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Wk 4 Team: Handling Externalities

Wk 4 Team: Handling Externalities

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REVIEW QUESTIONS
Ch3 Q2
Do you agree with the following statement? fficiency cannot be achieved when
externalities
exist. xplain your view
Ch3 Q6
What kinds of information must be gathered to internalize an externality?
Ch3 Q7
Why do limits on pollution emissions fail to internalize the externality that generates the
pollution?
Ch3 Q8
Under what conditions are externalities likely to be internalized without the necessity of
government intervention?
Ch5 Q7
When does majority rule lead to the possibility of public choices that result in the
outcome of an election being contingent on the order in which alternatives are presented
to the electorate? Under what conditions will a unique collective choice result from simple
majority rule?

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