Question : 1) Economists generally view pollution as A) an economic “bad” : 1384317

Economics

1) Economists generally view pollution as

A) an economic “bad” that must be eliminated entirely.

B) a negative economy.

C) a negative externality.

D) a positive externality.

E) a non-excludable good.

2) When firms in an industry have fully internalized a production externality,

A) they produce at less than the optimal level of output.

B) they produce at more than the optimal level of output.

C) it is not possible to achieve allocative efficiency.

D) the marginal social cost is zero.

E) they bear the entire social marginal cost of production.

3) If pollution is associated with the production of some good, then

A) the marginal social cost is less than the marginal social benefit.

B) the price of the good is equal to firms’ marginal private cost.

C) marginal social cost minus marginal private cost is negative.

D) marginal social cost minus marginal private cost is positive.

E) too little of the good is being produced by the firm.

4) Refer to Figure 17-1. A negative externality is depicted because the

A) marginal social cost is greater than the marginal social benefit.

B) marginal social cost is greater than the marginal private cost.

C) marginal social benefit to consumers is diminishing with greater output.

D) optimal level of output occurs where marginal private cost is positive.

E) optimal level of output occurs where marginal private benefit is positive.

5) Refer to Figure 17-1. The price that leads consumers to demand the socially optimal quantity of output is

A) zero.

B) P1.

C) P2.

D) P3.

E) not possible to know from the information given.

6) Refer to Figure 17-1. The price that would occur in a competitive market in the absence of government intervention is

A) P1.

B) P2.

C) P3.

D) P4.

E) not possible to know from the information given.

7) Refer to Figure 17-1. The equilibrium output that would occur in a competitive market in the absence of government intervention is

A) zero.

B) Q1.

C) Q2.

D) Q3.

E) none of the above; there is no equilibrium output level.

8) Refer to Figure 17-1. The socially optimal level of output is

A) zero.

B) Q1.

C) Q2.

D) Q3.

E) none of the above; there is no optimal output level.

9) When an external cost associated with the production of some good has been internalized, it means that

A) the opportunity cost of production is passed on to the consumer.

B) the private cost of production is borne by the producer.

C) the producer must bear the external costs imposed by production.

D) the consumer must bear the net social benefits imposed by the producer.

E) the firm is ignoring social costs.

10) The social marginal cost of the production of snowmobiles

A) is less than the marginal external cost of production.

B) is greater than the sum of the private marginal cost and external cost.

C) does not include the carbon emissions from snowmobiles.

D) includes the noise pollution imposed on those living near snowmobile trails.

E) does not include the increased risk of accidents caused by the operation of snowmobiles.

Continue to order Get a quote

July 1, 2023

61.When there is a shortage in a market, prices are likely to:

A. Fall because buyers do not wish to buy as much as sellers want to sell.

B. Rise because some buyers will offer to pay a higher price.

C. Fall because sellers are likely to reduce their production if prices rise.

D. Rise because the government will put a price ceiling in place.

62.If a market shortage exists:

A. The invisible hand will work to reduce the price.

B. The only solution is for the government to raise the price.

C. Producers will compete for customers by reducing prices.

D. Consumers will compete for the product by offering to pay more.

63.A market surplus occurs when:

A. People cannot buy the amount of goods and services that they are willing and able to buy.

B. The price is less than the equilibrium price.

C. The quantity supplied exceeds the quantity demanded at a given price.

D. There is a price ceiling.

64.When there is a surplus in a market, prices are likely to fall because:

A. Buyers do not wish to buy as much as sellers want to sell.

B. Some buyers will offer to pay a higher price, initiating a move up the supply curve.

C. Sellers are likely to increase their production.

D. Buyers will wait for the government to establish a price floor.

65.If a market surplus exists:

A. The only resolution is for the government to set the price.

B. Consumers will compete for the product buy offering to pay more.

C. Producers will compete for customers by reducing prices.

D. The equilibrium price is equal to the price ceiling.

66.If demand is constant, a decrease in the supply of gasoline will cause the equilibrium price:

A. To rise and quantity to fall.

B. And quantity both to rise.

C. To fall and quantity to rise.

D. And quantity both to fall.

67.If demand is constant, a leftward shift in the supply curve will result in:

A. A decrease in equilibrium quantity and a lower equilibrium price.

B. An increase in equilibrium quantity and a lower equilibrium price.

C. A decrease in equilibrium quantity and a higher equilibrium price.

D. An increase in equilibrium quantity and a higher equilibrium price.

68.The price of chocolate candy bars rises. This could be due to:

A. A decrease in the wage rate paid to workers in the candy bar factories.

B. A decrease in the cost of chocolate, which is used to produce candy bars.

C. A subsidy by the federal government for the producers of chocolate candy bars.

D. A decrease in the number of chocolate candy bar producers.

69.If demand is unchanged, a rightward shift in the supply curve for plasma TVs will cause:

A. A decrease in equilibrium quantity and a higher equilibrium price.

B. An increase in equilibrium quantity and a higher equilibrium price.

C. An increase in equilibrium quantity and a lower equilibrium price.

D. A decrease in equilibrium quantity and a lower equilibrium price.

70.Which of the following would cause a decrease in the price of automobiles?

A. A technological advance in automobile manufacturing.

B. An increase in the wages paid to automobile assembly line workers.

C. A decrease in the cost of gasoline.

D. An increase in the number of buyers.