Micro test5 - 1 If some activity creates positive...

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1 ) If some activity creates positive externalities as well as private benefits, then economic theory suggests that the activity ought to be:  (6.7pts) subsidized. + 2 ) Private goods are characterized by:  (6.7pts) rivalry and excludability. + 3 ) Market failure occurs when:  (6.7pts) . the competitive market system under- or over allocates resources to  production + 4 ) Private firms cannot profitably produce a public good because of:  (6.7pts) nonrivalry and nonexcludability. + 5 ) When a person's income increases from $40,000 to $50,000 a year and tax payments increase from $3,000 to $6,000, the person's marginal tax rate is:  (6.7pts) 20 percent. +
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6 ) If an economy is being "productively efficient," then that means the economy is:  (6.7pts) fully employing all economic resources. + 7 ) A public good:  (6.7pts) can't be provided to one person without making it available to others  as well. +
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