Question 1

What is the term for the economic doctrine that holds that an economy works best with the minimum amount of government intervention?

Accepted Answer

A) Perfect competition. 
B) Productive efficiency. 
C) Producers' preferences. 
D) Laissez-faire. 
A) Perfect competition. 
B) Productive efficiency. 
C) Producers' preferences. 
D) Laissez-faire.

Question 2

a)Give the definition of "externality" and indicate why externalities can result in a failure to achieve equality between social marginal cost and social marginal benefit.Demonstrate your answer with a graph showing external costs.
b)What are the 3 reasons why governments decide to provide quasi-public good?

Accepted Answer

(a)Externalities are the benefits or cos

Question 3

-Refer to the graph above to answer this question.What is the equilibrium market price?

Accepted Answer

A) 0a. 
B) 0b. 
C) 0c. 
D) 0d 
A) 0a. 
B) 0b. 
C) 0c. 
D) 0d

Question 4

Which of the following products are non-rival?

Accepted Answer

A) Education services. 
B) Water supply. 
C) Private health. 
D) Military defence. 
E) Postal services. 
A) Education services. 
B) Water supply. 
C) Private health. 
D) Military defence. 
E) Postal services.

Question 5

A market is productively efficient if the price of a product equals the minimum average cost.

Accepted Answer

A) True 
 B)False

Question 6

In what way is the market system costless?

Accepted Answer

A) Public goods are not sold but are provided free of charge. 
B) It does not require the costly presence of bureaucrats to coordinate it. 
C) External costs are generally very small in the market system. 
D) Many services,like television programming,are provided free of charge by the market. 
A) Public goods are not sold but are provided free of charge. 
B) It does not require the costly presence of bureaucrats to coordinate it. 
C) External costs are generally very small in the market system. 
D) Many services,like television programming,are provided free of charge by the market.

Question 7

State five benefits of the competitive market.

Accepted Answer

The five benefits of a competi

Question 8

Which of the following products are non-excludable?

Accepted Answer

A) Education services. 
B) Water supply. 
C) Private health. 
D) Lighthouse. 
E) Postal services. 
A) Education services. 
B) Water supply. 
C) Private health. 
D) Lighthouse. 
E) Postal services.

Question 9

-Refer to the above graph to answer this question.What is the value of the external costs per unit?

Accepted Answer

A) $10. 
B) $20. 
C) $30. 
D) $40. 
E) $60. 
A) $10. 
B) $20. 
C) $30. 
D) $40. 
E) $60.

What is the term for the economic doctrine that holds that an economy works best with the minimum amount of government intervention?

-Refer to the graph above to answer this question.What is the equilibrium market price?

Which of the following products are non-rival?

A market is productively efficient if the price of a product equals the minimum average cost.

In what way is the market system costless?

State five benefits of the competitive market.

Which of the following products are non-excludable?

-Refer to the above graph to answer this question.What is the value of the external costs per unit?

The Economic Problem

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

Monopoly

Imperfect Competition

The Factors of Production

International Trade

Filters

Exam 9: An Evaluation of Competitive Markets

What is the term for the economic doctrine that holds that an economy works best with the minimum amount of government intervention?

-Refer to the graph above to answer this question.What is the equilibrium market price?

Which of the following products are non-rival?

A market is productively efficient if the price of a product equals the minimum average cost.

In what way is the market system costless?

State five benefits of the competitive market.

Which of the following products are non-excludable?

-Refer to the above graph to answer this question.What is the value of the external costs per unit?

The Economic Problem

Demand and Supply: An Introduction

Demand and Supply: An Elaboration

Elasticity

Consumer Choice

A Firms Production Decisions and Costs in the Short Run

Costs in the Long Run

Perfect Competition

Monopoly

Imperfect Competition

The Factors of Production

International Trade

Filters