Use the figure below to answer the following question(s). Figure 5-3 Figure 5-3 illustrates the market for a product that generates an external benefit. D1 is the private market demand curve, while D2 is the demand curve including the external benefit. Which of the following is true?

A) Relative to economic efficiency, output of the good will be too large and the price too low. B) Relative to economic efficiency, output of the good will be too large and the price too high. C) Relative to economic efficiency, output of the good will be too small and the price too low. D) Relative to economic efficiency, output of the good will be too small and the price too high. A) Relative to economic efficiency, output of the good will be too large and the price too low. B) Relative to economic efficiency, output of the good will be too large and the price too high. C) Relative to economic efficiency, output of the good will be too small and the price too low. D) Relative to economic efficiency, output of the good will be too small and the price too high.

Use the figure below to answer the following question(s). Figure 5-3 Figure 5-3 illustrates the market for a product that generates an external benefit. D1 is the private market demand curve, while D2 is the demand curve including the external benefit. Which of the following is true?

A) Point a illustrates the competitive private market outcome, while point b illustrates the outcome consistent with economic efficiency. B) Point b illustrates the competitive private market outcome, while point a illustrates the outcome consistent with economic efficiency. C) The competitive private market outcome is consistent with the conditions for economic efficiency. D) The good will tend to be oversupplied relative to the conditions for economic efficiency. A) Point a illustrates the competitive private market outcome, while point b illustrates the outcome consistent with economic efficiency. B) Point b illustrates the competitive private market outcome, while point a illustrates the outcome consistent with economic efficiency. C) The competitive private market outcome is consistent with the conditions for economic efficiency. D) The good will tend to be oversupplied relative to the conditions for economic efficiency.

Exam 5: Difficult Cases for the Market, and the Role of Government

Use the figure below to answer the following question(s). Figure 5-3 Figure 5-3 illustrates the market for a product that generates an external benefit. D₁ is the private market demand curve, while D₂ is the demand curve including the external benefit. Which of the following is true?

(Multiple Choice)

4.8/5

(33)

Question 61

The government sometimes provides public goods because

(Multiple Choice)

4.8/5

(34)

Question 62

When government failure is present,

(Multiple Choice)

4.7/5

(38)

Question 63

Externalities cause the market mechanism to allocate goods and resources inefficiently because

(Multiple Choice)

4.9/5

(37)

Question 64

Suppose external costs are present in a market which results in the actual market price of $24 and market output of 325 units. How does this outcome compare to the efficient, ideal equilibrium?

(Multiple Choice)

4.8/5

(33)

Question 65

If pollutants emitted by firms in the steel industry increase, but there is no increase in the costs borne by these firms, you could conclude that

(Multiple Choice)

4.8/5

(40)

Question 66

Which of the following is most consistent with the idea that if it's worth doing, it's worth doing imperfectly?

(Multiple Choice)

4.9/5

(35)

Question 67

When external benefits are present in a market,

(Multiple Choice)

4.8/5

(35)

Question 68

When market failure is present,

(Multiple Choice)

4.8/5

(39)

Question 69

If government taxes a firm which pollutes this will

(Multiple Choice)

4.8/5

(40)

Question 70

Use the figure below to answer the following question(s). Figure 5-3 Figure 5-3 illustrates the market for a product that generates an external benefit. D₁ is the private market demand curve, while D₂ is the demand curve including the external benefit. Which of the following is true?

(Multiple Choice)

4.9/5

(36)

Question 71

Figure 5-1 In Figure 5-1, S₁ and D illustrate the demand and supply for a product if it were produced in a normal competitive market. Which of the following would be true if the firms in the industry were instead able to get government licensing restrictions to limit competition in the market?

(Multiple Choice)

4.9/5

(29)

Question 72

When a nuclear-powered electrical plant is permitted to dump radioactive waste at no cost into a recreational waterway lowering the value boaters receive from the waterway, the

(Multiple Choice)

4.9/5

(30)

Question 73

Which of the following statements is true regarding potential information problems faced by consumers?

(Multiple Choice)

4.8/5

(28)

Question 74

Figure 5-4 Refer to Figure 5-4. If the government uses a pollution tax, how much of a tax must be imposed on each unit of production?

(Multiple Choice)

4.9/5

(38)

Question 75

Because the benefits derived from an activity decline as it is expanded, it is generally

(Multiple Choice)

4.9/5

(41)

Question 76

Sellers have a strong incentive to lobby government for legal restrictions that would reduce the intensity of competition in their market because

(Multiple Choice)

4.8/5

(41)

Question 77

If the consumption of a good by one individual does not change the amount of the good available to others, the good is considered to be

(Multiple Choice)

4.8/5

(35)

Question 78

The maintenance of a framework of security and order through the establishment and enforcement of rules under which people can interact peacefully with one another and be secure in their person and property is known as the

(Multiple Choice)

4.8/5

(32)

Question 79

A free-rider problem exists when a good that has the following characteristic?

(Multiple Choice)

4.8/5

(41)

Question 80

Showing 61 - 80 of 134

Use the figure below to answer the following question(s). Figure 5-3 Figure 5-3 illustrates the market for a product that generates an external benefit. D₁ is the private market demand curve, while D₂ is the demand curve including the external benefit. Which of the following is true?

The government sometimes provides public goods because

When government failure is present,

Externalities cause the market mechanism to allocate goods and resources inefficiently because

Suppose external costs are present in a market which results in the actual market price of $24 and market output of 325 units. How does this outcome compare to the efficient, ideal equilibrium?

If pollutants emitted by firms in the steel industry increase, but there is no increase in the costs borne by these firms, you could conclude that

Which of the following is most consistent with the idea that if it's worth doing, it's worth doing imperfectly?

When external benefits are present in a market,

When market failure is present,

If government taxes a firm which pollutes this will

Use the figure below to answer the following question(s). Figure 5-3 Figure 5-3 illustrates the market for a product that generates an external benefit. D₁ is the private market demand curve, while D₂ is the demand curve including the external benefit. Which of the following is true?

Figure 5-1 In Figure 5-1, S₁ and D illustrate the demand and supply for a product if it were produced in a normal competitive market. Which of the following would be true if the firms in the industry were instead able to get government licensing restrictions to limit competition in the market?

When a nuclear-powered electrical plant is permitted to dump radioactive waste at no cost into a recreational waterway lowering the value boaters receive from the waterway, the

Which of the following statements is true regarding potential information problems faced by consumers?

Figure 5-4 Refer to Figure 5-4. If the government uses a pollution tax, how much of a tax must be imposed on each unit of production?

Because the benefits derived from an activity decline as it is expanded, it is generally

Sellers have a strong incentive to lobby government for legal restrictions that would reduce the intensity of competition in their market because

If the consumption of a good by one individual does not change the amount of the good available to others, the good is considered to be

The maintenance of a framework of security and order through the establishment and enforcement of rules under which people can interact peacefully with one another and be secure in their person and property is known as the

A free-rider problem exists when a good that has the following characteristic?

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

The Economics of Political Action

Taking the Nations Economic Pulse

Economic Fluctuations, Unemployment, and Inflation

An Introduction to Basic Macroeconomic Markets

Dynamic Change, Economic Fluctuations, and the Ad--As Model

Fiscal Policy: The Keynesian View and the Historical Development of Macroeconomics

Fiscal Policy: Incentives, and Secondary Effects

Money and the Banking System

Modern Macroeconomics and Monetary Policy

Stabilization Policy, Output, and Employment

Creating an Environment for Growth and Prosperity

Institutions, Policies, and Cross-Country Differences in Income and Growth

Gaining From International Trade

International Finance and the Foreign Exchange Market

Special Topics

Filters

Exam 5: Difficult Cases for the Market, and the Role of Government

Use the figure below to answer the following question(s). Figure 5-3 Figure 5-3 illustrates the market for a product that generates an external benefit. D1 is the private market demand curve, while D2 is the demand curve including the external benefit. Which of the following is true?

The government sometimes provides public goods because

When government failure is present,

Externalities cause the market mechanism to allocate goods and resources inefficiently because

Suppose external costs are present in a market which results in the actual market price of $24 and market output of 325 units. How does this outcome compare to the efficient, ideal equilibrium?

If pollutants emitted by firms in the steel industry increase, but there is no increase in the costs borne by these firms, you could conclude that

Which of the following is most consistent with the idea that if it's worth doing, it's worth doing imperfectly?

When external benefits are present in a market,

When market failure is present,

If government taxes a firm which pollutes this will

Use the figure below to answer the following question(s). Figure 5-3 Figure 5-3 illustrates the market for a product that generates an external benefit. D1 is the private market demand curve, while D2 is the demand curve including the external benefit. Which of the following is true?

Figure 5-1 In Figure 5-1, S1 and D illustrate the demand and supply for a product if it were produced in a normal competitive market. Which of the following would be true if the firms in the industry were instead able to get government licensing restrictions to limit competition in the market?

When a nuclear-powered electrical plant is permitted to dump radioactive waste at no cost into a recreational waterway lowering the value boaters receive from the waterway, the

Which of the following statements is true regarding potential information problems faced by consumers?

Figure 5-4 Refer to Figure 5-4. If the government uses a pollution tax, how much of a tax must be imposed on each unit of production?

Because the benefits derived from an activity decline as it is expanded, it is generally

Sellers have a strong incentive to lobby government for legal restrictions that would reduce the intensity of competition in their market because

If the consumption of a good by one individual does not change the amount of the good available to others, the good is considered to be

The maintenance of a framework of security and order through the establishment and enforcement of rules under which people can interact peacefully with one another and be secure in their person and property is known as the

A free-rider problem exists when a good that has the following characteristic?

The Economic Approach

Some Tools of the Economist

Demand, Supply, and the Market Process

Supply and Demand: Applications and Extensions

The Economics of Political Action

Taking the Nations Economic Pulse

Economic Fluctuations, Unemployment, and Inflation

An Introduction to Basic Macroeconomic Markets

Dynamic Change, Economic Fluctuations, and the Ad--As Model

Fiscal Policy: The Keynesian View and the Historical Development of Macroeconomics

Fiscal Policy: Incentives, and Secondary Effects

Money and the Banking System

Modern Macroeconomics and Monetary Policy

Stabilization Policy, Output, and Employment

Creating an Environment for Growth and Prosperity

Institutions, Policies, and Cross-Country Differences in Income and Growth

Gaining From International Trade

International Finance and the Foreign Exchange Market

Special Topics

Filters

Use the figure below to answer the following question(s). Figure 5-3 Figure 5-3 illustrates the market for a product that generates an external benefit. D₁ is the private market demand curve, while D₂ is the demand curve including the external benefit. Which of the following is true?

Use the figure below to answer the following question(s). Figure 5-3 Figure 5-3 illustrates the market for a product that generates an external benefit. D₁ is the private market demand curve, while D₂ is the demand curve including the external benefit. Which of the following is true?

Figure 5-1 In Figure 5-1, S₁ and D illustrate the demand and supply for a product if it were produced in a normal competitive market. Which of the following would be true if the firms in the industry were instead able to get government licensing restrictions to limit competition in the market?