Question 1

Which of the following is an example of a near-public good?

Accepted Answer

A)  a highway 
B)  clean air 
C)  a gallon of milk 
D)  pollution 
E)  a ticket to a professional baseball game 
A)  a highway 
B)  clean air 
C)  a gallon of milk 
D)  pollution 
E)  a ticket to a professional baseball game

Question 2

-Exhibit N-3 depicts a market showing the demand curve for a good and two supply curves, one reflecting the industry's private costs; the other reflecting the costs of resources to society producing the good. It is clear from this representation of the marketthat

Accepted Answer

A)  there is a free-rider condition 
B)  there are positive externalities in this market 
C)  external costs exist in this industry 
D)  only one firm is producing the good 
E)  the demand curve incorporates both private and social benefits 
A)  there is a free-rider condition 
B)  there are positive externalities in this market 
C)  external costs exist in this industry 
D)  only one firm is producing the good 
E)  the demand curve incorporates both private and social benefits

Question 3

If there is a negative externality associated with the production of chewing gum, then the most efficient allocation of resources in gum production occurs at the intersection of the

Accepted Answer

A)  demand curve and the private cost curve 
B)  demand curve and the externality curve 
C)  demand curve and the social cost curve 
D)  social cost curve and the private cost curve 
E)  private cost curve and the externality cost curve 
A)  demand curve and the private cost curve 
B)  demand curve and the externality curve 
C)  demand curve and the social cost curve 
D)  social cost curve and the private cost curve 
E)  private cost curve and the externality cost curve

Which of the following is an example of a near-public good?

-Exhibit N-3 depicts a market showing the demand curve for a good and two supply curves, one reflecting the industry's private costs; the other reflecting the costs of resources to society producing the good. It is clear from this representation of the marketthat

If there is a negative externality associated with the production of chewing gum, then the most efficient allocation of resources in gum production occurs at the intersection of the

Introduction

Production Possibilities and Opportunity Costs

Demand and Supply

Elasticity

Happiness, Utility, and Consumer Choice

Price Ceilings and Price Floors

Entrepreneurship and Business Ownership

Costs of Production

Maximizing Profit

Identifying Markets and Market Structures

Price and Output in Monopoly, Monopolistic Competition, and Perfect Competition

Price and Output Determination Under Oligopoly

Antitrust and Regulation

Wage Rates in Competitive Labor Markets

Wages and Employment: Monopsony and Labor Unions

Interest, Rent, and Profit

Income Distribution and Poverty

International Trade

Exchange Rates, Balance of Payments, and International Debt

The Economic Problems of Less-Developed Economies

Filters

Exam 14: Externalities, Market Failure, and Public Choice

Which of the following is an example of a near-public good?

-Exhibit N-3 depicts a market showing the demand curve for a good and two supply curves, one reflecting the industry's private costs; the other reflecting the costs of resources to society producing the good. It is clear from this representation of the marketthat

If there is a negative externality associated with the production of chewing gum, then the most efficient allocation of resources in gum production occurs at the intersection of the

Introduction

Production Possibilities and Opportunity Costs

Demand and Supply

Elasticity

Happiness, Utility, and Consumer Choice

Price Ceilings and Price Floors

Entrepreneurship and Business Ownership

Costs of Production

Maximizing Profit

Identifying Markets and Market Structures

Price and Output in Monopoly, Monopolistic Competition, and Perfect Competition

Price and Output Determination Under Oligopoly

Antitrust and Regulation

Wage Rates in Competitive Labor Markets

Wages and Employment: Monopsony and Labor Unions

Interest, Rent, and Profit

Income Distribution and Poverty

International Trade

Exchange Rates, Balance of Payments, and International Debt

The Economic Problems of Less-Developed Economies

Filters