Worksheets3.1.5.4 and 4.1.8.4 Positive Externalities of Consumption
Total questions: 9
Worksheet time: 5mins
Name
Class
Date
1.
What does E show?
a)
MSB
b)
MPB
c)
MPB=MSB
2.
What does F show?
a)
MPB=D
b)
MPB=MSB
c)
MSB
3.
What does D show?
a)
MSC=MPC
b)
MPC
c)
MSC
d)
Something else
4.
What does P show?
a)
Free market price
b)
Original price
c)
New price
d)
Social market price
5.
Q to Q 1 shows...
a)
the under consumption of merit goods
b)
the over production of merit goods
c)
the over production of demerit goods
d)
the under consumption of demerit goods
6.
The gap between curves E and F shows...
a)
External benefits
b)
External costs
7.
Third-parties include any individual, organisation, property owner, or resource
a)
that is indirectly affected
b)
that is directly affected
c)
that is not indirectly affected
d)
that is not directly affected
8.
The most direct way to increase the supply of merit goods is through ...
a)
Increasing subsidies
b)
Increasing taxes
c)
Decreasing subsidies
d)
Decreasing taxes
9.
If the price of merit goods decrease, demand for goods which increase positive externalities...
a)
will rise
b)
will remain unchanged
c)
will fall
100 %
