C9_Post-Test

C9_Post-Test - Post-Test...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Post-Test (See related pages) 1 Market failure is: A) an imperfection in the market mechanism that prevents optimal outcomes. B) when the free market "fails" to do something. C) when the public sector underperforms. D) All of the above are true. 2 The market mechanism _____ to provide the optimal mix of output. A) will always fail B) will never fail C) may fail D) None of the above is true. 3 A _____ is a good or service whose consumption by one person does not preclude consumption by others. A) private good B) public good C) free rider D) None of the above is true. 4 An individual who reaps direct benefits from someone else's purchase (consumption) of a _____ good is a _____. A) private; free rider B) public; free rider C) private; taxpayer D) None of the above is true. 5 Externalities: A) are costs (or benefits) of a market activity borne by a third party. B) are the difference between the social and private costs (benefits) of a market activity. C)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 2

C9_Post-Test - Post-Test...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online