Reference no: EM13198490
1)An economist evaluating an overcrowded highway is likely to recommend
a)a new highway that would create jobs
b)elimination of tolls, if any, to give the suffering motorists a break
c)replacement of the highway with a subway or rail line
d)higher tolls to encourage more efficient use of the highway
2) Consumer surplus
a) represents the amount a consumer would be willing to pay over and above what(s) he has to pay for a good or service
b)is another name for monopoly profit
c) is the amount a producer collects from the consumer over and above what the consumer really wants to pay
d) necessarily equals zero in equilibrium except in the case of perfect competition
3)What is distinguishing characteristic of a public good?
a)It is sold to the general public
b)It is sold or provided by a public entity such as a government. Food stamps are an example.
c) One, two or many individuals can consume the good simultaneously at no additional cost to the supplier
d) The person buying the good provides benefits --or causes harm--to the general public for which (s)he does not receive or provide compensation
4) Regarding innovation and invention:
a)May be subject to boomerang effect if innovation occurs abroad after domestic invention
b)Innovation is less likely in small firms than invention
c)Oligopolies sometimes engage in an "arms race" of innovation
d)All of the above are true
e)All of the above are false
5) Which of the following would probably NOT be on an economist's recommended list of ways to deal with a population problem?
a) Set strict limits on pollutants for each offending factory
b)Sell pollution permits to factories
c)Fine polluting factories according to the pollution damage they cause
d)None of the above would be on the list of recommended ways
6) A negative externality created by a producer means that from the standpoint of the public's well being and for the producer and his/her industry in question
a) Even a perfectly competitive market may produce too little of a good
b)Even a monopoly may produce too much of a good
c) Unemployment will rise
d) None of the above is correct