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Microeconomics, Second Canadian Edition (Hubbard)

Chapter 5 Externalities, Environmental Policy, and Public Goods
5.1 Externalities and Economic Efficiency
1) The stated goal of the British Columbia tax on the burning of fossil fuels is to
A) control the economy.
B) reduce greenhouse gas emissions.
C) raise revenue for the provincial government.
D) punish everyone living outside downtown Vancouver.
Answer: B
Diff: 1 Page Ref: 125
Topic: Externalities
Learning Outcome: n/a - relates to Special Feature
AACSB: Reflective Thinking
Special Feature: Chapter Opener: Can Government Policies Help Protect the Environment?
2) Reached in 2015, the Paris agreement was intended to

A) reduce global emissions of carbon dioxide.
B) reduce global emissions of CFC.
C) restrict the illegal trade in ivory.
D) support the continued survival of the Euro.
Answer: A
2CE: New to 2CE
Special Feature: Chapter Opener: Can Government Policies Help Protect the Environment?
1
Copyright © 2018 Pearson Education, Inc.
3) Conceptually, the efficient level of carbon emissions is the level for which
A) the marginal benefit of reducing carbon emissions is maximized.
B) the marginal cost of reducing carbon emissions is minimized.
C) the marginal benefit of reducing carbon emissions is equal to the marginal cost of reducing carbon
emissions.
D) the marginal benefit of reducing carbon emissions is minimized and the marginal cost of reducing
carbon emissions is maximized.
Answer: C
Special Feature: Economics in Your Life: What's the "Best" Level of Pollution?
2
4) An externality is
A) a benefit realized by the purchaser of a good or service.
B) a cost paid for by the producer of a good or service.
C) a benefit or cost experienced by someone who is not a producer or consumer of a good or service.
D) anything that is external or not relevant to the production of a good or service.
Answer: C
Learning Outcome: 5.1 Identify examples of positive and negative externalities and use graphs to show how
externalities affect economic ...
Special Feature: None
5) Which of the following is a source of market failure?

A) unforeseen circumstances which leads to the bankruptcy of many firms
B) a lack of government intervention in a market
C) incomplete property rights or inability to enforce property rights
D) an inequitable income distribution
Answer: C
Topic: Externalities and Economic Efficiency
6) What is a market failure?

A) It refers to the inability of the market to allocate resources efficiently up to the point where marginal
social benefit equals marginal social cost.
B) It refers to the inability of the market to allocate resources efficiently up to the point where marginal
social benefit equals marginal private cost.
C) It refers to a situation where an entire sector of the economy (for example, the airline industry)
collapses because of some unforeseen event.
D) It refers to a breakdown in a market economy because of widespread corruption in government.
Answer: A
3
7) What are property rights?
A) the title to ownership of any physical asset
B) a legal document verifying ownership of intangible assets
C) the rights individuals or firms have to the exclusive use of their property, including the right to buy
or sell it
D) the right of the government to appropriate private assets for the good of society
Answer: C
8) Which of the following activities creates a negative externality?

A) cleaning up the sidewalk on your block
B) graduating from college
C) repainting the house you live in to improve its appearance
D) keeping a junked car parked on your front lawn
Answer: D
Topic: Negative Externality
9) A negative externality exists if

A) there are price controls in a market.
B) there are quantity controls in a market.
C) the marginal social cost of producing a good or service exceeds the private cost.
D) the marginal private cost of producing a good or service exceeds the social cost.
Answer: C
4
10) Which of the following represents the true economic cost of production when firms produce goods
that cause negative externalities?
A) the private cost of production
B) the social cost of production
C) the external cost of production
D) the explicit cost of production
Answer: B
11) Private costs

A) are borne by producers of a good, while social costs are borne by government.
B) are borne by consumers of a good, while social costs are borne by government.
C) are borne by producers of a good, while social costs are borne by society at large.
D) are borne by producers of a good, while social costs are borne by those who cannot afford to
purchase the good.
Answer: C
Topic: Private Cost
12) What is a "social cost" of production?

A) the cost of the natural resources used up in production
B) the total costs of producing a product, both implicit and explicit costs
C) the sum of all costs to individuals in society, regardless of whether the costs are borne by those who
produce the products or consume the product
D) the cost of the environmental damage created by production
Answer: C
Topic: Social Cost
5
13) If you burn your class notes in your dorm room at the end of the semester in spite of regulations
against it, then you are
A) acting economically irrationally and creating a social cost.
B) avoiding the private costs associated with taking your notes to the recycling and creating a social
cost.
C) acting rationally and creating a positive externality.
D) saving landfill space and creating a social benefit.
Answer: B
Topic: Private Cost
14) Which of the following is an example of a positive externality?

A) banning the sale of candy in elementary schools
B) planting trees along a sidewalk which add beauty and create shade
C) forbidding the use of cell phones in public
D) prohibiting street parking in all residential neighbourhoods
Answer: B
Diff: 2 Page Ref: 127-128
Topic: Positive Externality
15) A positive externality causes

A) the marginal social benefit to be equal to the marginal private cost of the last unit produced.
B) the marginal social benefit to be less than the marginal private cost of the last unit produced.
C) the marginal social benefit to exceed the marginal private cost of the last unit produced.
D) the marginal private benefit to exceed the marginal social cost of the last unit produced.
Answer: C
6
16) When a negative externality exists, the private market produces
A) more than the economically efficient output level.
B) less than the economically efficient output level.
C) products at a low opportunity cost.
D) products at a high opportunity cost.
Answer: A
17) Mandatory motorcycle helmet laws are designed to reduce the severity of injuries resulting from
motorcycle accidents which cost the health care system millions of dollars a year. In this sense, these
mandatory helmet laws are reducing ________ of risky behaviour.
A) positive externalities
B) negative externalities
C) the private benefit
D) the social benefit
Answer: B
7
Figure 5.1
Figure 5.1 shows a market with an externality. The current market equilibrium output of Q 1 is not the
economically efficient output. The economically efficient output is Q2.
18) Refer to Figure 5.1. Suppose the current market equilibrium output of Q1 is not the economically
efficient output because of an externality. The economically efficient output is Q 2. In that case, the
diagram shows
A) the effect of a positive externality in the production of a good.
B) the effect of a negative externality in the production of a good.
C) the effect of an external cost imposed on a producer.
D) the effect of an external benefit such as a subsidy granted to consumers of a good.
Answer: B
AACSB: Analytic Skills
19) Refer to Figure 5.1. If, because of an externality, the economically efficient output is Q 2 and not the
current equilibrium output of Q1, what does S1 represent?
A) the market supply curve reflecting external cost
B) the market supply curve reflecting implicit cost
C) the market supply curve reflecting social cost
D) the market supply curve reflecting private cost
Answer: D
Topic: Private Cost
8
20) Refer to Figure 5.1. If, because of an externality, the economically efficient output is Q 2 and not the
current equilibrium output of Q1, what does S2 represent?
A) the market supply curve reflecting private cost
B) the market supply curve reflecting social cost
C) the market supply curve reflecting external cost
D) the market supply curve reflecting implicit cost
Answer: B
Topic: Social Cost
Figure 5.2
Figure 5.2 shows a market with a negative externality.
21) Refer to Figure 5.2. The efficient output level is

A) Qa.
B) Qb.
C) Qb - Qd.
D) Qd.
Answer: A
9
22) Refer to Figure 5.2. The private profit maximizing quantity for the firm is
A) Qa.
B) Qb.
C) Qb - Qd.
D) Qd.
Answer: B
23) Refer to Figure 5.2. The deadweight loss due to the externality is represented by the area
A) abc.
B) abf.
C) abd.
D) ade.
Answer: B
24) Refer to Figure 5.2. The size of marginal external costs can be determined by
A) S2 + S1 at each output level.
B) S2 - S1 at each output level.
C) the supply curve S2.
D) the supply curve S1.
Answer: B
10
25) Refer to Figure 5.2. The marginal benefit of the last unit produced is represented by the price
A) Pa.
B) Pb.
C) Pc.
D) Pf.
Answer: B
26) Refer to Figure 5.2. The true marginal cost of the last unit produced is represented by the price
A) Pa.
B) Pb.
C) Pc.
D) Pf.
Answer: D
27) A market supply curve reflects the

A) external costs of producing a good or service.
B) external benefits of producing a good or service.
C) social costs of producing a good or service.
D) private costs of producing a good or service.
Answer: D
Topic: Private Cost
11
28) Which of the following conditions holds in an economically efficient competitive market
equilibrium?
A) The deadweight loss is positive but at a minimum.
B) Producer and consumer surplus are exactly equal in size.
C) There are no positive and no negative external effects from consumption and production.
D) The marginal benefit of the last unit produced and consumed is maximized.
Answer: C
29) A market demand curve reflects the

A) private benefits of consuming a product.
B) external benefits of consuming a product.
C) social benefits of consuming a product.
D) sum of private and social benefits of consuming a product.
Answer: A
12
Figure 5.3
30) Refer to Figure 5.3. The efficient output level is

A) Qm.
B) Qn.
C) Qo.
D) Qo - Qm.
Answer: B
31) Refer to Figure 5.3. The privately optimal output level is

A) Qm.
B) Qn.
C) Qo.
D) Qo - Qm.
Answer: A
2CE: Classic (1CE)- updated for 2CE
13
32) Refer to Figure 5.3. The size of marginal external benefits can be determined by
A) the demand curve D2.
B) D2 + D1 at each output level.
C) D2 - D1 at each output level.
D) the demand curve D1.
Answer: C
33) Refer to Figure 5.3. In the absence of any government intervention, the private market
A) underproduces by Qo - Qm units.
B) overproduces by Qo - Qm units.
C) overproduces by Qn - Qm units.
D) underproduces by Qn - Qm units.
Answer: D
34) Refer to Figure 5.3. The deadweight loss due to the externality is represented by the area
A) mso.
B) msn.
C) nso.
D) mtn.
Answer: B
14
35) Refer to Figure 5.3. At the competitive market equilibrium, for the last unit produced,
A) the size of the external cost is Pm - Po.
B) the size of the external benefit is Pm - Po.
C) the size of the external cost is Pn - Po.
D) the size of the external benefit is Pn - Po.
Answer: B
36) An externality refers to economic events outside a market.

Answer: FALSE
37) The private cost of a good or service is the cost borne by the producer.
Answer: TRUE
Topic: Private Cost
38) A market failure arises when an entire sector of the economy (for example, the airline industry)
collapses because of some unforeseen event.
Answer: FALSE
39) When there is a positive externality in a free market, too much of the good is produced and
consumed.
Answer: FALSE
15
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fate of ardent, generous souls like hers, if sometimes she was
betrayed into the many nets which greed, jealousy and base cunning
are always at hand to spread, for rendering nobler natures wretched.
Mademoiselle de Montpensier was, in one word, a true descendant
of her grandfather, Henri IV.
Lauzun, exiled as he had been, from Versailles, soon after passed
over to England, where he contrived to make himself useful by
conducting the queen and infant prince of James II. safely to France,
during the revolution of ’88. Louis, who received the dethroned
English king with great demonstration of sympathy and
magnificence, and gave the exiles his palace of St Germains for their
home, was thus again brought into direct communication with
Lauzun, who, being readmitted to royal favour, was created a duke;
but he never really regained the confidence of Louis.
On the occasion of the death of Mademoiselle, he presented
himself at the palace, attired in a magnificent mourning cloak. This
so angered Louis, that Lauzun ran a parlous risk of once more taking
the road to Pignerol.
All that remained of la Grande Mademoiselle’s possessions was
now proposed to be given to the illegitimate and legitimatized
children of the king; but precisely how to deal with Lauzun and his
wealth, acquired from Mademoiselle de Montpensier, was not so
apparent, since the question still remained open, whether
Mademoiselle had been his lawful wife. No one knew for certain, and
Madame de Maintenon conceived the ingenious idea of trying to
worm the true state of the case from Ninon, whom she knew had
been summoned to Mademoiselle’s dying bed, feeling persuaded
that Mademoiselle de L’Enclos was acquainted with it. She
accordingly begged her, in a little note very affectionately worded, to
come to Versailles.
Ninon was greatly tempted to reply that if Françoise desired to
speak to her, she might be at the trouble of coming to the rue des
Tournelles. All circumstances taken into account, and the generosity
with which she had treated Françoise’s little ways, it did not appear
to her that she was bound to wait upon the woman, merely because
she had lighted upon the lucky number in life’s lottery. Ninon,
however, was but a daughter of Eve. Curiosity was strong to see
how Madame Louis Quatorze lived in the lordly pleasure-house, and
forthwith she obeyed the summons.
Queen Maria Théresa’s surroundings and retinue had been
modest enough even to parsimony. Madame Louis Quatorze was
attended by a numerous guard, a train of pages, Swiss door-
keepers, and the rest; while her Court and receptions were as
magnificent as those of the king. Madame took herself very
seriously, and her deportment had become most majestic. To Ninon,
however, she unbent, and was simply the Françoise of old times.
She led her into her own richly furnished private boudoir, adorned
with a curious conglomerate of pictures and statuary, Christian and
pagan, where an enormous, life-sized figure of Christ, in carved
ivory, was neighboured by painted Jupiters and other Olympian
deities, in curiously heterogeneous fashion. There Françoise
embraced Ninon with quite a prodigality of affection. Suddenly,
however, her manner changed; she congealed into gravity and tones
of great solemnity, and Ninon saw the tapestry folds along the wall
quiver slightly. It occurred to her that one only, His Majesty Louis
XIV., could have any possible right to be present in that most private
apartment, and even then she felt the need of putting a strong
restraint upon herself and her foot, to prevent it from bestowing a
kick upon the tapestry. Then the truth began to come out, the
lamentable truth that Madame and the king were greatly perplexed
as to the best mode of dealing with the Duc de Lauzan, whose
possessions, made over to him by the Grande Mademoiselle, those,
that is to say, which he still held, were much wanted for the king’s
children. He had so many, as Madame de Maintenon pointed out.
That, admitted Ninon, was true enough, “but I will engage, you will
not be increasing the number,” she added. “What is the point of the
question?” It was whether Mademoiselle had really married Monsieur
de Lauzun.
The full significance of it all now dawned upon Ninon. Had
Mademoiselle not been his wife, it would be a comparatively simple
matter to compel a revocation of the gifts which the princess had
made him in the course of her life, in order that these should enrich
the children of de Montespan. No consideration was yielded to the
fact that, be Lauzun what he might, the gifts had been tokens of
Mademoiselle’s affection for him. Ninon preferred complete inability
to afford any trustworthy sort of information on this head, and
suggested applying for it to Madame de Fiesque, who might be
better instructed: “but,” continued Ninon, “supposing Mademoiselle
was not his wife, surely to publish the fact, would create a scandal
which His Majesty would consider paying too dear a price for the
estates of Auvergne and St Fargeau. Either she was Lauzun’s
wedded wife or—”
Here the chronicle goes on to relate: Mademoiselle de L’Enclos’
words were interrupted by a tremendous disturbance at the door,
occasioned by an altercation with the guards, of some person
endeavouring to force his way in. The voice was d’Aubigné’s, and
the next instant he reeled in, far gone in a state of intoxication, and
staggering to his sister, he gripped her by the arm and thrust her
back into the chair from which she had risen.
This chronicle goes on to relate a terrible scene, over which, for
the honour of human nature, some kind of veil may be allowed to
hang, lest veracious history has been embroidered by the ample
material fact has afforded. The family differences of private domestic
relations are frequently unedifying; but when it comes to the base
humiliating of a great monarch, one in whose very vices and
mistakes grace and virtue had been apparent, until the widow
Scarron crossed his path, pen may well refrain from detail, and
explain only that the intruder, d’Aubigné, had burst in upon his sister,
to reproach her for her treachery in the matter of inducing him to
enter St Sulpice. Taking advantage of the absence of his mentor and
alter ego, Santeuil, she had contrived to trap him by false promises
and misrepresentation into the hated place. His liberty for one thing,
and of all things prized by d’Aubigné, would not, she had said, be
curtailed; it had, however, been so entirely denied him, that when he
had attempted to leave, he had been unceremoniously “clapped,” as
he phrased it, “into a cellar,” and he had only escaped by wriggling
through an air-grating. To any one possessed of the faintest sense of
humour, the notion of making a monk of any sort of this wild harum-
scarum would have seemed too preposterous; but the sense, always
so lacking in Françoise d’Aubigné, allowed her to indulge in only too
many absurdities whose ending was disastrous; and in any case, the
notion of removing the incommoding one from the taverns and cafés
and other public resorts where he freely gave utterance to his
estimate of Madame Louis Quatorze, and notably of her newly
acquired saintliness, was dominant in her, and to be achieved at any
cost. She earnestly desired his conversion, possibly if only to silence
the hideous music of the ditty, whose refrain he was for ever
chanting in the streets, echoed by so many ribald tongues—
“Tu n’as que les restes,
Toi!
Tu n’as que nos restes!”
Since the chronicle goes on to tell that Louis the king was
concealed behind the tapestry during the interview of Madame and
her old friend Ninon, the appearance of d’Aubigné, with his string of
furious reproach, was of course singularly inopportune; and at last
the king, unable any longer to restrain his wrath, dashed aside the
concealing Gobelins, and white with anger, and his eyes blazing with
indignation, ordered the culprit’s arrest by the guards, and carrying
off to the Bastille. Confounded by the unexpected apparition,
d’Aubigné’s sober sense returned, and he promised everything
required of him with the humblest contrition, adding that if he might
suggest the homely proverb in that august presence, there was
nothing like washing one’s soiled linen at home.
The king’s silence yielded consent, and d’Aubigné was permitted
to depart from his brother-in-law’s presence a free man, on condition
of making St Sulpice his headquarters. It was at least preferable to a
lodging in one of the Bastille towers, he said, but any restraint or
treachery on the part of Françoise, or of Louis, in the way of his
coming and going into what he called that black-beetle trap of St
Sulpice, would be at once signalised. And thus the difficulty was
adjusted, a compromise being effected by appointing a certain Abbé
Madot to shadow the ways of d’Aubigné when he took his walks
abroad.
But for Ninon the malice of her old friend took on virulence, and it
was found later that Françoise charged her with having planned the
scandalous scene, in so far as bringing d’Aubigné into it; that she
had connived at his coming just at that moment. Yet exactly, except
for the king’s concealed presence, what overwhelming harm would
have ensued, is not apparent, and certainly for that situation, Ninon
could not have been responsible. Henceforth all shadow of
friendship between the two women died out, and enmity and
bitterness were to supervene when opportunity should be ripe.
CHAPTER XXIV
The Falling of the Leaves—Gallican Rights—“The Eagle of Meaux”—Condé’s

Funeral Oration—The Abbé Gedouin’s Theory—A Bag of Bones—Marriage
and Sugar-plums—The Valour of Monsieur du Maine—The King’s
Repentance—The next Campaign—La Fontaine and Madame de Sablière—
MM. de Port Royal—The Fate of Madame Guyon—“Mademoiselle Balbien.”
And time passed on—passed on. The brilliant century was in its sere
and yellow leaf, and one of the best and most amiable of the glorious
band, le Nôtre, the gardener par excellence, faded and died, to the
great grief of Louis, who dearly loved his company, and would walk
by his chair in the garden of Versailles, when the invalid’s limbs had
failed him. Ninon keenly felt the loss of the kindly friend, who had
been one of the party to Rome with Santeuil—who had nearly
missed the papal benediction on his hymns, as he always believed,
by his witticisms about the carp. And now the good canon was to die,
victim of a practical joke on the part of the young Duc de Condé, who
amused himself with emptying the contents of his snuff-box into his
guest’s glass of champagne. Unawares, Santeuil drained the glass;
and the hideous concoction produced a fit of such convulsive
sickness, that he died of it. Bitterly enough Condé repented, but that
did not bring back his friend.
About the time that the zenith of Louis’s power was attained, when
his very name was uttered on the bated breath of admiration, hatred
and terror—and the yoke of the widow Scarron had not yet
entangled him—and while the Doge of Genoa was compelled by
Duquesne to sue for mercy at the feet of the French monarch—
accused of complicity with the pirates of the Mediterranean—the
Court of Rome was compelled to yield to the demands of the Church
in France, in the matter of the régale. This right, which had ever
been the strength and mainstay of religious Catholic independence
in France, had fallen in later days somewhat into abeyance; and
when, some nine years earlier, it had been put into active force
again, the pope opposed it. To establish it on a firm footing was the
work of Bossuet, who set forth and substantiated with the bishops of
the dioceses of France the existing constitution of the Gallican
Church under the ruling of the four famous articles: 1. That
ecclesiastical power had no hold upon the temporal government of
princes. 2. That a General Council was superior to the pope. 3. That
the canons could regulate apostolical power and general
ecclesiastical usage. 4. That the judgment of the Sovereign Pontiff is
only infallible after the universal and general consent of the Church.
The pope and the Court of Rome had no choice but finally to
accept these propositions; but unpalatable as they were, they came
between the worse evil threatening Catholic Unity, of a schism such
as it had suffered in England under Elizabeth and Henry.
The splendid gifts of Bossuet place his memory on a lasting and
lofty eminence, as it placed him, living, in distinguished positions,
Bishop of Meaux, preacher at the Louvre, preceptor to the Dauphin.
From his profound theological learning welled forth the splendid
eloquence which thrilled the vast assemblages flocking to drink in his
orations. One of the most magnificent among these was that at the
obsequies of the great Condé, beginning—
“Cast your gaze around; see all that magnificence and piety has
endeavoured to do, to render honour to the hero: titles, inscriptions, vain
records of what no longer exists, the weeping figures around the tomb
and fragile images of a grief which Time, with all the rest, will bear away
with it, columns which appear to lift to high heaven their magnificent
testimony to him who is gone; and nothing is lacking in all this homage
but him to whom it is given.... For me, if it is permitted to join with the
rest in rendering the last duties beside your tomb, O Prince! noble and
worthy subject of our praise and of our regrets, you will live eternally in
my memory. I shall see you always, not in the pride of victory ... but as
you were in those last hours under God’s hand, when His glory was
breaking on you. It is thus I shall see you yet more greatly triumphing
than at Fribourg and at Rocroi.... And in the words of the best-beloved
disciple, I shall give thanks and say—‘The true victory is that which
overcometh the world—even our faith.’”
A noble purity of spirit and deep conviction inspired Bossuet’s

eloquence. His knowledge was limited by his Jesuit training, though
he studied anatomy at a later period, by the king’s desire, in order to
instruct the Dauphin in the science; but with science generally and
physics he was unacquainted. As a Jesuit he was opposed to
Jansenism and the Port-Royalists; but for long the gentle piety of
Fénelon retained the respect and admiration of Bossuet’s more fiery
spirit. Both these great men gave instruction at St Cyr, by the desire
of Madame de Maintenon and the king.
Time must indeed have passed lightly by Ninon; for once again, at
the age of eighty years, she inspired a young abbé, named Gedouin
—a distant relative on the maternal side—with deep fervent
admiration. Ninon at first believed that he was jesting with her, and
rebuked him severely; but it was a very serious matter on his part,
and though she told him of her fourscore years, he declared that it in
no way altered his sentiments. “What of that?” he said; “wit and
beauty know nothing of age,” and the Abbé Gedouin’s pleading,
which was not in vain, terminated Ninon’s last liaison with an
affectionate and endearing friendship. When he was rallied on his
conquest, the abbé’s rejoinder was that—
“Ah, mes amis, lorsqu’une tonne
A contenu d’excellent vin,
Elle garde un parfum divin
Et la lie en est toujours bonne.”
Monsieur de Lauzun, on the other hand, being now over sixty

years old, contracted a marriage with an English girl of sixteen. She
was so fearfully thin, that the Duc de St Simon, who was one of
Mademoiselle de L’Enclos’ cercle, said de Lauzun might as well
have wedded all the bones of the Holy Innocents Cemetery, where
the skulls and bones were piled in pyramids.
St Simon was a delightful conversationalist. He was the son of the
old favourite of Louis XIII. He could be very caustic with his
anecdotes. One night he greatly amused the company with an
account of the marriage of the son of the Grand Dauphin, the little
Duke of Burgundy. He was of the tender age when ordinary and
everyday little boys are occasionally still liable to chastisement by
their elders. The duchess to be, who was still very fond of her doll,
was presented on the occasion by the Queen of England with a very
elegantly trimmed shift, handed to her by the maids of honour on a
magnificently enamelled tray. In this garment she was attired, while
her youthful husband, seated on a footstool, was undressed in the
presence of the king and of all the Court. The bride, being put to bed,
the Duc of Burgundy was conducted in and also put into bed, beside
which the Grand Dauphin then took his seat, while Madame de Lude
took her place beside the young duchess. Then sugar-plums were
offered to the bride and bridegroom, who cracked them up with the
greatest enjoyment. After about a quarter of an hour, the Duc was
taken out of bed again, a proceeding which appeared greatly to
displease him, and he was led, sulking enough, back to the
antechamber, where the Duc de Berry, some two years his junior,
clapping him on the shoulder, told him he was not a bit of a man. “If it
had been me,” he added, “I should have refused to get out of bed.”
The king imposed silence on the little rascal’s rebellious counsel,
and placed the bridegroom back into the hands of his tutors,
declaring that he would not permit him to so much as kiss the tips of
his wife’s fingers, for the next five years to come. “Then, grandpapa,”
demanded the little brother, “why have you let them be married? It is
ridiculous.” It was all certainly something like it.
After that the child was placed for his instruction in the care of the
Abbé de Fénelon, whose rapid advancement at Court had been
attained by his lofty character and talents.
But Louis had far more affection for his illegitimate children than
for these, and aided by Madame de Maintenon’s intrigues, he finally
succeeded in securing a large portion of the heritage of la Grande
Mademoiselle for the Duc du Maine and the Duc du Vendôme; but
the brave spirit of heroes and conquerors he could not endow them
with, for all his desire. It was to no effect that he confided command
to them of his troops in Holland. The Duc du Maine specially
undistinguished himself. Just as the enemy was escaping scot-free,
he found he was hungry, and asked for a cup of bouillon to
strengthen him. “Charge! Charge, Monseigneur!” urged Villeroy’s
messenger, coming to him in a fever of excitement.
“Oh, well, patience,” replied the warrior; “my wing is not in order
yet.”
Finding no sort of response to his repeated messages, Villeroy
went in search himself of the prince, and found him in his tent, at his
confessor’s knees. The first duty of a good Christian, he said, was to
make his peace at such times with Heaven. So the religious
discipline of his governess and stepmother, the widow Scarron and
Madame de Maintenon, had borne fruit. It was of a different flavour
from the prayer of the brave servant of King Charles I.—Sir Edmund
Verney—before Edgehill: “Lord, Thou knowest how busy I must be
this day. If I forget Thee, do not Thou forget me.” And there was no
battle won or lost that day on the Dutch frontier, and Louis, when
they brought to Versailles news of the enemy’s safe retreat, was at a
loss to understand the situation; for no one cared, or dared, to tell
him the truth, until Lavienne, his valet-de-chambre in chief, in the
days of Louis’s amours, hazarded the observation that, after all,
proverbs could speak falsely, and that “Good blood could lie;” and
then he went on to add the other truths concerning Monsieur du
Maine. In the face of the fulsome praise following in the journals—
which lied as only journals know how—the king was overwhelmed
with grief and chagrin; and, beside himself, he broke his cane in a fit
of anger on the back of one of an unlucky servant, whom he
happened to detect surreptitiously eating a bit of marchpane. This
ebullition, creating the consternation of all the Court, just sitting down
to dinner, brought Madame Louis Quatorze and Père la Chaise upon
the scene. “Parbleu, mon père,” said the king, gradually regaining his
senses, “I have just chastised a wretched creature who greatly
merited it.”
“Ah!” gasped the confessor.
“And I have broken my cane on his back. Have I offended God?”
“No, my son, no,” replied the holy man. “It is merely that the
excitement may be harmful to your precious health.”
Fortunately the cane, being of slenderest rosewood, had easily
snapped.
Before the end of the next campaign, the redoubtable Duc du
Maine was recalled: d’Elbœuf hastened to say to him, making a
profound bow, “Have the goodness, Monseigneur, to inform me
where you propose entering on the next campaign.”
The duke turned, smiling, and extended his hand to d’Elbœuf,
whose ironical tones he had failed to perceive.
“Wherever it is,” added d’Elbœuf, “I should wish to be there.”
“Why?” demanded the duke.
“Because,” replied d’Elbœuf, after a silence, “at least one’s life
would be safe.”
Monsieur du Maine gave a jump, as if he had trodden on a
serpent, and went away without replying, not being better furnished
with wit than he was with valour.
And the autumn leaves of Ninon’s life were ever fast falling around
her. In her Château de Boulogne Madame de la Sablière passed
away, and la Fontaine, finding life a sad thing without her, quickly
followed her.
The Jesuit conception of religious faith, great as were its merits as
originated in the mind of Loyola, theoretically, and in its code drawn
up by his gifted successor, Lainez, had displayed its imperfections in
its practical working, as time passed. This was more apparent in
France even than elsewhere on the Continent; since there papal
authority was tempered by regulations which afforded wider scope to
thoughtful and devout minds ever occupied by the problem of final
salvation and its attainment.
“Two such opposed foes encamp them still
In man as well as herbs, grace and rude will,”
says Friar Lawrence, musing over his “osier cage,” of weeds and
flowers. There had been no time on Christian record that the
question had not exercised theologians, and when it had burnt into
fuller flame, fanned by the ardent soul of Luther, it spread through
Europe and was called the Reformation; but the spirit of it had been
ever present in the Church, and to endeavour to stamp out the
Catholic faith had, in Luther’s earlier days at all events, formed no
part of his desire. Yet scarcely had his doctrines formulated, than the
fanaticism and extravagance of the ignorant and irresponsible seized
upon them, and wrung them out of all size and proportion to fit their
own wild lusts and inclinations, “stumbling on abuse,” striving to
impose their levelling and socialistic views, and establish a
community of goods, and all else in common—even their wives,
though dispensing with clothing as a superfluity and a vanity
displeasing in Heaven’s sight. So Anabaptism ran riot in Germany
under John of Leyden and his disciples; while upon its heels Calvin’s
gloomy and hopeless tenets kept men’s minds seething in doubt and
speculation over grace and free-will, his narrow creed and private
enmity bringing Servetus to hideous and prolonged torture and death
at the stake, for heresy.
Stirred by the revolt of Protestantism on one side, and the claims
of Rome on the other, supported by the Jesuits, speculation gained
increased activity within the pale of the Catholic Church, animated
further by the writings of Jansenius, Bishop of Ypres, whose theories
on grace and the efficacy of good works were grounded mainly on
the viâ media, and it was the following of his opinions by the
illustrious students gathered at Port Royal which created the school
of Jansenists that included such names as Fénelon, Pascal, and so
many others, headed by the Abbé Arnauld, whose sister Angélique
was the Superior of the convent of Port Royal, and whose father, the
learned advocate, had been so stern an opponent to the Jesuits as
to have caused their expulsion from France in the reign of Henri IV.
Readmitted later, they found as firm an opponent in his son, who,
when still quite young, wrote a brilliant treatise against the danger of
Jesuit casuistry.
The convent of Port Royal des Champs was situated on the road
from Versailles to Chevreuse, and hard by, in a farmhouse called La
Grange, “Messieurs de Port Royal,” as the Jansenist priests and
students were called, made their home. They had for their friends the
most distinguished men, scholars and poets of the time; Boileau,
Pascal, Racine were of the band. The place itself is now scarcely
more than a memory. It was then, wrote Madame de Sévigné, “Tout
propre à inspirer le désir de faire son salut,” and hither came many a
high-born man and woman of the world to find rest and peace. Now
a broken tourelle or two, the dovecote and a solitary Gothic arch
reflecting in a stagnant pool, are all that remain in the sequestered
valley, of the famous Port Royal, which early in the next century was
destroyed by royal decree, when its glory had departed, following the
foreordained ruling of all mundane achievement; and the
extravagance of the convulsionnaires and later followers of
Jansenism was stamped out by the bull “Unigenitus” against heresy.
Arnauld’s heart was deposited at Port Royal at his death, with the
remains of his mother and sisters. Louis XIV., as ever his wont had
been to genius and intellect, had invited him “to employ his golden
pen in defence of religion;” but that was before the great king came
under the direction of Madame de Maintenon and Père la Chaise.
But that Madame and her Jesuit confessor would long continue to
regard the Port-Royalists with favour was not possible. Intolerance
succeeded to patronage, and Fénelon was deported to Cambrai,
sent afar from his friend, Madame Guyon, whose order of arrest and
incarceration in the Château de Vincennes was issued very shortly
after Mademoiselle de L’Enclos’ interview with Madame Louis
Quatorze in her Versailles sanctum.
In her dismay, Madame Guyon contrived to fly to Ninon, seeking
protection; but it was of no avail. Without a moment’s delay, Ninon
drove to Versailles, and sought an interview with Madame de
Maintenon on behalf of Madame Guyon. The interview was not
accorded. Nanon—the Nanon of Scarron days, but now
“Mademoiselle Balbien”—was delegated to speak with her.
—“Mademoiselle Balbien,” who gave Ninon to understand that she
was to be addressed no longer as “tu” (“thou”), but as “vous” (“you”),
that the question of Madame Guyon could not even be entered upon,
and under threat of being herself again lodged in the Répenties she
was bidden to depart.
Ninon was at first amazed at this strange reception and insolent
behaviour of mistress and maid. But she was not left long in
perplexity, since “Mademoiselle Balbien” permitted the truth to
escape her prim lips, that Madame de Maintenon had credited Ninon
with the design of introducing d’Aubigné into the boudoir in the
middle of that memorable interview, with the intention of disgracing
Madame in the estimation of the king. That Ninon was not made of
the stuff for this, it is almost superfluous to say. Any sins she might
have to answer for, did not include the hypocrisy with which Madame
de Maintenon had clothed herself about, and almost equally
needless is it to repeat that by no possible means the concealed
presence of the king could have been known by any but the two
most immediately concerned. It could be but a matter of their dual
consciousness.
For six years Madame Guyon remained in prison. Monsieur
Fénelon’s Maximes des Saints was condemned by the Court of
Rome, and the bigotry and hypocrisy ruling Versailles swelled daily.
Molière, alas! was no more, to expose the perilous absurdities and
lash them to extinction; but the comedy of La Fausse Prude,
produced some weeks later at the Italiens, was a prodigious
success. The world greatly enjoyed and admired the fitting of the
cap, built upon the framework supplied by one who had befriended
and sheltered under her own roof the forlorn young orphan girl,
Françoise d’Aubigné.
CHAPTER XXV
The Melancholy King—The Portents of the Storm—The Ambition of Madame Louis

Quatorze—The Farrier of Provence—The Ghost in the Wood—Ninon’s
Objection—The King’s Conscience—A Dreary Court—Racine’s Slip of the
Tongue—The Passing of a Great Poet, and a Busy Pen Laid Down.
The disastrous thrall holding Louis XIV. to Madame de Maintenon,

was an endless theme of wonder and speculation among his
subjects. Very few of them ascribed it to pure unadulterated love and
affection for his old wife—for she was his elder by three years—while
Louis himself was now at an age when the enthusiasm of life slows
into some weariness and languor as it recognises the emptiness and
futility of all mundane things. There were times when he was lost in
brooding thought, and he would wander about his splendid galleries
and salons and magnificent gardens, absorbed, if his dull aspect
expressed the inward spirit, in melancholy reflection. The glory had
departed of his earlier ruling, leaving the nation loaded with debt.
The price had to be paid for those brilliant victories of long ago, and
accumulation of debt on the many later reverses cried for settlement.
The provinces had been deeply impoverished by the absenteeism of
their overlords, whose presence the Grand Monarque had for so
many years required to grace Versailles, attired in their silks and
velvets, sweeping their plumed, diamond-aigretted hats to the
polished floors, bowing and crowding to gaze at the sublime process
of His Majesty’s getting up, promenading with the great ladies
among the fountains and bosquets of Trianon, spending the heaven-
bestowed hours in the sweetness of doing nothing but manipulate
their rapier-hangers and snuff-boxes; while Jacques Bonhomme,
away down in Touraine and Perigord and Berri, and where you will in
the length and breadth of fair France, was sweating and starving to
keep those high-born gentlemen supplied with money in their purses
for the card-tables, and to maintain their lackeys and gilded coaches
in the sumptuous style which was no more than Louis required of the
vast throng. It was in its way an unavoidable exaction, since the few
of the nobility who remained on their own estates had done so at the
peril of incurring the severe displeasure of the king, the Sun-King—
Le roi le veut—whose centre was Versailles.
And still the full time was not yet when all this should be changed.
Even for Louis, the absolute reckoning day was but shadowing in.
“After us the deluge”: that prophetic utterance was spoken long after
Louis was borne to his rest in St Dénis, but when the records of his
life tell of those long-brooding, silent pacings amid the grandeur and
treasures of his splendid palace, comes the question if from afar off
there did not sound the murmur of the flood that was to break some
hundred years hence, if in some dim yet certain way the cloud no
bigger than a man’s hand was not apparent to his introspective gaze,
for as yet the domestic misfortunes of his latest years had not
befallen, death had not robbed him of his heir, and the rest dear to
him; but discontent, not unmingled with contempt, seethed round the
proud King of France. How were the mighty fallen, and how great the
political mistake which indissolubly linked the ambitious woman,
clothed about in her new-found meretricious garb of piety, with his
great responsible destiny—Louis, Dieudonné and elect ruler.
Nor did it stop at the secret, sufficiently open and acknowledged,
of his marriage with Scarron’s widow. The fear was well enough
founded that she was moving earth, and if possible all heaven, to be
Queen of France; but righteousness had small part in the endeavour,
and trickery and chicanery failed to prevail to this crowning end upon
the king’s consciousness and conviction. Pride, and the sense of his
irrevocable bondage, mingled with the poison of the hypocritical
devoutness instilled into him by his wife and her confessor, kept him
silently deferential to this woman, spoiled by prosperity; but she
herself says that all her endeavours to amuse him or bring a smile to
his lips, failed. He had—mildly construing the homely proverb—put
off from shore with a person—more or less mentionable—and he
was bound to sail to land with her.
The diablerie at work was untiring, and had many strings, and
there seem, small, if any, question that to the genius of the
Marseilles merchant’s wife, formerly Madame Arnoul, the curious
tale of the Farrier of Provence is due.
From extreme southward of France came this poor man, who said
he was shoemaker to all the horses of his grace, Monsieur
d’Épernon, at his country mansion near Marseilles—to speak to the
king’s Majesty upon a subject concerning him alone.
The major of the guards to whom he explained his wish, told him
such an interview was impossible. A letter of audience was first
required, and that was to be had only with utmost difficulty. Besides,
he added, the king did not receive all the world. The man objected
that he was not all the world. “Quite so,” said the guard. “By whom
are you sent?”
“By Heaven.”
“Ah!”—and all the bodyguard went into fits of laughter at this reply.
The man stoutly insisted, however, that he had most important
matters to disclose to “the Master of ‘Vesàilles,’” as he phrased it. At
this point of the conversation, the Marshal de Torcy, Colbert’s
nephew, happened to come by. Overhearing what had passed, he
directed that this emissary of Heaven should be conducted to the
ministers, just then sitting in council. They, impressed with the
honest and earnest air of the farrier, informed the king of the affair.
Listening with grave attention to their representation, Louis
commanded the man to be brought before him. Alone with the king,
the farrier unfolded his tale. It was fantastic enough. He was
returning, he said, from the duke’s stables, where he had been
shoeing some of the horses—to his own home, in a hamlet situated
not far off, and was passing through a wood. It was night, and quite
dark; but suddenly he found himself enfolded in a brilliant light, and
in the midst of it stood a tall woman, right in his path. She addressed
him by his name, and bade him repair immediately and without an
instant of delay to Versailles, where he was to tell the king that he
had seen the spirit of the dead queen, his wife, and that she, the
ghost of Maria Théresa, commanded him in the name of heaven, to
make public the marriage he had contracted, which hitherto he had
kept secret.
The king objected that the man had probably been the victim of
hallucination. “I thought so too at first,” replied the farrier, “and I sat
down under an elm-tree to collect myself, believing I had been
dreaming; but two days afterwards, as I was passing the same spot,
I again saw the phantom, who threatened all sorts of terrible
misfortunes to me and mine if I did not immediately do what it had
directed.”
Then the king had another doubt; and asked him whether he was
not trying to impose upon him, and had been paid to carry out the
affair.
The man replied that in order for His Majesty to be convinced that
he was no impostor, he should wish him to reply to one question he
had to ask. “Have you,” he went on, when the king willingly
consented to this, “have you ever mentioned to living soul a syllable
about the midnight visit the late queen-mother paid you in the
Château de Ribeauvillé years ago?”
“No,” said Louis, with paling lips, “I never confided it to anyone.”
“Very well; the ghost in the forest bade me remind you of that visit,
if you expressed any doubt of my good faith; and,” added the man,
as the king said it was very strange, “before disappearing, the tall
white woman uttered these words—‘He must obey me now, as he
then obeyed his mother.’”
The king, in an access of dismay and perplexity, sent for the Duc
de Duras, and related to him in confidence what had passed during
the interview with the peasant. The duke, who was an intimate friend
of Ninon, told her the wondrous tale.
It took no time for her to arrive at the conclusion that Madame
Louis Quatorze and her faithful card-divining friend and fortune-teller,
Madame Arnoul, were at the bottom of the business, and under
promise on the duke’s part of inviolable secrecy, she told him of the
adventure in the Vosges and the very conspicuous part she had
played in it, actuated by her enmity towards de Montespan. The
farrier, she did not doubt, was honest enough; but, simple and
credulous, he had been made the tool of the two women—an easy
prey to Madame Arnoul, who, living at Marseilles, had seen him, and
reckoned him up as suitable for her design.
The duke was of opinion that there was no doubt Ninon’s solution
of the mystery was correct, and he added that, this being the case, it
was her duty to inform the king of it—“For who knows,” said Duras,
“that he may not be weak enough to obey the ghost’s behests, and
disgrace himself and his throne in the eye of all Europe and the
universe, by seating the Maintenon upon it.” It was a most serious
matter—most serious.
Ninon, however, shrank from the suggestion. She was a woman of
courage; but recent experience had taught her the lengths of malice
to which her old friend Françoise could go, and she had no mind to
measure weapons with her again. To make clean confession of the
affair to the king, was simply to bring down upon herself all the
thunderbolts of the hatred of the woman whose ingenuity was never
at fault in plausibility, and the finding the way to retain the kings good
graces at no matter what cost to anyone.
Ninon saw a far better plan than sacrificing herself for the
destruction of the scheme. She begged the duke not to compromise
her to the king; but to represent to him the advisability of sending
competent and trusted persons to the Ribeauvillé château,
accompanied by the duke himself, and there to sound and search
the recesses and panelling of the haunted room and the adjacent
one she indicated, and little more would be necessary to prove to His
Majesty that he had been duped.

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Test Bank for Microeconomics Canadian 2nd

Edition Serletis Hubbard Brien Childs

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Microeconomics, Second Canadian Edition (Hubbard)

5.1 Externalities and Economic Efficiency

2) Reached in 2015, the Paris agreement was intended to

5) Which of the following is a source of market failure?

6) What is a market failure?

8) Which of the following activities creates a negative externality?

9) A negative externality exists if

11) Private costs

12) What is a "social cost" of production?

14) Which of the following is an example of a positive externality?

15) A positive externality causes

Figure 5.2 shows a market with a negative externality.

21) Refer to Figure 5.2. The efficient output level is

27) A market supply curve reflects the

29) A market demand curve reflects the

30) Refer to Figure 5.3. The efficient output level is

31) Refer to Figure 5.3. The privately optimal output level is

36) An externality refers to economic events outside a market.

The Falling of the Leaves—Gallican Rights—“The Eagle of Meaux”—Condé’s

A noble purity of spirit and deep conviction inspired Bossuet’s

Monsieur de Lauzun, on the other hand, being now over sixty

The Melancholy King—The Portents of the Storm—The Ambition of Madame Louis

The disastrous thrall holding Louis XIV. to Madame de Maintenon,

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