mcq on perfect competition
0 out of 1 points
Private markets will always provide too few public goods because
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of the negative externalities associated with these goods. it is unlawful for private firms to provide public goods. private markets will never provide goods that they know the government could provide. the private marginal cost is less than the social marginal cost.
Correct private markets will never provide goods at a price of zero, which is the efficient price.
Question 2
0 out of 1 points
A common-property resource is one that is
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non-rivalrous and non-excludable. rivalrous and excludable.
Correct rivalrous and non-excludable. non-rivalrous and excludable.
Question 3
0 out of 1 points
The price charged for access to an uncongested, excludable non-rivalrous good should be ________ because ________.
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Correct zero; it is inefficient to exclude people from consuming this good once it has been supplied zero; the marginal benefit of the last unit consumed is zero positive; marginal cost and marginal benefit for this good are both positive positive; consumers receive a positive marginal benefit from consuming the good positive; more than one person can consume this good at the same time
Question 4
0 out of 1 points
Consider a non-rivalrous good, like national defence, provided by the government. At the socially optimal level of provision of this good, the marginal
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cost of production of this good is zero. sacrifice society needs to make to supply the last unit of the good is more than each consumer 's marginal willingness to pay. cost of production of the last unit of the good is more than all consumers ' combined marginal willingness to pay. cost of production of the last unit of the good is equal to the consumers ' marginal willingness to pay.
Private markets will always provide too few public goods because
Selected Answer:
Incorrect [None Given]
Answers:
of the negative externalities associated with these goods. it is unlawful for private firms to provide public goods. private markets will never provide goods that they know the government could provide. the private marginal cost is less than the social marginal cost.
Correct private markets will never provide goods at a price of zero, which is the efficient price.
Question 2
0 out of 1 points
A common-property resource is one that is
Selected Answer:
Incorrect [None Given]
Answers:
non-rivalrous and non-excludable. rivalrous and excludable.
Correct rivalrous and non-excludable. non-rivalrous and excludable.
Question 3
0 out of 1 points
The price charged for access to an uncongested, excludable non-rivalrous good should be ________ because ________.
Selected Answer:
Incorrect [None Given]
Answers:
Correct zero; it is inefficient to exclude people from consuming this good once it has been supplied zero; the marginal benefit of the last unit consumed is zero positive; marginal cost and marginal benefit for this good are both positive positive; consumers receive a positive marginal benefit from consuming the good positive; more than one person can consume this good at the same time
Question 4
0 out of 1 points
Consider a non-rivalrous good, like national defence, provided by the government. At the socially optimal level of provision of this good, the marginal
Selected Answer:
Incorrect [None Given]
Answers:
cost of production of this good is zero. sacrifice society needs to make to supply the last unit of the good is more than each consumer 's marginal willingness to pay. cost of production of the last unit of the good is more than all consumers ' combined marginal willingness to pay. cost of production of the last unit of the good is equal to the consumers ' marginal willingness to pay.