List of top Economics Questions on Externality

Sequence the Pigouvian externality corrections: A. Identify the external cost, B. Measure marginal external damage, C. Compute marginal social cost, D. Tax equals to marginal external damage, E. Welfare improves after corrections.

The efficient level of output is the level at which price of product is marginal social cost (MSC).

Match List-I with List-II:

List-I(Scenarios)		List-II(Type of Externality)
A	Apple farmer who has his orchard next to a beekeeper	I	Positive Consumption
B	Villages downstream from a manufacturing plant	II	Negative Consumption
C	An unvaccinated family living next door to a family who has received the COVID-19 vaccination	III	Positive Production
D	Rice farmer who has his field next to a chemical plant	IV	Negative Production

Choose the correct answer from the options given below