Macro Learning Objectives for questions over Exam 1 Form A

 

FALL/SPRING/SUMMER

PCM

 ECON 2302 MICROECONOMICS   

Chapter 15

Below you will find the learning objective, concept, idea, term, or theory that each question on the exam will cover. The numbers in the list refer to the question number on Exam 4 that will test your knowledge of that specific learning objective. You will also find a reference to the page numbers in the textbook, Microeconomics, Explore & Apply: Activebook Version 2.0 where the substance of each question is explained. A much better understanding can often be attained by working through the "active graphs" and "smart graphs" connected to many of these objectives in the online material.

 

  After reading this chapter, you should be able to:

  1. Explain what a negative externality is. Pages 236-239.
  2. Explain what a positive externality is. Pages 236-239.
  3. Use a graph to illustrate that the free market outcome when negative externalities are present is different from the efficient outcome. Page 237.
  4. Use a graph to illustrate that the free market outcome when positive externalities are present is different from the efficient outcome. Pages 237-238.
  5. Explain the importance of property rights and the Coase theorem when markets are missing and externalities exist. Pages 239-240.
  6. Explain the incentives to conserve when common property is present. Pages 240-241.
  7. Discuss the benefits and drawbacks to using moral suasion and mandates to solve problems created by externalities. Pages 241-242.
  8. Describe the benefits and drawbacks of using pollution taxes and user fees to solve the problems created by pollution. Pages 242-243.
  9. Explain the benefits and problems of using marketable permits to solve the problems of pollution. Pages 243-245.
  10. Identify the major issues in transborder pollution and caring for the global environment. Pages 245-248.