Econ 2100: Chapter 11 Quiz with
complete verified solutions
For private goods with no externalities that are allocated in competitive
markets,
a. prices guide the decisions of buyers and sellers and these decisions lead
to an efficient
allocation of resources.
b. prices guide the decisions of buyers and sellers and these decisions lead
to an inefficient
allocation of resources.
c. the government guides the decisions of buyers and sellers and these
decisions lead to an
efficient allocation of resources.
d. the government guides the decisions of buyers and sellers and these
decisions lead to an
inefficient allocation of resources. - answer a. prices guide the decisions of
buyers and sellers and these decisions lead to an efficient allocation of
resources.
For most goods in a capitalist economy, the signal that guides the decisions
of buyers and sellers is
a. preference.
b. government intervention.
c. quantity.
d. price. - answer d. price.
The provision of public goods gives rise to
, a. no externalities.
b. positive externalities.
c. negative externalities.
d. rivalries in consumption. - answer b. positive externalities.
A good is excludable if
a. one person's use of the good diminishes another person's enjoyment of it.
b. the government can regulate its availability.
c. it is not a normal good.
d. people who do not pay can be prevented from using it. - answer d. people
who do not pay can be prevented from using it.
Goods that are not excludable include both
a. private goods and public goods.
b. club goods and common resources.
c. common resources and public goods.
d. private goods and club goods. - answer c. common resources and public
goods.
When something of value has no price attached to it,
a. externalities will be present.
b. production of the product has no opportunity cost.
c. government should not intervene to produce the product.
d. private companies will eventually produce the product, and the good will
no longer be
complete verified solutions
For private goods with no externalities that are allocated in competitive
markets,
a. prices guide the decisions of buyers and sellers and these decisions lead
to an efficient
allocation of resources.
b. prices guide the decisions of buyers and sellers and these decisions lead
to an inefficient
allocation of resources.
c. the government guides the decisions of buyers and sellers and these
decisions lead to an
efficient allocation of resources.
d. the government guides the decisions of buyers and sellers and these
decisions lead to an
inefficient allocation of resources. - answer a. prices guide the decisions of
buyers and sellers and these decisions lead to an efficient allocation of
resources.
For most goods in a capitalist economy, the signal that guides the decisions
of buyers and sellers is
a. preference.
b. government intervention.
c. quantity.
d. price. - answer d. price.
The provision of public goods gives rise to
, a. no externalities.
b. positive externalities.
c. negative externalities.
d. rivalries in consumption. - answer b. positive externalities.
A good is excludable if
a. one person's use of the good diminishes another person's enjoyment of it.
b. the government can regulate its availability.
c. it is not a normal good.
d. people who do not pay can be prevented from using it. - answer d. people
who do not pay can be prevented from using it.
Goods that are not excludable include both
a. private goods and public goods.
b. club goods and common resources.
c. common resources and public goods.
d. private goods and club goods. - answer c. common resources and public
goods.
When something of value has no price attached to it,
a. externalities will be present.
b. production of the product has no opportunity cost.
c. government should not intervene to produce the product.
d. private companies will eventually produce the product, and the good will
no longer be
