Started on Monday, 8 October 2018, 3:49 PM
State Finished
Completed on Monday, 8 October 2018, 4:01 PM
Time taken 12 mins 21 secs
Marks
... [Show More] 20.00/20.00
Grade 10.00 out of 10.00 (100%)
ECON528-850-ECON528-010-201920
Question 1
Correct
Mark 1.00 out of 1.00
Figure 17.3
(Figure 17.3) Which of the following statements is (are) TRUE?
I. The socially optimal quantity is 3.
II. The deadweight loss associated with the perfectly competitive output level is $4.50.
III. The external marginal cost is $6.
Select one:
a. I, II, and III
b. I
c. II and III
d. I and II
Your answer is correct.
The correct answer is: I and II
Question 2
Correct
Mark 1.00 out of 1.00
Use the following to answer question 2:
Table 17.1
Quantity Price
($ per unit)
Private Marginal
Cost
External Marginal
Cost
0 100 — —
1 90 10 30
2 80 20 30
3 70 40 30
4 60 60 30
5 50 80 30
6 40 100 30
7 30 120 30
(Table 17.1) According to the table, what is the socially optimal output level?
Select one:
a. 7
b. 3
c. 4
d. 0
Your answer is correct.
The correct answer is: 3
Question 3
Correct
Mark 1.00 out of 1.00
Which of the following statements is (are) TRUE?
I. In the face of a positive externality, a perfectly competitive market produces less than
the socially optimal quantity of output.
II. If vaccinations generate an external marginal benefit, their marginal social benefit will
always exceed their private marginal benefit.
III. In unregulated markets, the presence of negative externalities—but not positive
externalities—causes deadweight losses.
Select one:
a. I, II, and III
b. III
c. I and III
d. I and II
Your answer is correct.
The correct answer is: I and II
Question 4
Correct
Mark 1.00 out of 1.00
Figure 17.7
(Figure 17.7) Which of the following statements is TRUE?
Select one:
a. At 2,000 units of pollution, the marginal benefit is less than the marginal cost, so there should
be less pollution.
b. At 2,000 units of pollution, the marginal benefit exceeds the marginal cost, so there should be
more pollution
c. At 2,000 units of pollution, the marginal benefit exceeds the marginal cost, so there should be
less pollution.
d. The efficient quantity of pollution occurs at or below 6,000 units.
Your answer is correct.
The correct answer is: At 2,000 units of pollution, the marginal benefit exceeds the marginal cost, so there should be
more pollution
Question 5
Correct
Mark 1.00 out of 1.00
Which of the following statements is (are) TRUE?
I. Public goods tend to be underprovided.
II. One person's consumption of a public good diminishes its use to another person.
III. The marginal cost of providing a public good to another consumer is infinite.
Select one:
a. II and III
b. I
c. I and III
d. I, II, and III
Your answer is correct.
The correct answer is: I [Show Less]