1. A fire extinguisher is an example of a(n)
good with a(n)
benefit.
2. Education generates three types of external benefits: ,
,
and
.
3. The external benefit of transforming a high school dropout into a graduate may amount to about $
in 30 years.
4. A parent chooses the level of education at which the marginal benefit equals marginal
cost and chooses
(more/less) than the socially efficient level because the parent ignores the .
5. It is sensible for the government to subsidize worker training and education because some of the benefits from training go to.
6. For a car owner who has theft insurance, the benefit from a LoJack system is usually well below its annual cost of $
. However, the
benefit from fewer vehicle thefts is about $1,300 per LoJack per year. (Related to Application 3 on page 671.)
7.The external benefit of a tree is measured by the change in
, and is equal to about
. (Related to Application 4 on page 671.)