Satellite television subscription and television detection devices are ways in which broadcasting companies address the ________ problem? A. externality B. market imperfection C. deadweight burdenD. free rider

A good example of a public good is ? A. public transport B. the national health serviceC. national defence D. rail transport

Market failure may arise because of ? A. imperfect competition B. taxation C. externalities D. missing marketsE. all of the above

If my neighbour burns garden waste causing my house to fill with smoke this is an example of ? A. a production externality B. a second-best solution C. transaction costsD. a consumption externality

A competitive equilibrium is Pareto-efficient because ? A. Producers are price takers B. consumers and producers face the same prices C. marginal costs and benefits are equal D. prices equal marginal cost and benefitE. All of the above

In the insurance industry, high-risk customers are more likely to take out insurance. This is an example of ? A. moral hazard B. risk aversionC. adverse selection D. a poor gamble

In Nash equilibrium each player chooses the best strategy ? A. Assuming other players move first B. dominated by the other playersC. given the strategies of other players D. that is a credible threat

When a market is contestable, incumbent firms must __________ to avoid the entry of new competitors? A. behave like competitive firms B. agree to act together C. differentiate their products D. practice price discrimination

All of the following are types of imperfect competition except ? A. monopolistic competition B. oligopoly C. monopolyD. unfair competition

Which of the following is the government most likely to subsidies ? A. Negative externaliesB. Positive externalities C. Monopolies D. Oligopolies