Question : 57) When the cost of producing a product paid, at : 1241552

57) When the cost of producing a product is paid, at least in part, by someone other than the producer, the cost is referred to as

A) an external cost.

B) an external profit.

C) an external benefit.

D) an external/internal cost.

E) a public cost.

58) A cost not borne by the producer but borne by other people is known as ________ cost.

A) a marginal

B) an internal

C) an external

D) a nonessential

E) a subsidized

59) Air pollution is an external cost because it

A) is a pollution of the external environment.

B) is a cost not borne by the producer of the good.

C) benefits no one.

D) is not associated with resource use.

E) is created only when production occurs.

60) When a product benefits people other than the buyer of the product, the product is said to have

A) an external cost.

B) an excludable cost.

C) an external benefit.

D) an excludable benefit.

E) a subsidized benefit.

61) A benefit that accrues to people other than the buyer of a good is known as ________ benefit.

A) an internal

B) an external

C) a marginal

D) a total

E) a subsidized

62) A public good

A) is a good that is usually consumed in public, such as a restaurant meal.

B) is a good people can consume even if they do not pay for it.

C) is a good produced by government.

D) results in an efficient allocation of resources.

E) is a good for which people are willing to pay a very high price.

63) A good or service can be consumed by a person even if he or she didn’t pay for it is called ________ good.

A) a private

B) a public

C) a normal

D) an inferior

E) an external

64) When people cannot be excluded from consuming a good, even if they have not paid for the good, competitive markets would

A) produce more of the good than society needs.

B) allocate more resources than the efficient amount to the production of the good.

C) produce the good so that people could enjoy a “free ride.”

D) produce less than the efficient quantity.

E) eliminate the deadweight loss.

65) A monopoly is

A) the single buyer of some good or service.

B) a firm that has control of a market because it is the only seller.

C) a firm that creates enormous external costs.

D) a firm that faces intense competition.

E) a cost of producing a good or service.

66) If one producer has control over an entire market and underproduces, the producer will

A) increase producer surplus by lowering pollution costs.

B) increase consumer surplus by lowering producer surplus.

C) increase both consumer and producer surplus.

D) create a deadweight loss.

E) decrease the deadweight loss that would exist if the market were efficient.

67) Deadweight loss and market failure are created when a market produces

A) either more or less than the efficient quantity.

B) more than the efficient quantity but not when less than the efficient quantity is produced.

C) less than the efficient quantity but not when more than the efficient quantity is produced.

D) the efficient quantity.

E) None of the above answers is correct because deadweight loss has nothing to do with the efficient quantity.