ECON 201 Ch 7, 10, 11

Given the following market information, how much Total Surplus would be generated at the market-clearing price?

In a free market, without government intervention, which of the following do you expect to be under-supplied?

• Private Goods

• Public Goods

• Club Goods

• Common Resources

In a free market, without externalities, which of the following do you expect to be produced and consumed in an efficient manner?

• Private Goods

• Public Goods

• Club Goods

• Common Resources

In a free market, which of the following do you expect to be under-consumed?

• Private Goods with negative externalities

• Public Goods

• Club Goods

• Common Resources

• Private Goods with positive externalities

In a free market, which of the following do you expect to be over-produced?

• Private Goods with negative externalities

• Public Goods

• Club Goods

• Common Resources

• Private Goods with positive externalities

In the absence of transaction costs, private property rights in a Coasian bargain can be used to solve for:

• Private Goods with negative externalities

• Public Goods

• Club Goods

• Common Resources

• Private Goods with positive externalities

Total surplus for a single transaction can be calculated as

• TS = PS - CS

• TS = WTP - WTA

• TS = WTP + WTA

• TS = PS + CS

Transaction costs that arise due to the time it takes to negotiate in meetings are related to _____.

• triangulation

• trust

• transfer

• top-up

Transaction costs that arise due to security and policing fees are known as _____.

• triangulation

• trust

• transfer

• top-up

Transaction costs that arise due to the time it takes for buyers and sellers to locate each other are related to _____.

• triangulation

• trust

• transfer

• top-up