Question : 61) A benefit that accrues to people other than the : 1239093

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.

68) The figure above shows the market for pants. If the efficient quantity is produced,

A) there will be no consumer surplus.

B) the sum of consumer and producer surplus will be maximized.

C) a small deadweight loss will result.

D) the sum of consumer and producer surplus will be minimized.

E) the consumer surplus on all the pants must equal the producer surplus on all the pants.

69) The figure above shows the market for pants. If 6 million pairs of pants are produced, the deadweight loss is

A) zero.

B) the triangle ABE.

C) the triangle BCE.

D) the triangle ACE.

E) the triangle BCE minus the triangle ABE.

70) The figure above shows the market for pants. If the production of the pants results in an external cost from pollution that is the result of the dye used, then

A) 6 million pairs is the efficient quantity.

B) fewer than 6 million pairs is the efficient quantity.

C) more than 6 million pairs is the efficient quantity.

D) None of the above answers is necessarily correct because more information is needed about the size of the external cost.

E) None of the above answers is correct because it is impossible to tell whether the external cost results in underproduction or overproduction.