Question

If you work with someone who gets a flu shot during flu season, you are less likely to catch the flu. If the effects of getting a flu shot were taken into account by consumers, this would cause the _____ curve for flu shots to shift to the _____.

a) supply; left

b) supply; right

c) demand; left

d) demand; right

If the effects of pollution from gasoline use were taken into account by gasoline producers, this would cause the _____ curve for gasoline to shift to the _____.

a) supply; left

b) supply; right

c) demand; left

d) demand; right

If the effects of driving during rush hour were taken into account by drivers, this would cause the number of cars on the road to _____ during rush hour.

a) not change

b) increase

c) decrease

d) fall to zero

What happens when external costs of production are taken into consideration by producers?

a) The supply curve shifts to the right.

b) The supply curve shifts to the left.

c) The demand curve shifts to the left.

d) The demand curve shifts to the right.

A demand curve that incorporates only private benefits of consumption when positive externalities exist would:

a) lie below and to the left of the demand curve that incorporates both private and social benefits.

b) lie above and to the right of the demand curve that incorporates both private and social benefits.

c) be steeper than a demand curve that incorporates both private and social benefits.

d) be flatter than a demand curve that incorporates both private and social benefits.

What happens when the external benefits of consumption are taken into consideration by consumers?

a) The supply curve shifts to the right.

b) The supply curve shifts to the left.

c) The demand curve shifts to the left.

d) The demand curve shifts to the right.

Answer 1

If you work with someone who gets a flu shot during flu season, you are less likely to catch the flu. If the effects of getting a flu shot were taken into account by consumers, this would cause the _____ curve for flu shots to shift to the _____.

d) demand; right

demand for flu shot rises, so demand curve will shift to right.

If the effects of pollution from gasoline use were taken into account by gasoline producers, this would cause the _____ curve for gasoline to shift to the _____.

a) supply; left

If pollution cost is taken into account, supply will fall and shift to left.

If the effects of driving during rush hour were taken into account by drivers, this would cause the number of cars on the road to _____ during rush hour.

c) decrease

In order to avoid traffic, people will avoid rush hours.

What happens when external costs of production are taken into consideration by producers?

b) The supply curve shifts to the left.

it will increase cost of production, so supply will shift to left.

A demand curve that incorporates only private benefits of consumption when positive externalities exist would:

a) lie below and to the left of the demand curve that incorporates both private and social benefits.

What happens when the external benefits of consumption are taken into consideration by consumers?

d) The demand curve shifts to the right.