1|Page
ECON 202 OLE MISS HAYES FINAL NEWEST 2026 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED||
According to the Coase theorem, in the presence of externalities
a.
the assignment of legal rights can prevent externalities.
b.
private parties can bargain to reach an efficient outcome.
c.
government assistance is necessary to reach an efficient
outcome.
d.
the initial distribution of property rights will determine the efficient
outcome - ANSWER-b.
By allowing an income-tax deduction for charitable contributions,
the government
a.
,2|Page
encourages a private solution to a particular negative-externality
problem.
b.
discourages a private solution to a particular positive-externality
problem.
c.
discourages a private solution to a particular negative-externality
problem.
d.
encourages a private solution to a particular positive-externality
problem. - ANSWER-a.
In class action lawsuits interested parties to the lawsuit are not
required to pay attorney fees directly. This is an example of an
attempt to a.
maximize attorney fees.
b.
reduce the transaction costs of finding a private solution to an
externality.
c.
,3|Page
reduce the incentive of attorneys to file class action lawsuits.
d.
regulate attorney fees. - ANSWER-b.
A corrective tax
a.
can be used to internalize a negative externality.
b.
imposed on sellers shifts the supply curve to the left.
c.
imposed on buyers shifts the demand curve to the left.
d.
All of the above are correct. - ANSWER-d
A cost imposed on someone who is neither the consumer nor the
producer is called a
a.
, 4|Page
command and control policy.
b.
negative externality.
c.
corrective tax.
d.
positive externality. - ANSWER-b.
Suppose that smoking creates a negative externality. If the
government does not interfere in the cigarette market, then
a.
the equilibrium quantity of cigarettes smoked will equal the
socially optimal quantity of cigarettes smoked.
b.
the equilibrium quantity of cigarettes smoked will be greater than
the socially optimal quantity of cigarettes smoked.
c.
the equilibrium quantity of cigarettes smoked will be less than the
socially optimal quantity of cigarettes smoked.
ECON 202 OLE MISS HAYES FINAL NEWEST 2026 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED||
According to the Coase theorem, in the presence of externalities
a.
the assignment of legal rights can prevent externalities.
b.
private parties can bargain to reach an efficient outcome.
c.
government assistance is necessary to reach an efficient
outcome.
d.
the initial distribution of property rights will determine the efficient
outcome - ANSWER-b.
By allowing an income-tax deduction for charitable contributions,
the government
a.
,2|Page
encourages a private solution to a particular negative-externality
problem.
b.
discourages a private solution to a particular positive-externality
problem.
c.
discourages a private solution to a particular negative-externality
problem.
d.
encourages a private solution to a particular positive-externality
problem. - ANSWER-a.
In class action lawsuits interested parties to the lawsuit are not
required to pay attorney fees directly. This is an example of an
attempt to a.
maximize attorney fees.
b.
reduce the transaction costs of finding a private solution to an
externality.
c.
,3|Page
reduce the incentive of attorneys to file class action lawsuits.
d.
regulate attorney fees. - ANSWER-b.
A corrective tax
a.
can be used to internalize a negative externality.
b.
imposed on sellers shifts the supply curve to the left.
c.
imposed on buyers shifts the demand curve to the left.
d.
All of the above are correct. - ANSWER-d
A cost imposed on someone who is neither the consumer nor the
producer is called a
a.
, 4|Page
command and control policy.
b.
negative externality.
c.
corrective tax.
d.
positive externality. - ANSWER-b.
Suppose that smoking creates a negative externality. If the
government does not interfere in the cigarette market, then
a.
the equilibrium quantity of cigarettes smoked will equal the
socially optimal quantity of cigarettes smoked.
b.
the equilibrium quantity of cigarettes smoked will be greater than
the socially optimal quantity of cigarettes smoked.
c.
the equilibrium quantity of cigarettes smoked will be less than the
socially optimal quantity of cigarettes smoked.
