Practice Milestone 4-Microeconomics.pdf - Score 5/20 You...

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UNIT 4 — PRACTICE MILESTONE 4 Download Practice Milestone PDF Score 5/20 You failed this Practice Milestone. When you take the actual Milestone, you must score 50% or higher to pass. Retake this Practice Milestone 5 questions were answered correctly . 15 questions were answered incorrectly . 1 A mural was painted in a city's public park. As a result of constant touching and flash photography, in spite of signs requesting “no touching” and “no flash photography,” the mural had to be taken down because it became worn in some areas. What two criteria identifies the mural as a Tragedy of the Commons? The sign served as a moral compass to keep the mural intact. The sign was in a public park. There was no one there to enforce the written rules. Not everyone thought the mural was beautiful. Everyone in the town had access to the mural. Not everyone could view the sign because it was taken down.
CONCEPT Public Goods, Private Goods, and the “Tragedy of the Commons” 2 Match each example with the kind of market failure it represents. D A Information asymmetry C B Principal-agent problems A C Noncompetitive market B D Externality • A. Only one company in a city provides electricity • B. Noise pollution of a home near an airport • C. Police officers taking bribes from the mafia • D. Insider trading CONCEPT Details on Regulatory Intervention and Market Failure

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