Clutch Prep is now a part of Pearson
Ch. 7 - ExternalitiesWorksheetSee all chapters
All Chapters
Ch. 1 - Introduction to Microeconomics
Ch. 2 - Introductory Economic Models
Ch. 3 - Supply and Demand
Ch. 4 - Elasticity
Ch. 5 - Consumer and Producer Surplus; Price Ceilings and Floors
Ch. 6 - Introduction to Taxes and Subsidies
Ch. 7 - Externalities
Ch. 8 - The Types of Goods
Ch. 9 - International Trade
Ch. 10 - The Costs of Production
Ch. 11 - Perfect Competition
Ch. 12 - Monopoly
Ch. 13 - Monopolistic Competition
Ch. 14 - Oligopoly
Ch. 15 - Markets for the Factors of Production
Ch. 16 - Income Inequality and Poverty
Ch. 17 - Asymmetric Information, Voting, and Public Choice
Ch. 18 - Consumer Choice and Behavioral Economics
If conditions are just right, private solutions to externalities can occur. This means the government doesn't have to put its sticky fingers in our market!

Concept #1: The Coase Theorem

Practice: A key element of the Coase theorem is:

Practice: Which of the following is not a way of dealing with externalities?

Practice: If the assumptions of the Coase theorem are satisfied, th

Practice: It is possible to remedy a positive externality by:

Practice: The socially optimal level of pollution: