quiz helpful for midterms and final (9)

quiz helpful for midterms and final (9) - Principles of...

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Principles of Economics EC 1 UCLA Dr. Bresnock Fall, 2010 Quiz 6 Choose the best answer to each question and mark it on your answer form. 1. The term "marginal social benefit" means (a) Benefits that are just above the margin of being zero (b) The entire benefits obtainable from the activity (c) That part of the benefits covered by the costs of carrying on the activity (d) The change in total social benefits per unit change in the amount of the activity A ) B ) C ) D ) 2. When there are no externalities, equilibrium in a market (a) Maximizes social well-being (b) Equates MSB and MSC (c) Equates MPB and MPC (d) Does all of the above A ) B ) C ) D ) 3. When the cost of an action falls on other than the person (or persons) responsible for the action, which of the following exists? (a) Positive externality (b) Negative externality (c) Externality in consumption (d) Externality in distribution A ) B ) C ) D )
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2 4. People have an incentive to pollute when (a) No one has property rights to the environment (b) It is less expensive to pollute than to clean up (c)
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quiz helpful for midterms and final (9) - Principles of...

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