Behavioral economists criticize neoclassical models as being:
A. Messy and imprecise
B. Accurate but artificially elegant
C. Precise but inaccurate
D. Vague but accurate
C. Precise but inaccurate
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Which of the following is not a potential drawback to public provision of public goods?
a. Public provision lacks clear signals about the value of the good being produced, possibly leading to under and over provision of the goods. b. Many collective consumption goods might be overproduced private goods. c. Public provision often implies taxation, which creates an excess burden that might overwhelm any efficiency gains. d. Many collective consumption goods are really impure private goods and thus the efficient level of output is never reached.
Which of the following is a major import for the United States?
A) corn B) soybeans C) coal D) fish E) none of the above
Adverse selection is most likely to be a problem when:
A. the good being exchanged has negative externalities. B. there are public goods involved. C. one side of the market, either buyer or seller, has better information than the other side. D. the good being exchanged has free rider problems.
The above figure shows a firm in monopolistic competition. What price will the firm charge?
A) $12 B) $24 C) $36 D) None of the above answers is correct.