Question : 22) The above figure shows the marginal private cost curve, : 1241080

Economics

22) The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture. The market equilibrium with no government intervention is raising ________.

A) 0 goats

B) 40 goats

C) 50 goats

D) 55 goats

E) None of the above answers is correct.

23) The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture. The efficient outcome is raising ________.

A) 0 goats

B) 40 goats

C) 50 goats

D) 55 goats

E) None of the above answers is correct.

24) The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture. A quota to prevent the overuse of the common pasture sets the number of goats to be raised equal to ________.

A) 0 goats

B) 40 goats

C) 50 goats

D) 55 goats

E) None of the above answers is correct.

25) The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture. If property rights to the pasture are granted to a farmer so that the farmer owns the pasture, the farmer raises ________.

A) 0 goats

B) 40 goats

C) 50 goats

D) 55 goats

E) None of the above answers is correct.

26) The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture. Suppose the government assigns individual transferable quotas (ITQ) set to achieve the efficient outcome. The market price of an ITQ is ________ per pound.

A) $4.20

B) $2.00

C) $6.00

D) $4.00

E) $0.00

27) The tragedy of the commons is the absence of incentives to

A) correctly measure the marginal benefit.

B) prevent under use of the common resource.

C) prevent overuse and depletion of the common resource.

D) discover the resource.

E) prevent the free-rider problem.

28) For a common resource such as fish, the marginal private benefit ________ the marginal social benefit and the marginal private cost ________ the marginal social cost.

A) equals; is less than

B) is greater than; equals

C) equals; equals

D) is less than; is less than

E) is greater than; is greater than

29) For a common resource, the marginal private cost curve ________ and the marginal social cost curve ________.

A) slopes upward; slopes upward

B) slopes upward; slopes downward

C) slopes downward; slopes upward

D) slopes downward; slopes downward

E) is vertical; is horizontal

30) For a common resource, the equilibrium with no government intervention is such that ________ equals ________.

A) marginal private benefit; marginal social cost

B) marginal social benefit; marginal private cost

C) marginal social cost; marginal social benefit

D) marginal external benefit; marginal external cost

E) marginal social benefit; marginal external cost

31) For a common resource, efficiency requires that the ________ equals the ________.

A) marginal private benefit; marginal private cost

B) marginal social benefit; marginal private cost

C) marginal social benefit; marginal social cost

D) marginal external benefit marginal external cost

E) marginal social benefit; marginal external cost

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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.