PUP 3002 Exam 1 Review Questions
and Answers
The _____ assesses the variation or dispersion of the data around the center of the
distribution - ANSWER-standard deviation
In the regression equation, 𝑌=𝐵0+𝐵1𝑥1, what is the output variable of interest? -
ANSWER-Y
What focuses on what the state of the world should be? - ANSWER-normative
criteria
A(n) _____ is any institution or operation wherein individuals can trade goods,
services, or information. - ANSWER-market
If the beneficiaries of a proposed alternative could hypothetically compensate those
who are likely to be made worse off, then we may obtain a - ANSWER-Kaldor-Hicks
improvement
Which of the following is a determinant of supply? - ANSWER-technology
When a tax is placed on power plants to have them realize the costs associated with
their pollution, what type of market failure is the government addressing? -
ANSWER-negative externality
What type of good's use or consumption will limit or eliminate the supply of that
specific good to others? - ANSWER-a rivalrous good
_____ is a situation where some incident has caused the market price to be either
higher or lower than the price that would have been obtained in the presence of a
perfectly competitive market. - ANSWER-a market distortion
A monopoly market describes a situation where a good or service has many buyers
and has how many sellers? - ANSWER-one
The Food and Drug Administration (FDA) requires food contents be marked on the
outside of the package so the consumer can make a more informed decision about
what to buy. What type of solution is the government using in this example? -
ANSWER-regulation
Elinor Ostrom's approach to manage common pool resources is based on -
ANSWER-Markets and government in combination
and Answers
The _____ assesses the variation or dispersion of the data around the center of the
distribution - ANSWER-standard deviation
In the regression equation, 𝑌=𝐵0+𝐵1𝑥1, what is the output variable of interest? -
ANSWER-Y
What focuses on what the state of the world should be? - ANSWER-normative
criteria
A(n) _____ is any institution or operation wherein individuals can trade goods,
services, or information. - ANSWER-market
If the beneficiaries of a proposed alternative could hypothetically compensate those
who are likely to be made worse off, then we may obtain a - ANSWER-Kaldor-Hicks
improvement
Which of the following is a determinant of supply? - ANSWER-technology
When a tax is placed on power plants to have them realize the costs associated with
their pollution, what type of market failure is the government addressing? -
ANSWER-negative externality
What type of good's use or consumption will limit or eliminate the supply of that
specific good to others? - ANSWER-a rivalrous good
_____ is a situation where some incident has caused the market price to be either
higher or lower than the price that would have been obtained in the presence of a
perfectly competitive market. - ANSWER-a market distortion
A monopoly market describes a situation where a good or service has many buyers
and has how many sellers? - ANSWER-one
The Food and Drug Administration (FDA) requires food contents be marked on the
outside of the package so the consumer can make a more informed decision about
what to buy. What type of solution is the government using in this example? -
ANSWER-regulation
Elinor Ostrom's approach to manage common pool resources is based on -
ANSWER-Markets and government in combination
