Inefficient outcomes can arise in markets for public goods because: A) too much of an exclusive good is produced. B) too little of an exclusive good is produced. C) too much of a nonexclusive good is produced. D) too little of a nonexclusive good is produced. ANSWER D
Date: September 9th, 2020
Human capital theory suggests that everyone’s income reflects individual choices about investments in education and training. Indicate whether the statement is true or false ANSWER T
Date: September 9th, 2020
Gold buyers are located in New York and Zurich. If the price of gold is $400 an ounce, the worldwide demand for gold is 10,000 ounces. Also, the price elasticity of demand for gold in New York and Zurich are -3 and -2 respectively. If the slope of each demand curve in New York is […]
Date: September 9th, 2020
Suppose a paper mill emits noxious odors that represent a negative externality for people living near the plant. If the plant managers ignore these external effects on their neighbors, what is the efficiency character of the resulting market outcome? A) The plant generates too much paper due to incomplete information. B) The plant generates too […]
Date: September 9th, 2020
Marginal profit is equal to A) marginal revenue minus marginal cost. B) marginal revenue plus marginal cost. C) marginal cost minus marginal revenue. D) marginal revenue times marginal cost. E) marginal revenue divided by marginal cost. ANSWER A
Date: September 9th, 2020
The price elasticity of demand is -1.5. The price elasticity of supply is 1.5. The fraction of a specific tax that is borne by producers is ________. A) 0 B) 0.25 C) 0.5 D) 0.75 E) 1 ANSWER C
Date: September 9th, 2020
If one of the agents in an Edgeworth Box has monopoly power and maximizes profit as the sole seller, then the economic outcome is: A) inefficient because the monopoly has no incentive to be technically efficient. B) inefficient because the monopoly produces less than the optimal amount of output. C) Both A and B are […]
Date: September 9th, 2020
When the TR and TC curves have the same slope, A) they are the furthest from each other. B) they are closest to each other. C) they intersect each other. D) profit is negative. E) profit is zero. ANSWER A
Date: September 9th, 2020
Consider a good whose own price elasticity of demand is 0 and price elasticity of supply is 1. The fraction of a specific tax that will be passed through to consumers is ________. A) 0 B) 0.25 C) 0.5 D) 0.75 E) 1 ANSWER E
Date: September 9th, 2020
The view of poverty embraced does not have a direct bearing on what public policies ought to be pursued. Indicate whether the statement is true or false ANSWER F
Date: September 9th, 2020
