Final 2008 Dickson Carr.pdf - Eco 1311 Final Exam Fall 2008...

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Eco 1311 Final Exam Fall 2008 (Chapters 4-10, 12, 16)Dickson-CarrMultiple Choice-Identify the letter of the choice that best completes the statement or answers the question.REMEMBER TO READ EACH QUESTION CAREFULLY. Don’t forget to write and buble inyour SMU ID and testversion on the scantron. Put your answers on the scantron as you go.In the top right corner, ifID =A, write and bubble in “1” if ID = B, bubble in “2” in the special codes.____1.A consequence of a negative externality is that social costs ____ private costs, and the socially optimal levelof output ____.a.equal; is not equal to social costs or private costsb.do not equal; is obtainedc.are greater than; is not obtainedd. equal; is obtainede.equal; is not obtained
____2.When positive externalities are involved, the market is said to
____3.Which of the following is not a method to internalize or adjust for externalities?
____4.Some pollution may be preferable to zero pollution because
____5."Asymmetric information" exists whena.both parties to an exchange have all relevant facts about that exchange.b.a good that is either nonrivalrous or nonexcludable is being sold on a market.c.the two parties to an exchange differ in what they know about the good being exchanged(one party knows more than the other party).d.neither party to an exchange is knowledgeable about the quality of the good beingexchanged.
____6.Marginal social costs are equal to
1
2____

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Term
Spring
Professor
ElizabethWheaton
Tags
Supply And Demand, d, Externality, C Diseconomies

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