A private good
A. Experiences free riders.
B. Is provided most efficiently by the government.
C. Is consumed by one person and excludes consumption by others.
D. Results in market failure when provided in markets characterized by laissez faire.
Answer: C
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In the United States, the air quality standards used to control criteria pollutants
a. identify the maximum allowable concentrations of each pollutant b. are set to achieve an efficient abatement level using benefit-cost analysis c. are known as the NESHAP d. are achieved by all AQCRs in the nation
How do economists view profits?
A) The firm's profit equals the sum of all payments to the 5 factors of production. B) Profits are an asset the business holds. C) Profits are guaranteed as long as a firm operates ethically. D) Profits are one of the costs paid to a factor of production.
The figure above shows the market for a good with an external benefit. If the market is competitive and the government takes no action, the equilibrium quantity of ________ units is inefficient because ________
A) 8; marginal benefit exceeds marginal cost B) 8; marginal cost exceeds marginal benefit C) 10; marginal cost exceeds marginal benefit D) 10; marginal social benefit exceeds marginal benefit E) 10; marginal external benefit exceeds marginal social benefit
Gradually over the last two decades, ________ policy has emerged as the major stabilization policy tool in the United States
A) monetary B) fiscal C) exchange rates D) deregulatory