Micro5Q

Micro5Q - Micro Chapter 5 Study Guide Questions Multiple...

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Micro Chapter 5 Study Guide Questions Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Which one of the following would reduce the efficiency of the market process? a. promoting competitive markets b. protecting persons from fraud and theft c. providing a stable monetary environment d. protecting consumers by imposing legally mandated price ceilings ____ 2. It is difficult for the market process to provide public goods because a. private firms generally cannot undertake large-scale projects. b. it will be difficult to get potential consumers to pay for such goods since there is not a direct link between payment for and receipt of the good. c. consumers do not really want public goods, even though such goods are best for them. d. individuals are generally made worse off by the production of public goods. ____ 3. Which of the following are ways in which the private market provides consumers with valuable information to help them make better decisions? a. brand names b. franchising c. private sector certification firms and consumer report magazines d. all of the above ____ 4. Which of the following are the four major factors that may undermine the ability of the invisible hand to produce market efficiency? a. externalities, private goods, poorly informed buyers or sellers, lack of competition b. public goods, externalities, lack of competition, poorly informed buyers or sellers c. competition, poorly informed buyers or sellers, externalities, public goods d. public goods, lack of competition, well-informed buyers and sellers, externalities ____ 5. Which of the following activities is least likely to give rise to external costs or benefits?
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This note was uploaded on 04/13/2008 for the course ECO 2023 taught by Professor Mccaleb during the Spring '08 term at FSU.

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Micro5Q - Micro Chapter 5 Study Guide Questions Multiple...

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