A trial question (1 Viewer)

[lilkiwicutie89]

hey i have this question,... everyone thinks C is the answer BUT my teacher thinks it wrong, i even asked another eco teacher and he said it was C .. so yeah what are you thoughts///

12. Which of the following is an example of a negative exteralitiy?

a> decreaing interantional competiveness of Australian industries in the exteranl sector
b> one who chooses not to contribute to the cost of a public good
c> an oil spill in sydney harbour
d> removal of waste materail from the Parramatta river....

* drum roll *


the answer is DDDDDDDDDDDDDDD omg soo annoying casue 4 people in my class even objected ... so what are your thoughts??

 

[felixcthecat]

ahhh y did my eyes hav to wonder to the *DDDDDDDDDD* after reading the question ><'.. yea, but after knowing the answer *sigh*.. C and D could both be answers, but i may hav chosen D since it seems more of a direct cause from economic activities having adverse impacts.. iono, C seems a bit spontaneous to me.. like a random event that, so i would've chosen D instead of C ><'


iono ><'

 

[lilkiwicutie89]

ahhh y did my eyes hav to wonder to the *DDDDDDDDDD* after reading the question ><'.. yea, but after knowing the answer *sigh*.. C and D could both be answers, but i may hav chosen D since it seems more of a direct cause from economic activities having adverse impacts.. iono, C seems a bit spontaneous to me.. like a random event that, so i would've chosen D instead of C ><'


iono ><'

really OMG i sooo dont understand why is D ...

 

[gnrlies]

It's d because an oil spill is not a cost incurred in production.

An oil spill is a freak event.

Cleaning up the paramatta river is a cost incurred in production as the factories use it to channel out all of their waste products. As far as the producer is concerned, this is free for them to do as assumedly they don't need ot pay for this waste disposal (or at least once upon a time they didn't).

Now people are paying money for it to be cleaned up.

Therefore its a negative externality.

Thats not to say that C is completely incorrect, but just that its not the best answer. You have the responsibility to read all options and determine the best response, which in this case is clearly D.

 

[tjis]

I think the answer should be D.

 

[jon0_o]

how is d negative though. removal of waste products is positive regardless of whether its an externality or not, which I think it is. It's not covered by market forces .. I think none of them are totally correct but I reckon c is still the best answer.

 

[lilkiwicutie89]

how is d negative though. removal of waste products is positive regardless of whether its an externality or not, which I think it is. It's not covered by market forces .. I think none of them are totally correct but I reckon c is still the best answer.

HERE... right here.. i totally agree with you .. but im brainwashed that D is the Answer ... casue i was read the leading edge textbook .. it proves that C is the answer .. or its just my understaning that has a problem, the teacher said she go over that .. but yeahh ...

or maybe its just a badly worded question ?

tC

 

[aileenli]

it is totally C!!!! i had this question in the tim riley workbook, some other schools past years trial papers, and my trials and it was the oil spill thing.

it CANNOT be D because D is not a NEGATIVE externality. it does not state anywhere WHO would be cleaning up the waste material and plus the government has something called environmental LAWS to stop people from polluting the water, contrary to what gnrlies said.

 

[Loz_metalhead]

Hmm I thought it was C straight away...

 

[felixcthecat]

it is totally C!!!! i had this question in the tim riley workbook, some other schools past years trial papers, and my trials and it was the oil spill thing.

it CANNOT be D because D is not a NEGATIVE externality. it does not state anywhere WHO would be cleaning up the waste material and plus the government has something called environmental LAWS to stop people from polluting the water, contrary to what gnrlies said.

whether there are laws stopping ppl from polluting the water is not up to your own decision, the question states that it has been polluted hence waste material needs to be removed... and C doesn't state 'who' cleans it up either.. =.=''

 

[gnrlies]

how is d negative though. removal of waste products is positive regardless of whether its an externality or not, which I think it is. It's not covered by market forces .. I think none of them are totally correct but I reckon c is still the best answer.

That is incorrect.

The removal of the waste is a cost to society resulting from a negative externality (i.e. pollution).

It is therefore an example of a negative externality as someone needs to pay for the clean up (it doesn't even matter who pays for it).

It is 100% definately without question D.

 

[aileenli]

okay then....but dont say i didnt warn you....

 

[sunjet]

yeah it's D, just get your head around the fact that the river has been polluted.

 

[lilkiwicutie89]

yeah .. aliennee// (sorry cant spell ) i agree with you too ..

 

[Take_It_Away]

IMO D is the best answer therefore it is correct (gnrlies has pretty much explained all this). The answer is always the "best answer" not "choose any answer that could be remotely correct". The idea is to confuse students, to catch out those who are able to apply their knowledge to get the best answer. The other possible answers are there to confuse students.

But I don't know why i'm bothering- as this thread shows, those who think one answer is correct will usually stick with that theory even when presented with information that shows that another answer is more correct...Why bother asking people for their thoughts on what is correct if you are not willing to accept a varying view to yours?

 

[passion89]

Take_It_Away - I love your sig...Go Live!!

 

[mattonline]

It is 100% definately without question D.

I agree... c is just bad luck, but its not a negative externality

 

[jon0_o]

according to the Catholic Trial 2001 marking guidelines the answer is C. I'm pretty sure wherever that Q came from was sourced from there since 2001 was the first yr of the new syllabus.

The removal of the waste is a cost to society resulting from a negative externality (i.e. pollution). It is therefore an example of a negative externality as someone needs to pay for the clean up

In economics, an externality is a side effect from one activity which has consequences for another activity but is not reflected in market prices.
A negative externality is something that costs the producer nothing, but is costly to society in general.

 

[MoonLiteDreamz]

according to the Catholic Trial 2001 marking guidelines the answer is C. I'm pretty sure wherever that Q came from was sourced from there since 2001 was the first yr of the new syllabus.



In economics, an externality is a side effect from one activity which has consequences for another activity but is not reflected in market prices.
A negative externality is something that costs the producer nothing, but is costly to society in general.

agreed. Nice explaination btw.

 

[P_Dilemma]

dayum, that was a tricky little bugger. To make you feel better i'm sure that i'd have jumped to C as well.

D has already been explained, so i wont re-invent the wheel. It just takes a lot of thinking, if you haven't gotten used to this kind of thing.

-P_D