佛州州立《微观经济学》题库第六版 Ch18.doc

MULTIPLE CHOICE Section 18.1 easy 1. Externalities are not reflected in market prices, so they can be a source of economic inefficiency. do become reflected in market prices, so they can be a source of economic inefficiency. are not reflected in market prices, so they do not adversely affect economic efficiency. do become reflected in market prices, so they do not adversely affect economic efficiency. may or may not become reflected in market prices, but do not have an impact on economic efficiency in either event. easy 2. Constructing plastic containers produces air pollutants. Therefore, in the market for plastic containers, the marginal social cost curve is above and to the right of the demand curve. the marginal social cost curve is below and to the left of the demand curve. the marginal social cost curve is above and to the left of the supply curve. the marginal social cost curve is below and to the right of the supply curve. there is a gap between quantity supplied and quantity demanded in equilibrium. easy 3. Dry cleaning of clothing produces air pollutants. Therefore, in the market for dry cleaning services, equilibrium price and output are too low to be optimal. and output are too high to be optimal. is too low to be optimal, and equilibrium quantity is too high. is too high to be optimal, and equilibrium quantity is too low. is optimal, but there is an excess supply. easy 4. The presence of pollution in the dry cleaning industry leads in the long run to dynamic inefficiencies because people will buy fewer clothes that need dry cleaning than they otherwise would have. people will develop substitutes for dry cleaning that are wasteful. firms will be induced to leave the industry because of artificially high costs. firms whose average private cost is less than price will stay in (or enter) the dry cleaning industry even though their average social cost exceeds price. firms whose average private cost exceeds the price will exit (or fail to enter) the dry clea