When markets fail to allocate resources efficiently, the ultimate source of the problem is usually ? A. government regulation B. that prices are not low enough so firms over produce C. that prices are not high enough, so people overconsumeD.…
Which of the following are potential solutions to the problem of air pollution? A. Grant right of the clean air to citizens so that firms must purchase the right to pollute B. Auctions off pollution permits. C. Regulate the amount…
The Tragedy of the Commons is a parable that illustrates why? A. common resources are overconsumed B. public goods are underproduced C. private goods are under consumed D. natural monopolies overproduce goods.
When government employ cost-benefit analysis to help them decide whether to provide a public good, measuring benefits is difficult because ? A. there are no benefits to the public since a public good is not excludable B. the benefits are…
Suppose that requiring motorcycle riders to wear helmets reduces the probability of a motorcycle fatality from 0.3 percent to 0.2 percent over the lifetime of a motorcycle rider and that the cost of lifetime supply of helmets is Rs5000. It…
Which of the following is an example of a public good ? A. hot dogs at a picnic B. Whales in the oceanC. national defense D. apples on a tree in a public park
Suppose each of 20 neighbours on street values street repairs at €3000 the cost of the street repair is €40,000 which of the following statements is true ? A. it is efficient for the government to tax the resident €2,000…
A common resource is ? A. not rival but excludable B. both rival and excludableC. rival but not excludable D. neither rival nor excludable
A private good is ? A. rival but not excludable B. not rival but excludableC. both rival excludable D. neither rival nor excludable
If one person’s consumption of a good diminishes other people’s use of the good, the good is said to be ? A. rival B. a good produced by a natural monopoly C. a common resource D. excludable