The accompanying graph depicts demand. 
The slope of the demand curve (ignoring the negative sign) is:
A. 1.
B. 1.5.
C. 0.5.
D. 2.
Answer: C
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With special-interest legislation,
a. benefits are concentrated but costs are widespread b. both benefits and costs are concentrated c. benefits are widespread but costs are concentrated d. both benefits and costs are widespread e. there is no predictable relationship between costs and benefits
What does internalizing an externality refer to?
a) making certain government does not disrupt the internal workings of the market b) making buyers pay the full price for the products they purchase c) making certain that all market transaction benefits go to only buyers and sellers d) making buyers and sellers take into account the external effects of their actions
When a trading opportunity is presented to a heterogeneous group of potential traders, those who accept it will be often
A. smarter, on average, than those who do not accept it than those who do not. B. better, on average, than those who do not accept it. C. worse-on the average, than those who do not accept it. D. no different than those who do not.
Which of the following pieces of legislation is aimed at curbing the negative effects of externalities?
A. Robinson-Patman Act B. Clean Air Act C. Truth in Lending Simplification Act D. Lanham Act