ECON 212 Final Exam || CORRECTLY SOLVED
Economy of Communion correct answers breaking down divide between people on which
economic exchanges are based
Eucharist correct answers consumption means assimilation to a public body (christ), doesn't
consume goods for private use
Benevolence correct answers free suspension of self-interested exchange, can't be encouraged
publicly
Radical Individualism correct answers pursuit of self-interest at the expense of surrounding
needs of others (libertarianism)
Market Power correct answers ability to raise price above MC without fear of competitors
Economies of Scale correct answers advantages of large-scale production that reduces
average cost as quantity increases
Trade-off associated with economies of scale: correct answers costs are lower for a few firms,
but market power+prices are higher
Antitrust Laws correct answers anti-monopoly, Sherman, Clayton
Cartel correct answers suppliers who act together to reduce supply, raise price+profit
Prisoner's Dilemma correct answers pursuit of self-interest leads to group outcome desired by
nobody
Tacit Collusion correct answers collusion without agreement or communication
Rival Good correct answers when one person's use of a good reduces the ability of another to
use the same good
Private Goods correct answers excludable+rival
Public Goods correct answers nonexcludable+nonrival
Free Ride correct answers enjoy benefits without contributing to share of costs
Forced Riders correct answers must contribute to public good even though benefit may be
low (people against nat'l defense)
Club Goods correct answers excludable+nonrival (pay per view movie/show)
Common Goods correct answers nonexcludable, rival (tuna in ocean)
Tragedy of the Commons correct answers overuse and lack of replenishment (aquafier)
Public Choice correct answers study of political behavior using the tools of economics
Economy of Communion correct answers breaking down divide between people on which
economic exchanges are based
Eucharist correct answers consumption means assimilation to a public body (christ), doesn't
consume goods for private use
Benevolence correct answers free suspension of self-interested exchange, can't be encouraged
publicly
Radical Individualism correct answers pursuit of self-interest at the expense of surrounding
needs of others (libertarianism)
Market Power correct answers ability to raise price above MC without fear of competitors
Economies of Scale correct answers advantages of large-scale production that reduces
average cost as quantity increases
Trade-off associated with economies of scale: correct answers costs are lower for a few firms,
but market power+prices are higher
Antitrust Laws correct answers anti-monopoly, Sherman, Clayton
Cartel correct answers suppliers who act together to reduce supply, raise price+profit
Prisoner's Dilemma correct answers pursuit of self-interest leads to group outcome desired by
nobody
Tacit Collusion correct answers collusion without agreement or communication
Rival Good correct answers when one person's use of a good reduces the ability of another to
use the same good
Private Goods correct answers excludable+rival
Public Goods correct answers nonexcludable+nonrival
Free Ride correct answers enjoy benefits without contributing to share of costs
Forced Riders correct answers must contribute to public good even though benefit may be
low (people against nat'l defense)
Club Goods correct answers excludable+nonrival (pay per view movie/show)
Common Goods correct answers nonexcludable, rival (tuna in ocean)
Tragedy of the Commons correct answers overuse and lack of replenishment (aquafier)
Public Choice correct answers study of political behavior using the tools of economics
