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Answer+Key+to+Quiz+2+ - Quiz 2 Global Economy, Econ 13/IS...

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Quiz 2 Global Economy, Econ 13/IS 13 Fall 2010 (Total 100 points; Time allowed: 50 minutes) SECTION A: Multiple Choices and True/False Questions (30 points) 1. Which of the following is physical capital? (5 points) a. the strength of workers b. the equipment in a factory c. financial assets like cash and bonds d. the knowledge of workers 2. If an externality is present in a market, economic efficiency may be enhanced by: (5 points) a. government intervention. b. weakening property rights. c. better informed market participants. d. increased competition. 3. Which of the following is a determinant of productivity? (5 points) a. Human capital per worker. b. Physical capital per worker. c. Natural resources per worker. d. All of the above are correct. 4. The government can internalize externalities by taxing goods that have negative externalities and subsidizing goods that have positive externalities. True or False? (5 points) 5. Negative externalities lead markets to produce a smaller quantity of a good than is socially desirable, while positive externalities lead markets to produce a larger quantity of a good than is socially desirable. True or False? (5 points) 6. If Country A produces 6,000 units of goods and services using 600 hours of labor, and if
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This note was uploaded on 01/17/2012 for the course ECON 13 taught by Professor Freed during the Fall '08 term at UC Irvine.

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Answer+Key+to+Quiz+2+ - Quiz 2 Global Economy, Econ 13/IS...

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