A. raising the price of X.
B. production less X
C. Producing more X
D. Increasing the cost of producing X
Markets, Efficiency And The Public Interest
The total cost to society of producing an additional unit of a good or service is the ?
A. marginal damage cost
B. marginal social cost
C. marginal private cost
D. marginal external cost
When you consume good Q, not only do you benefit form consuming the good but other people benefit from your consumption as well, if firms produce good Q where P = MC, firms will be producing ?
A. less than the efficient level of output
B. more than the efficient level of output
C. so that consumer surplus is zero
D. the efficient level of output
The government increase the minimum wage. The National Association of Fast Food Restaurants hires you to determine the impact that this higher minimum wage will have on it industry. This is an example of ?
A. industry equilibrium analysis
B. specific equilibrium analysis
C. partial equilibrium analysis
D. general equilibrium analysis
The conclusion that free, unregulated markets will produce an efficient outcome breaks down if ?
A. households do not have perfect information
B. firms are not price takers in input markets
C. firms are not price takers in the output market
D. all of the above
Private goods are ?
A. non-rival in consumption and their benefits are nonexcludable:
B. rival in consumption and their benefits are excludable
C. rival in consumption and their benefits are non-excludable
D. non-rival in consumption and their benefits excludable
An example of public good is ?
A. a beautifully landscaped lawn.
B. preservation of wetlands
C. a public utility.
D. a book
If one person’s enjoyment of the benefits of a good does not interfere with another’s consumption of it, the good is said to be ?
A. limitless in utility
B. non-rival in consumption
C. congestible in consumption
D. non-excludable
If a large number of individuals are affected by an external benefit, private bargaining will not work because of ?
A. non-rivalry
B. the free-rider problem
C. the Coase theorem
D. the fallacy of composition
The idea that when externalities are present private parties can arrive at the efficient solution without government intervention under certain circumstance is known as ?
A. The coase theorem
B. Arrow’s impossibility theorem
C. the drop -in-the bucket problem.
the free rider problem