Which of the following is definitely not a

105. Which of the following is definitely not
a nonexcludable public good?
a. national defense
b. elementary education
c. flood control
d. charitable giving
e. None of the above; all are nonexcludable public goods.
ANS: B PTS: 1 DIF: Moderate NAT: Analytic
LOC: Markets, market failure, and externalities
106. If an asymmetry of information is removed and laborers' p
references change against employment
in a labor market, it would __________ employment and __________ the wage at the
equilibrium in the market.

c. decrease; raise
d. decrease; lower
ANS: C PTS: 1 DIF: Moderate NAT: Analytic
LOC: Markets, market failure, and externalities
107. The disagreement between A. C. Pigou and Ronald Coase arose because
PTS: 1 DIF: Difficult NAT: Analytic
LOC: Markets, market failure, and externalities
108. The Coase theorem states that
PTS: 1 DIF: Moderate NAT: Analytic
LOC: Markets, market failure, and externalities
109. When marginal private cost is equal to marginal social cost,
a. the activity in question generates no positive externality.
b. the activity in question generates no negative externality.
c. all positive externalities have been internalized.
d. all negative externalities have been internalized.
e. b or d
ANS: E PTS: 1 DIF: Moderate NAT: Analytic
LOC: Markets, market failure, and externalities