11.Private costs exceed social cost when external benefits created.
12.The government : 1413860
11.Private costs exceed social cost when external benefits are created.
12.The government should subsidize the production of goods which generate a positive externality.
13.Production becomes more efficient if a common property is turned into a private property.
14.When a particular resource is commonly used, it tends to get underutilized.
15.When resources are commonly owned, there are incentives in place to ensure that the resources are used efficiently.
16.Private property rights help to ensure an efficient use of resources, because owners of the resources must bear the costs of inefficient use.
17.The major problem with common ownership is that, too much of the commonly owned is consumed, and not enough is produced.
18.When the people creating an externality are made to pay for the externality by the government, the externality is said to be internalized.
19.A pollution tax has the effect of reducing the costs of production for a firm, leading to a rightward shift of the supply curve.
20.When a good is subsidized by the government, the amount of the good produced or consumed declines.