quiz 3

quiz 3 - Quiz_3005 An example of a positive externality...

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Quiz_3005 An example of a positive externality would be: Possible Answers A. repainting the house you live in. B. graduating from college. C. cleaning up the sidewalk on your block. D. all of the above. 2. Quiz_3043 If a firm raised its price and discovered that its total revenue fell, then the demand for its product is: Possible Answers A. relatively elastic. B. relatively inelastic. C. perfectly elastic. D. perfectly inelastic. 3. Quiz_3002 An externality is: Possible Answers A. a cost paid for by the producer of a good or service. B. a benefit or cost felt by someone who is not a producer or consumer of a good or service. C. a benefit realized by the purchaser of a good or service. D. anything that is external or not relevant to the production of a good or service. 4. Quiz_3012 If figure 5.2, the efficient output is: Possible Answers
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A. Q1. B. Q2. C. Q3. D. Q4. 5. Quiz_3013 If figure 5.2, the dead weight loss due to the externality is: Possible Answers A. F+J B. A+B+C+E+F C. H+L D. T+U 6. Quiz_3029 A horizontal demand curve is: Possible Answers A. unit elastic. B. relatively elastic. C. perfectly inelastic. D. perfectly elastic. 7. Quiz_3018 A good or service is considered to be excludable: Possible Answers A. when all people can be considered as an owner and no one is excluded from ownership. B. if you can't keep other people who did not pay for the item from enjoying its benefits. C. if you can keep other people who did not pay for the item from enjoying its benefits. D. when you consume a unit of the good, there is one less for everyone else.
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8. Quiz_3014 A free market fails: Possible Answers A. when there is an external effect in either production, consumption, or both. B. when there is government intervention. C. when marginal benefits equal marginal costs. D. whenever there is no government intervention. 9. Quiz_3023 If you buy a product for your own use, it is a: Possible Answers A. private good. B. natural monopoly. C. common resource. D. public good. 10. Quiz_3026 Price elasticity of demand measures: Possible Answers A. how responsive to price changes suppliers are. B. how responsive sales are to a change in buyers' incomes. C. how responsive quantity demanded is to a change in price. D. how responsive sales are to changes in the price of a related good. 11. Quiz_3048 If a good has a negative income elasticity of demand, this indicates the good is:
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Possible Answers A. normal. B. a substitute with another good. C. inferior. D. a complement with another good. 12. Quiz_3032 In figure 6.1, the demand curve that is perfectly elastic is: Possible Answers A. graph a. B. graph b. C. graph c. D. none of the above. 13. Quiz_3033 In figure 6.1, the demand curve on which elasticity changes at every point is: Possible Answers A. graph a. B.
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quiz 3 - Quiz_3005 An example of a positive externality...

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