англ 51-100

Government can correct a positive externality by using                    , which result in a                       market output and a                market price.

• Corrective subsidies to suppliers, larger, lower

• Corrective taxes, smaller, lower

• Corrective subsidies to consumers, larger, lower

• Corrective taxes, smaller, higher

• The length of the text

Externalities are caused by:

• All of the above.

• Poorly defined property rights, resulting in disputes.

• The lack of enforcement of existing property rights.

• The absence of property rights

• Using guessing strategies.

A good whose benefits are rival in consumption and for which exclusion of those who refuse to pay is relatively easy is called a:

• Private good.

• Rival good.

• Public good.

• Normal good

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A good that provides benefits to all members of a community as soon as it is made available to any one member is called a:

• Pure public good

• Rival good.

• Normal good.

• Private good.

• Normal product.

Which of the following is not true of public goods?

• A system of voluntary financing of the public good can easily be established by those that benefit from the good.

• Consumers cannot easily be excluded from the benefits of the good.

• Once the good is provided to one member of a community, it can be provided to each additional member at zero marginal cost.

• Public goods are not rival in consumption

The marginal social benefit of a public good:

• Is the sum of the individual marginal benefits enjoyed by all consumers.

• Is the difference between the marginal benefit and marginal cost.

• Is the marginal social benefit less the marginal social cost of a private good.

• Is the market demand curve for the public good.

• Is the marginal benefit less the marginal cost of a private good.

If at the level of output where MR = MC the market price is less than a competitive firm’s AVC:

• The total fixed-cost loss exceeds the operating loss and the firs will shut down.
  
  

• The variable-cost loss is less than the fixed-cost loss and the firm will continue to operate in the short run.

• The firm can minimize losses by producing where MR = MC.

• The firm can minimize losses by raising prices.
  

• The firm can minimize losses by producing goods.

The market system produces                           pure public goods.

• No

• Excess quantities of

• Insufficient quantities of

• Just the correct quantity of

• Insufficient qualities

Market failure results from all but one of the following:

• Profits that are too low

• The lack of information

• Inaccurate information

• The absence of property right

• The lack of goods

Social regulation refers to:

• Government intervention in markets to achieve certain social g such as product and occupational safety.

• Corrective taxes and subsidies.

• Specific antitrust statutes.

• Government's "big brother" attempt to interfere with the efficient functioning of the free enterprise system.

• Corrective subsidies.