Question 1

If a change passes the cost-benefit test, then

Accepted Answer

A) it is a Pareto improvement. 
B) it may be a Pareto improvement. 
C) it is not a Pareto improvement. 
D) total surplus is maximized. 
A) it is a Pareto improvement. 
B) it may be a Pareto improvement. 
C) it is not a Pareto improvement. 
D) total surplus is maximized.

Question 2

Governments can eliminate market failure due to an imperfectly competitive market by

Accepted Answer

A) changing the market structure, for example by eliminating monopoly protection. 
B) having the government own the monopoly. 
C) imposing regulations that reduce prices. 
D) All of the above. 
A) changing the market structure, for example by eliminating monopoly protection. 
B) having the government own the monopoly. 
C) imposing regulations that reduce prices. 
D) All of the above.

Question 3

A common resource is best described as a resource where

Accepted Answer

A) there is a positive externality in consumption. 
B) there is a negative externality in consumption. 
C) there is a positive externality in production. 
D) there is a negative externality in production. 
A) there is a positive externality in consumption. 
B) there is a negative externality in consumption. 
C) there is a positive externality in production. 
D) there is a negative externality in production.

Question 4

In the case of a good that has no exclusion and no rivalry, private markets fail because

Accepted Answer

A) of free-ridership. 
B) this is a natural monopoly. 
C) profit is driven down to zero. 
D) the quantity produced will exceed the social optimum. 
A) of free-ridership. 
B) this is a natural monopoly. 
C) profit is driven down to zero. 
D) the quantity produced will exceed the social optimum.

Question 5

Which of the following is likely protected by copyright?

Accepted Answer

A) Your recipe for chocolate cake 
B) Your autobiography 
C) The color scheme for your house 
D) The names of your children 
A) Your recipe for chocolate cake 
B) Your autobiography 
C) The color scheme for your house 
D) The names of your children

Question 6

Which of the following is an alternative to patents that still encourages research?

Accepted Answer

A) The government funding research by firms. 
B) Offering a prize for discovery. 
C) Government grants to universities. 
D) All of the above. 
A) The government funding research by firms. 
B) Offering a prize for discovery. 
C) Government grants to universities. 
D) All of the above.

If a change passes the cost-benefit test, then

Governments can eliminate market failure due to an imperfectly competitive market by

A common resource is best described as a resource where

In the case of a good that has no exclusion and no rivalry, private markets fail because

Which of the following is likely protected by copyright?

Which of the following is an alternative to patents that still encourages research?

Introduction

Supply and Demand

Empirical Methods for Demand Analysis

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Global Business

Filters

Exam 16: Government and Business

If a change passes the cost-benefit test, then

Governments can eliminate market failure due to an imperfectly competitive market by

A common resource is best described as a resource where

In the case of a good that has no exclusion and no rivalry, private markets fail because

Which of the following is likely protected by copyright?

Which of the following is an alternative to patents that still encourages research?

Introduction

Supply and Demand

Empirical Methods for Demand Analysis

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Game Theory and Business Strategy

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Global Business

Filters