1. 1) Flu vaccination can create ; a honey producer locating next to fruit orchards can create ; and disruptive behaviours in the classroom can create .
2. A) a positive consumption externality; a positive consumption externality; a negative production externality B) a positive consumption externality; a positive production externality; a negative consumption externality C) a negative production externality; a positive production externality; a negative consumption externality D) a positive consumption externality; a positive production externality; a positive consumption externality E) None of above is correct.
3. 2) Marginal private cost
4. A) is the cost of producing an additional unit of a good or service that is paid by the producer of that good or service.
5. B) is always zero if there is an external cost.
6. C) equals the marginal social cost only if the marginal external cost is positive.
7. D) the cost of producing an additional unit of a good or service that is paid by the entire society.
8. E) is the cost of producing an additional unit of a good or service that falls on people other than the producer of that good or service.
9. 3) A marginal external cost of a product is equal to
10. A) the cost the producer incurs to produce another unit.
11. B) what the producer has to pay to hire resources to produce another unit.
12. C) what the consumer must pay when he or she buys the good or service.
13. D) the cost someone other than the producer incurs when another unit is produced. E) None of these answers describes a marginal external cost.
14. 4) Marginal social cost is the
15. A) price a consumer pays for one more unit of a good.
16. B) same as marginal cost only if there is an external cost when the good is produced.
17. C) cost of producing one more unit of a good that falls on someone other than the producer.
18. D) sum of the cost a producer incurs from producing one more unit of a good plus the cost of producing one more unit of a good that falls on someone other than the producer.
19. E) cost a producer incurs producing one more unit of a good.
20. 5) Which of the following is true?
21. A) MSB = MB + Marginal external benefit - Marginal external cost B) MB = Marginal external benefit + MSC
22. C) MB = Marginal external benefit - MSB
23. D) MSB = MB + Marginal external benefit
24. E) MSB = Marginal external cost - marginal external benefit

1

ECON111 MICROECONOMIC PRINCIPLES S1 2017

6) The Coase theorem states that

A) the level of pollution should be equal to zero to maximise social net benefit.

B) the best way to limit pollution is by taxing producers who pollute.

C) if property rights exist and transactions costs are low, private transactions are efficient.

D) profit-making producers pollute because they are forced to.

E) the efficient level of output is where marginal external cost equals marginal external benefit.

7) A good is nonexcludable if

A) when you pay for the good, you are guaranteed to be the sole consumer. B) nobody can be excluded from enjoying the benefits of the good.

C) it is also nonrival.

D) when you consume a unit, that means there is no less for someone else. E) only the government can produce it.

8) A good is rival if

A) consumption by one person decreases the quantity available for another person. B) it can be consumed by many people simultaneously.

C) it is excludable.

D) it has no complements.

E) it has substitutes.

9) A good that is ________ and ________ is a ________. A) nonrival; nonexcludable; private good

B) rival; excludable; public good

C) nonrival; excludable; public good

D) rival; excludable; private good

E) rival; nonexcludable; private good

10) A public good

A) only yields benefits to those who decide to buy it. C) is rival. D) is nonrival and nonexcludable.

B) is the same as a common resource. 

SuperTutor

(15)

Status NEW Posted 17 May 2017 05:05 AM My Price 20.00

-----------

Attachments

file 1494998899-Solutions file.docx preview (56 words )

S-----------olu-----------tio-----------ns -----------fil-----------e -----------Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k y-----------ou -----------for----------- yo-----------ur -----------int-----------ere-----------st -----------and----------- bu-----------yin-----------g m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l b-----------e q-----------uic-----------kly----------- on-----------lin-----------e a-----------nd -----------giv-----------e y-----------ou -----------exa-----------ct -----------fil-----------e a-----------nd -----------the----------- sa-----------me -----------fil-----------e i-----------s a-----------lso----------- se-----------nt -----------to -----------you-----------r e-----------mai-----------l t-----------hat----------- is----------- re-----------gis-----------ter-----------ed -----------onÂ----------- th-----------is -----------web-----------sit-----------e. ----------- H-----------YPE-----------RLI-----------NK -----------&qu-----------ot;-----------htt-----------p:/-----------/wo-----------rkb-----------ank-----------247-----------.co-----------m/&-----------quo-----------t; -----------\t -----------&qu-----------ot;-----------_bl-----------ank-----------&qu-----------ot;----------- -----------Tha-----------nk -----------you----------- -----------

Not Rated(0)

• Buy Answer