Chapter_15 - YourResultsfor:"SelfStudyQuiz" SiteTitle:

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Your Results for: "Self-Study Quiz" Print this page Site Title: Principles of Economics, Eighth Edition Book Title: Principles of Economics, 8/e Book Author: Case/Fair Location on  Site: Chapter 15 > Self-Study Quiz Date/Time  Submitted: February 8, 2012 at 5:15 AM  (UTC/GMT) Summary of Results 30% Correct  of 40 Scored items: 12 Correct:  30% 28 Incorrect:  70% 5 questions not scored. 40 scored questions. More information about scoring 1. Which of the following is an example  of  market failure ? Your Answer: Public goods. Correct Answer: All of the above.   Incorrect. This answer is correct, however, other choices are also correct. 2. Find the statement below that  is  incorrect  about the study of  externalities? Your Answer: When people closer together, exte important. Correct Answer: Externalities are limited to free ma   Incorrect. This statement is correct. As societies become more urbanized, externalities  become more important: When we live more closely together, our actions are more likely  to affect others.
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3. When externalities are present,  which economic decisions are  socially efficient? Your Answer: The decisions that are in the best output. Correct Answer: The decisions that take into accou affect third parties.   Incorrect. The social costs and benefits of production and consumption must be taken  into account. 4. For every unit produced beyond the  level at which  P = MC Your Answer: Society stops enjoying the benefit Correct Answer: Society uses up resources that ha the benefits that consumers place   Incorrect. Additional benefits are less than additional costs. 5. Refer to the graph below. Which  level of output is the socially optimal  level?
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Your Answer: q 2 . Correct Answer: q 1 .   Incorrect. This is the level of output that does not take into account the social cost of  production. 6. Firms that create external costs  without weighing them in their  decisions are likely to:  Your Answer: Produce too little output, and char social cost of production. Correct Answer: Produce too much output, and ch social cost of production.   Incorrect. Firms that create external costs without weighing them in their decisions are  likely to produce too much. When an externality is present, the marginal social cost of  output exceeds the price paid by consumers. 7. Which of the following is an example  of an externality? Your Answer: Acid rain. Correct Answer:
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This note was uploaded on 02/09/2012 for the course ECONOMY 101 taught by Professor Zaier during the Spring '11 term at Qatar University.

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Chapter_15 - YourResultsfor:"SelfStudyQuiz" SiteTitle:

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