C9_Pre-Test

C9_Pre-Test - Pre-Test

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Pre-Test (See related pages) 1 Which of the following is a source of microeconomic market failure? A) Public goods B) Externalities C) Market power D) All of the above are true. 2 The _____ mechanism is the use of market prices and sales to signal desired output (or resource allocation). A) government B) public C) market D) None of the above is true. 3 Which of the following is an example of a public good? A) National defense B) Flood control dams C) A lighthouse D) All of the above are true. 4 The market tends to _____ public goods and _____ private goods. A) underproduce; underproduce B) overproduce; overproduce C) underproduce; overproduce D) overproduce; underproduce 5 When external costs exist, _____ demand overstates _____ demand. A) social; market B) market; social C) individual; market D) None of the above is true. 6 The full resource costs of an economic activity, including externalities, are called: A) social costs. B)
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This note was uploaded on 01/28/2011 for the course PAS 2201 taught by Professor R.nair during the Spring '10 term at St. John's.

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C9_Pre-Test - Pre-Test

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