ECON 1002 Microeconomics Exam 2_Latest Spring 2022-2023 Complete A+ Solutions

Document Content and Description Below

Instruction: You have 115 minutes to finish the quiz. Please choose the most appropriate answer to each question and mark it in the Scantron answer sheet. Any answer in the problem set will NOT be g... raded. 1. If many people in a community install fire hydrants, the whole community benefits including those that did not install it. Therefore, not enough people may decide to install the fire hydrant. This is one illustration of: A. The market allocating resources efficiently B. Monopoly power due to lack of competition C. Supply-side market failure D. Demand-side market failure 2. When a private firm provides fireworks, it could not produce the efficient amount of it because it is unable to charge consumers who are unwilling to pay for it, then we have a: A. Demand-side market failure B. Supply-side market failure C. Competitive market D. Monopolistic market 3. When a chemical firm does not have to pay the full cost of producing a product, they tend to: A. Over-produce the product because of a demand-side market failure B. Under-produce the product because of a demand-side market failure C. Under-produce the product because of a supply-side market failure D. Over-produce the product because of a supply-side market failure 4. People enjoy outdoor holiday lighting displays and would be willing to pay to see these displays but can't be made to pay. Because those who put up lights are unable to charge others to view them, they don't put up as many lights as people would like. This is an example of a: A. negative externality. B. supply-side market failure. C. demand-side market failure. D. government failure. 5. The trains of the Transcontinental Railway Company, when shipping goods, sometimes emit sparks that start fires along the tracks and damage the property of others. If Transcontinental does not pay for the damage it causes, what has occurred? 1 [Show More]

Last updated: 1 year ago

Preview 1 out of 15 pages