sample quiz6 - Sample Quiz #6 Ec 201 Michigan State...

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Sample Quiz #6 Ec 201 Fall, 2010 Michigan State University L. Martin 1. Which of the following is not true of pure public goods? a. The marginal cost of another user equals zero. b. The marginal cost of production equals zero. c. No one can be excluded from consumption. d. The goods are consumed jointly. e. All of the above are true. 2. Which of the following is an external cost? a. noise caused by airplanes landing and taking off at airports; b. airplane fuel; c. wages and salaries of airport personnel; d. property taxes on buildings owned by airlines; e. costs of security. 3. When there are external costs, the market-clearing quantity a. exceeds the efficient quantity; b. equals the efficient quantity; c. is less than the efficient quantity; d. exceeds the efficient quantity for normal goods but is less for inferior goods; e. exceeds the efficient quantity for inferior goods but is less for normal goods; 4. When there is an external benefit, the market equilibrium quantity a. is less than the efficient quantity;
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sample quiz6 - Sample Quiz #6 Ec 201 Michigan State...

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