ECON 1002 Week 6 Final Test_Latest Complete 100% Answers.

Document Content and Description Below

Econ 1002 Final Test • Question 1 Which of the following is the best example of a positive externality? • Question 2 As a result of a negative externality, the ... market equilibrium quantity is too ______ compared to the socially optimal quantity. As a result of a positive externality, the market equilibrium quantity is too ______ compared to the socially optimal quantity. • Question 3 Based on the diagram below, the deadweight loss area associated with the market equilibrium equals: • Question 4 A firm's accounting profit is given by total revenue: • Question 5 Suppose an activity has a private cost equal to $30 and a private benefit equal to $30. The associated social cost equals $35 and the social benefit equals $30. Which of the following statements is true about this activity? • Question 6 The Coase Theorem implies that: • Question 7 An industry in which a small number of large firms sell products that are either close or perfect substitutes is: • Question 8 When a negative externality is present in a market: • Question 9 In the presence of a positive externality, the government can arrive at the socially optimal output level by: • Question 10 The tragedy of the commons is that: • Question 11 One potential remedy to the tragedy of the commons is to: • Question 12 As a result of a positional externality: • Question 13 Which of the following statements is true regarding health insurance? • Question 14 A strategy that yields a higher payoff no matter what the other players in the game choose is known as a: • Question 15 Based on the diagram below, if the costs of hospital care are constant at $200 per day, and the individual does not incur any cost for each day for hospital care, then: • Question 16 Economic research by Manning and colleagues suggests that people with deductible health insurance policies: • Question 17 An efficient program for reducing pollution is one for which: • Question 18 Given the information on pollution abatement costs of the two firms shown below, which of the following is an efficient combination of pollution reduction? Quantity of pollution abatement Firm A's MC of abatement Firm B's MC of abatement 1 $30 $25 2 $35 $30 3 $40 $35 4 $45 $40 • Question 19 All of the following are characteristics of perfectly competitive markets except: • Question 20 An advantage of the auction method to pollution abatement is that: • Question 21 There are 2 firms each emitting 200 tons of a pollutant. Firm A's abatement costs are constant at $20/ton, and Firm B's abatement costs are constant at $40/ton. The government's goal is to reduce pollution by half. If the government auctions 200 one ton permits to the highest bidder: • Question 22 As a result of economies of scale, as output expands: • Question 23 Generally, when countries open their borders to free trade: • Question 24 Which of the following is the best example of a tariff? • Question 25 A means-tested program is a benefit program: [Show More]

Last updated: 1 year ago

Preview 1 out of 7 pages