14 a subsidy may be used as a corrective device in

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__ 14.A subsidy may be used as a corrective device in the case of a positive externality because it will __________marginal private benefits and __________ demand.a.increase; decreaseb.increase; increasec.decrease; decreased.decrease; increase__C__ 15.The free-rider problem arises if goods are
__ 16.A negative externality can be internalized by
Which of the following is definitelynota nonexcludable public good?
__ 18.Hank goes to a Korean restaurant for the first time and he has no prior knowledge of Korean. He orders the
bul koki jungsikprepared medium hot and hopes for the best. Here an information __________ is__________ a market outcome.a.symmetry, affectingb.symmetry, not affectingc.asymmetry, affectingd.asymmetry, not affecting__A__19.The __________ problem in the market for used cars is capable of collapsing the market for __________.
__20.Lemon laws__________ the __________ problem in the used car market.
__21.Insurance deductibles __________ the __________ problem of insurance coverage.
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b.are meant to reduce, moral hazardc.unintentionally worsen, adverse selectiond.unintentionally worsen, moral hazard__A__22.When students arrive late to class and disrupt their classmatesa.a negative externality can arise.b.a positive externality can arise.c.a public good (education) becomes rivalrous.d.a public good (education) becomes nonrivalrous.___A_23.When a professor announces to the class that she will grade on a curve and that no one in the class will
receive a grade lower than a "C"

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Term
Fall
Professor
MASOOMIAN
Tags
Market failure, Externality, negative externality, c nonexcludable
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Exploring Economics
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Chapter 8 / Exercise 8
Exploring Economics
Sexton
Expert Verified

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