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12. Which of the following examples describes a situation in which a negative consumption externality must be occurring? 1.You decide to smoke a cigarette in class.2.You decide to get a flu shot.3.You decide to go skiing with your friends this weekend.4.All of the above5.None of the above13. Refer to Figure C: Based on this information, at a price of $8 per unit, the market quantity demanded is equal to ___ and the market Qs is equal to _____. 14. Refer to Figure C: Based on this information, at a price of $3 per unit, the market price is ____ equilibrium and the market will experience an _____. 15. Refer to Figure C: Based on this information, the market equilibrium price will be ___ and the market equilibrium amount bought and sold will be ____. 16. Which of the following could lead to a market failure? 1.The producer of dog food is hiding from consumers the information that the dog food contains harmful pesticides. 2.Consumers consider ramen noodles to be an inferior good. 3.The income effect is larger than the substitution effect. 4.Hamburger exhibits diminishing marginal utility of consumption. 5.All of the above
10 17. Which of the following statements about a rational decision maker is/are true? 18. Which of the following statements can be considered a normative statement? 19. What is another way of saying economic efficiency?