Exam 24: Globalization and International Impacts on the Economy

In the case of a positive externality,in order to achieve efficiency the government must set the _________________ equal to the marginal ____________________.

Which of the following statements is false?

Given that the demand for unskilled labor curve is downward-sloping,an unintended effect of raising the minimum wage is that some people who worked at the lower wage will lose their jobs at the higher wage.

Some people see the government as being more heavily involved in taking sides than in serving the common interest.

Which economist said,"This focus on distribution makes the significance of distributional issues (transfer issues)in political life relatively greater and the significance of widespread common interest in political life relatively smaller."?

When a good is nonexcludable,then individuals

Suppose that for Jim the marginal benefit (MB)of producing is $60 and that the marginal cost (MC)of producing is $10.Suppose also that his marginal benefit of stealing is $50 and the marginal cost of stealing is $10.Is Jim currently maximizing utility in terms of producing and stealing? If not,should he produce more and steal less,or produce less and steal more to move toward utility maximization?

Tiffany gives $50 to Jeremy for his birthday.This is an example of a(n)

Special interest group A receives a 1/10,000^th slice of the economic pie (Real GDP).It is seeking a transfer of $1,000.For group A to be indifferent between a transfer policy and an economic growth policy,economic growth must be ________________ times larger than the _________________.

List and describe the three different types of transfers discussed in this chapter.Give a hypothetical example of each to help support your answer.

Which of the following situations is used as a justification for government?

Economist A believes that the case for government is a strong one,but she doesn't always say,when it comes to negative externalities,that government can turn an inefficient market outcome into an efficient outcome.Which statement is economist A most likely to make?

In the case of a negative externality,the government can use a ________________ to turn an inefficient outcome into an efficient one.In the case of a positive externality,the government can use a ________________ to turn an inefficient outcome into an efficient one.

Consider a setting in which there is a positive externality,but no negative externality.The market outcome is __________________;government can bring about the ___________________ outcome if it sets a subsidy equal to the __________________.

The essence of a prisoner's dilemma setting is that if both person A and person B do what is best for each of them,

When a positive externality exists,_______________________ and thus _______________ intervention may be needed to achieve efficiency.

Government can overcome the free rider problem by collecting taxes and using the funds to provide individuals with nonexcludable public goods that they want to buy but the market cannot provide.