Market Failure (chegg)

Question 1

A well-maintained water-front property that is enjoyed by other property owners is an example of

Answer 1

Positive consumption externality

Question 2

According to public choice theory, a voter will favor a candidate whose political program is

Answer 2

perceived by the voter to be in his self-interest

Question 3

The figure shows the private marginal cost curve, the social marginal cost curve and the market demand curve. If the market is unregulated, then the quantity produced is

Answer 3

Q3

Question 4

The figure shows the private marginal cost curve, the social marginal cost curve and the market demand curve. If the market is unregulated, then at the equilibrium output the marginal social cost of production is

Answer 4

greater than the marginal benefit to consumers

Question 5

Which of the following goods is nonexcludable?
a. a toll bridge
b. a taxi
c. the atmosphere
d. an art museum

Answer 5

the atmosphere

Question 6

For a private good, the economy’s marginal social benefit curve is the ____ sum of the individual marginal benefit curves and for a public good, the economy’s marginal social benefit curve is the____ sum of the individual marginal benefit curves.

Answer 6

horizontal;vertical

Question 7

One way to alleviate the tragedy of the commons is to

Answer 7

make a resource private property

Question 8

One way to solve negative externality problems is

Answer 8

issue marketable permits to polluting firms

Question 9

Governments provide public goods such as national defence because

Answer 9

of the free-rider problem which results in underproduction by private firms

Question 10

Which of the following is NOT a statutory intellectual property right?
a. patents b. trademarks c. copyright d. registered industrial designs e. trade secrets

Answer 10

trade secrets