University of Louisiana, Lafayette - ECON 528 Module 7 Homework Assignment

University of Louisiana, Lafayette - ECON 528 Module 7 Homework Assignment 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 20.00/20.00 Gr ade 10.00 out of 10.00 (100%) ECON528-850-ECON528-010- 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 — — 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