: ECON 102 practice Exam 2 Part 3
Document Summary
A free rider is: ( a good that is both excludable and rival in consumption. ) Knowledge produced by basic research: ( is a public good because once produced one person"s use of the knowledge does not diminish another person"s use of it. ) Which of the following combinations will minimize the deadweight loss from a tax? ( supply 1 and demand 2 ) At q3: ( the market is efficient because the marginal social cost of production equals the marginal buyer"s value for the unit. ) Externalities tend to cause markets to be ( unnecessary. ) Which of the following is true? (producer surplus rises to c + e + i + j +k with the tariff. ) The following graph illustrates a market with a negative externality. Consider the case where the government imposes a pigouvian tax on the good illustrated below. (the presence of a marginal external cost results in the market being out of equilibrium. )
