Question 1

Figure 5-3  
-Refer to Figure 5-3. The deadweight loss due to the externality is represented by the area

Accepted Answer

A)  mso. 
B)  msn. 
C)  nso. 
D)  mtn. 
A)  mso. 
B)  msn. 
C)  nso. 
D)  mtn.

Question 2

Consider the following characteristics: a. low transaction costs
B. small levels of pollution
C. high levels of pollution
D. clear assignment of property rights.
Which of the above are assumptions behind the Coase Theorem?

Accepted Answer

A)  a, b, and d 
B)  a, c, and d 
C)  a and d 
D)  a only 
A)  a, b, and d 
B)  a, c, and d 
C)  a and d 
D)  a only

Question 3

A product is considered to be nonexcludable if

Accepted Answer

A)  you can keep those who did not pay for the item from enjoying its benefits. 
B)  you cannot keep those who did not pay for the item from enjoying its benefits. 
C)  your consumption of the product reduces the quantity available for others to consume. 
D)  it is jointly owned by all members of a community. 
A)  you can keep those who did not pay for the item from enjoying its benefits. 
B)  you cannot keep those who did not pay for the item from enjoying its benefits. 
C)  your consumption of the product reduces the quantity available for others to consume. 
D)  it is jointly owned by all members of a community.

Question 4

If electric utilities continually reduce their emissions of sulfur dioxide,

Accepted Answer

A)  the utilities will eventually be forced to go out of business. 
B)  the marginal benefit of additional emissions will rise. 
C)  the marginal cost of further emissions will rise. 
D)  the total benefit of sulfur dioxide emissions will fall. 
A)  the utilities will eventually be forced to go out of business. 
B)  the marginal benefit of additional emissions will rise. 
C)  the marginal cost of further emissions will rise. 
D)  the total benefit of sulfur dioxide emissions will fall.

Question 5

A public good is

Accepted Answer

A)  a good that is rival and excludable. 
B)  good that is nonrival and nonexcludable. 
C)  a good that is nonrival and excludable. 
D)  a good that is rival and nonexcludable. 
A)  a good that is rival and excludable. 
B)  good that is nonrival and nonexcludable. 
C)  a good that is nonrival and excludable. 
D)  a good that is rival and nonexcludable.

Question 6

A quasi-public good differs from a public good in that unlike a public good, it is possible to keep out those who do not pay for the quasi-public good from enjoying the benefits of the good.

Accepted Answer

A) True 
 B)False

Figure 5-3 -Refer to Figure 5-3. The deadweight loss due to the externality is represented by the area

Consider the following characteristics: a. low transaction costs B. small levels of pollution C. high levels of pollution D. clear assignment of property rights. Which of the above are assumptions behind the Coase Theorem?

A product is considered to be nonexcludable if

If electric utilities continually reduce their emissions of sulfur dioxide,

A public good is

A quasi-public good differs from a public good in that unlike a public good, it is possible to keep out those who do not pay for the quasi-public good from enjoying the benefits of the good.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters

Exam 5: Externalities, Environmental Policy, and Public Goods

Figure 5-3 -Refer to Figure 5-3. The deadweight loss due to the externality is represented by the area

Consider the following characteristics: a. low transaction costs B. small levels of pollution C. high levels of pollution D. clear assignment of property rights. Which of the above are assumptions behind the Coase Theorem?

A product is considered to be nonexcludable if

If electric utilities continually reduce their emissions of sulfur dioxide,

A public good is

A quasi-public good differs from a public good in that unlike a public good, it is possible to keep out those who do not pay for the quasi-public good from enjoying the benefits of the good.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Elasticity: the Responsiveness of Demand and Supply

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

GDP: Measuring Total Production and Income

Unemployment and Inflation

Economic Growth, the Financial System, and Business Cycles

Long-Run Economic Growth: Sources and Policies

Aggregate Expenditure and Output in the Short Run

Aggregate Demand and Aggregate Supply Analysis

Money, Banks, and the Federal Reserve System

Monetary Policy

Fiscal Policy

Inflation, Unemployment, and Federal Reserve Policy

Macroeconomics in an Open Economy

The International Financial System

Filters