Microeconomics Exam #2 Section 1

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Posted on

May 24th, 2023

question

Private

answer

A _________ cost of a good or service is the cost borne by the producer

question

False- A market failure is when the market fails to produce the efficient level of output

answer

T/F A market failure arises when an entire sector of the economy collapses because of some unforeseen event.

question

little

answer

When there is a positive externality in a free market, to________ of the good is produced and consumed.

question

T-When there is a negative externality, too much of the good or service will be produced at equilibrium.

answer

T/F When there is a negative externality, the competitive output is more than the economically efficient output level.

question

T-The marginal benefit from pollution reduction should equal the marginal cost.

answer

T/F Conceptually the efficient level of carbon emissions is the level for which the marginal benefit of reducing carbon emissions is equal to the cost of reducing carbon emissions

question

False- Social costs exceed private costs

answer

T/F A negative externality exists if the private cost of producing a good or service exceeds the social cost

question

False- 0 is economically ineffiecient

answer

T/F In economics the optimal level of pollution is 0

question

Low, High- In Negative externalitities, the supply curve shifts left and up

answer

If there is pollution in producing a product, then the market equilibrium price is too _______ and the equilibrium quantity is too_______

question

True

answer

T/F In negative externalities, the efficient output level is where marginal SOCIAL cost (the top curve) intersects the demand curve

question

answer

T/F Private profit is where the PRIVATE COST curve (bottom curve) intersects the demand curve

question

...

answer

Tax brings about efficient level by (p2-p0)- Price paid by consumers- price received

question

Net benefit

answer

In economics, the optimal level of pollution is the level for which the ________ from reducing the pollution is the greatest

1 of 12

question

Private

answer

A _________ cost of a good or service is the cost borne by the producer

question

False- A market failure is when the market fails to produce the efficient level of output

answer

T/F A market failure arises when an entire sector of the economy collapses because of some unforeseen event.

question

little

answer

When there is a positive externality in a free market, to________ of the good is produced and consumed.

question

T-When there is a negative externality, too much of the good or service will be produced at equilibrium.

answer

T/F When there is a negative externality, the competitive output is more than the economically efficient output level.

question

T-The marginal benefit from pollution reduction should equal the marginal cost.

answer

T/F Conceptually the efficient level of carbon emissions is the level for which the marginal benefit of reducing carbon emissions is equal to the cost of reducing carbon emissions

question

False- Social costs exceed private costs

answer

T/F A negative externality exists if the private cost of producing a good or service exceeds the social cost

question

False- 0 is economically ineffiecient

answer

T/F In economics the optimal level of pollution is 0

question

Low, High- In Negative externalitities, the supply curve shifts left and up

answer

If there is pollution in producing a product, then the market equilibrium price is too _______ and the equilibrium quantity is too_______

question

True

answer

T/F In negative externalities, the efficient output level is where marginal SOCIAL cost (the top curve) intersects the demand curve

question

answer

T/F Private profit is where the PRIVATE COST curve (bottom curve) intersects the demand curve

question

...

answer

Tax brings about efficient level by (p2-p0)- Price paid by consumers- price received

question

Net benefit

answer

In economics, the optimal level of pollution is the level for which the ________ from reducing the pollution is the greatest

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