A. elected officials will act selflessly for the good of society and ignore their own self interest
B. the managers of government agencies are trying to maximize the profit of their agency and they ignore the implications that this has on other departments
C. the optimal level of public goods may be too expensive for the society to produce
D. the measurement of social damages and benefits is difficult and imprecise
Markets, Efficiency And The Public Interest
If some gain and some lose as the result of a proposed change and it can be demonstrated that the value of the gains would exceed the value of the losses then the change is said to be ?
A. technically efficient.
B. inefficient.
C. potentially efficient
D. unequivocally Pareto optimal
A person will continue to pursue an activity up to the point where ?
A. Marginal benefit equals marginal damage cost
B. marginal benefits equals marginal social cost
C. marginal benefit equals marginal private cost
D. marginal social cost equals marginal external cost
Externalities are a problem only if ?
A. decision makers do not take them into account
B. all firms are perfectly competitive
C. the externalities are negative
D. all firms are monopolistic
The statement everything affects everything else reflects the principle behind ?
A. efficiency analysis
B. partial equilibrium analysis
C. general equilibrium analysis
D. equity analysis
imperfect competition occurs ?
A. When firms are not profit maximisers
B. When firms have some control over price and competition
C. When the consumption of the good involves an external benefit
D. Whenever firms are losing money.
The whole class of goods that will be under produced or not produced at all in a completely unregulated market economy are referred to as ?
A. Pareto goods
B. public goods
C. private goods
D. free goods
The optimal level of provision of public goods is where society total willingness to pay per unit is equal to the ?
A. variable cost of producing the good
B. average cost of producing the good
C. marginal cost of producing the good
D. total cost of producing the good
The Coase theorem states that ?
A. public goods should be produced up to the point where the additional benefit received by society equals the additional cost of producing the good
B. under certain conditions, private parties can arrive at the efficient solution without government involvement
C. the private sector will fail to produce the efficient amount of a public good because of the free-rider problem.
D. if there are external costs in production the government must intervene in the market to assure that the efficient level of output is produced
Which of the following information forms available to the marketing manager can usually be accessed more quickly and cheaply than other information sources ?
A. Marketing intelligence
B. Marketing research
C. Customer profiles
D. Internal databases