ECN 212 EXAM 2 (ASU) QUESTIONS AND ANSWERS
Public goods are:
A. separately consumed and non-excludable
B. separately consumed and excludable
C. jointly consumed and non-excludable
D. jointly consumed and excludable - CORRECT ANSWER✅✅jointly consumed and non-excludable
A free rider is someone that is forced to pay for a good he or she does not want.
(T or F) - CORRECT ANSWER✅✅False
The two major functions of government are:
A. predictive and protective
B. promotive and predictive
C. protective and productive
D. productive and predictive - CORRECT ANSWER✅✅protective and productive
When there is a lack of competition, prices tend to be _________ than equilibrium price, while the
quantity produced tends to be ________ than equilibrium quantity.
A. higher, lower
B. lower, higher
C. lower, lower
D. higher, higher - CORRECT ANSWER✅✅higher, lower
When positive externalities are present, the ________ curve ________ the total value of the output.
A. demand, overstates
B. demand, understates
C. supply, overstates
, D. supply, understates - CORRECT ANSWER✅✅demand, understates
When negative externalities are present, the ________ curve ________ the total value of the output.
A. demand, overstates
B. supply, understates
C. demand, understates
D. supply, overstates - CORRECT ANSWER✅✅demand, overstates
Which of the following is not a market response to markets with poor information?
A. warranties
B. brand names and franchises
C. consumer information publications
D. lower sales taxes - CORRECT ANSWER✅✅lower sales taxes
A public good is identified as a public good depending on who produces it.
(T or F) - CORRECT ANSWER✅✅False
Which of the following is necessary for economic efficiency?
A. all activities that provide individuals with more benefits than costs must be undertaken
B. no activities that provide benefits less than costs should be undertaken
C. all publicly provided goods must be made available to everyone
D. all of the above
E. Both A and B - CORRECT ANSWER✅✅Both A and B
Anything worth doing is worth doing to the best of your ability.
(T or F) - CORRECT ANSWER✅✅False
Public goods are:
A. separately consumed and non-excludable
B. separately consumed and excludable
C. jointly consumed and non-excludable
D. jointly consumed and excludable - CORRECT ANSWER✅✅jointly consumed and non-excludable
A free rider is someone that is forced to pay for a good he or she does not want.
(T or F) - CORRECT ANSWER✅✅False
The two major functions of government are:
A. predictive and protective
B. promotive and predictive
C. protective and productive
D. productive and predictive - CORRECT ANSWER✅✅protective and productive
When there is a lack of competition, prices tend to be _________ than equilibrium price, while the
quantity produced tends to be ________ than equilibrium quantity.
A. higher, lower
B. lower, higher
C. lower, lower
D. higher, higher - CORRECT ANSWER✅✅higher, lower
When positive externalities are present, the ________ curve ________ the total value of the output.
A. demand, overstates
B. demand, understates
C. supply, overstates
, D. supply, understates - CORRECT ANSWER✅✅demand, understates
When negative externalities are present, the ________ curve ________ the total value of the output.
A. demand, overstates
B. supply, understates
C. demand, understates
D. supply, overstates - CORRECT ANSWER✅✅demand, overstates
Which of the following is not a market response to markets with poor information?
A. warranties
B. brand names and franchises
C. consumer information publications
D. lower sales taxes - CORRECT ANSWER✅✅lower sales taxes
A public good is identified as a public good depending on who produces it.
(T or F) - CORRECT ANSWER✅✅False
Which of the following is necessary for economic efficiency?
A. all activities that provide individuals with more benefits than costs must be undertaken
B. no activities that provide benefits less than costs should be undertaken
C. all publicly provided goods must be made available to everyone
D. all of the above
E. Both A and B - CORRECT ANSWER✅✅Both A and B
Anything worth doing is worth doing to the best of your ability.
(T or F) - CORRECT ANSWER✅✅False
