2a)
A market in which there are neither external benefits nor external costs is:
Select one:
a. efficient.
b. inefficient.
c. efficient and equitable.
d. impossible.
2b)
According to the special-interest theory of government, government officials and policymakers:
Select one:
a. are assumed to maximize social good.
b. tend to listen to small groups of people who contribute money to their political campaigns.
c. manage resources to maximize efficiency.
d. have a strong incentive to ensure that society's members equally benefit from a project.
2c)
Scientific research is subsidized by the government because
Select one:
a. it yields benefits to consumers and producers who did not participate in the research.
b. researchers are under-paid by private firms, so the government must make up the difference.
c. much scientific research takes place at state-funded universities.
d. scientific research has no market value so would not be undertaken without government intervention.
2d)
The forces of supply and demand will provide a quantity that is
Select one:
a. less than the efficient quantity if a good generates external benefits.
b. more than the efficient quantity if a good generates external benefits.
c. exactly the efficient quantity if a good generates external benefits.
d. either more than or less than the efficient quantity if a good generates external benefits. It is impossible to know whether it will be too much or too little without more information.
2a)
A market in which there are neither external benefits nor external costs is:
Select one:
a. efficient.
b. inefficient.
c. efficient and equitable.
d. impossible.
2b)
According to the special-interest theory of government, government officials and policymakers:
Select one:
a. are assumed to maximize social good.
b. tend to listen to small groups of people who contribute money to their political campaigns.
c. manage resources to maximize efficiency.
d. have a strong incentive to ensure that society's members equally benefit from a project.
2c)
Scientific research is subsidized by the government because
Select one:
a. it yields benefits to consumers and producers who did not participate in the research.
b. researchers are under-paid by private firms, so the government must make up the difference.
c. much scientific research takes place at state-funded universities.
d. scientific research has no market value so would not be undertaken without government intervention.
2d)
The forces of supply and demand will provide a quantity that is
Select one:
a. less than the efficient quantity if a good generates external benefits.
b. more than the efficient quantity if a good generates external benefits.
c. exactly the efficient quantity if a good generates external benefits.
d. either more than or less than the efficient quantity if a good generates external benefits. It is impossible to know whether it will be too much or too little without more information.
