Suppose a consumer has an income of $800 per month and that she spends her entire income each month on beer and hamburgers

The minimum wage has its greatest impact on the market for
teenage workers

An externality is the impact of
a person's actions on the well-being of a bystander

All externalities
cause markets to fail to allocate resources efficiently

According to the graph below, this market is experiencing

a negative externality

When negative externalities are present in a market
social costs will be greater than private costs

Internalizing an externality refers to making
buyers and sellers take into account the external effects of their actions

Which of the following policies is the government most inclined to use when faced with a positive externality?
subsidies

A command-and-control policy is another term for a
government regulation 

Corrective taxes
give factory owners an economic incentive to reduce pollution

Tradable pollution permits
will be more valuable to firms that can reduce pollution only at high costs

What is the difference between command-and-control policies and market-based policies towards externalities?
command-and-control policies regulate behavior directly, whereas market-based policies provide incentives for decision-makers to change their behavior

The theory of consumer choice examines
the tradeoffs inherent in decisions made by consumers

Suppose a consumer has an income of $800 per month and that she spends her entire income each month on beer and hamburgers. The price of a pint of beer is $5, and the price of a hamburger is $4. Which of the following combinations of beer and hamburgers represent a point that would lie to the exteriorof the consumer's budget constraint?
160 beers and 200 hamburgers