negative externalities exercise#2key（负外部性运动# 2键）.docVIP

Course Student Name: ____________________________ Course Number Section: __________________________________ University or College Professor’s Name Negative Externalities Exercise #2 Answers ( points) Please limit your answers to the spaces provided. If necessary, write on the back of the page. Do not attach printout or additional pages. All questions pertain to the Externalities module in the SimEcon? software package. Make sure that you have read the “Negative Externalities Manual” and “SimEcon? Operation Instructions”. These materials may be found at the Class Web site prior to beginning the exercise. For many of the exercise’s questions, it will be necessary to refer to those instructions. For many of the exercise’s questions, it will be necessary to refer to your text. Open the Externalities module. You will be asked to select what type of externality. Select “Negative”. You will then be presented with the table entitled, “Initial Conditions for the Steel Industry”. Fill in the table below: Production: 150.00 MPC: $ 250.00 Pollutants: 150.00 MSC: $ 300.00 Price of Steel: $ 250.00 MEC: $ 50.00 Employment: 1,125.00 Total External Cost: $ 1,250.00 Average Wage: $ 20.00 What does the term, external costs, represent? External costs represent that portion of social costs which are above and beyond the private costs that are incurred in the production of a good or service. Do external costs represent costs that pass through the marketplace in terms of dollars and cents paid? ____No____ (Yes, No). Does the term, external costs, refer to the cost of externalities endured by others as a result of the production of a good or service? ____Yes____ (Yes, No). What does the term, marginal external costs, refer to? Marginal external costs refer to the additional external costs generated by producing one more unit of output. Wha