Question 1
2 / 2 pts
The quantity produced of a common-resource good is likely to deviate from the socially optimal
quantity because:
common-resource goods are nonrival.
common-resource goods cannot be traded.
there is an incentive to overproduce the good.
of the free-rider problem.
positive externalities are likely to exist.
Question 2
2 / 2 pts
A cap-and-trade policy is most often used to solve problems associated with:
making free-riders pay for the goods they are consuming.
the production of public goods.
the production of goods that generate a negative externality.
the production of goods that generate a positive externality.
the production of club goods.
Question 3
2 / 2 pts
The amount you pay for gasoline for your car is an example of a(n):
internal cost.
social cost.
