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 goodsB. public goods C. private goods D. free goods
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 statement everything affects everything else reflects the principle behind ? A. efficiency analysis B. partial equilibrium analysisC. general equilibrium analysis D. equity analysis
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
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 costC. marginal benefit equals marginal private cost D. marginal social cost equals marginal…
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.…
Markets fail to produce an efficient allocation of resources, but government also fail because ? 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…
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…
If a large number of individuals are affected by an external benefit, private bargaining will not work because of ? A. non-rivalryB. the free-rider problem C. the Coase theorem D. the fallacy of composition
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 utilityB. non-rival in consumption C. congestible in consumption D. non-excludable