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An externality is internalized if the parties that generate the externalities incorporate the external costs and/or benefits of their actions into their own private cost‑benefit calculations. This can be achieved by several means. Which one is not one of corrective devices for a market failure?    

Externalities arise because someone consumes something that has an external benefit or cost for others (1)___________(True/False) Externalities arise because someone produces something that has an external benefit or cost for others (2)___________(True/False)

Some public goods are rivalrous (1)__________ (True/False)  A public good is (2)_________(excludable/nonexcludable)  if it is impossible, or prohibitively costly, to exclude someone from obtaining the benefits of the good after it has been produced.  A public good is (3)_________(excludable/nonexcludable) if it is possible, or not prohibitively costly, to exclude someone from obtaining the benefits of the good after it has been produced.

Marginal social cost (MSC)  Marginal private cost (MPC)  Marginal external cost (MEC) Marginal social benefits (MSB)  Marginal private benefits (MPB)  Marginal external benefits (MEB) Marginal social cost (MSC) is __________________

 Based on IMViC Test slide for normal flora- Please test yor knowledge. K.pnuemoniae is _________ fermenter.

One reason for market failure is when externalities are present. (1)__________ (True or False) Sometimes, the production and consumption of goods create side effects, or spillovers, that impact people who are not directly involved in the market transactions. These side effects are known as externalities (2) ___________ (True or False).

The textbook presents three specific types of environmental policies for air pollution as follows: Method 1: Government regulation, or command and control.  Method 2: Emission taxes.  Method 3: Tradeable pollution permits (cap and trade).  In general, economists do not favor _____________________ since they reduce the incentive to discover lower cost methods of reducing pollution and ignore the fact that it might be less costly for some firms to reduce pollution compared to others. 

_____________ exists when one party to a transaction changes his behavior in a way that is hidden from or costly to the other party. For example, once we are covered by insurance, we may take greater risks, knowing the insurance will cover our mistakes. 

In a cascaded Op-Amp configuration designed for complex signal processing, how does the output of one stage affect the next stage?

Letter “F” is indicating the __________ artery.