB PMC MBH MB/MC Pesticides MBT