《江西财经大学微观经济学试题库》part 5 review.docVIP

Microeconomics, 10e (Parkin) Part 5 Review Market Failure and Government 1) A non-crowded freeway is A) rival and nonexcludable B) nonrival and excludable C) nonrival and nonexcludable D) rival and excludable Answer: C Topic: Public Goods Skill: Analytical Question history: New 10th edition AACSB: Analytical Skills 2) A crowded freeway during the rush hour is A) rival and nonexcludable B) nonrival and excludable C) nonrival and nonexcludable D) rival and excludable Answer: A Topic: Common Resource Skill: Analytical Question history: New 10th edition AACSB: Analytical Skills 3) Street lights are a public good. If street lights were provided by the private market, at the equilibrium quantity, it would be the case that A) MSB = MSC B) MSC MC C) MSB MSC D) MSB MB Answer: C Topic: Public Goods Skill: Analytical Question history: New 10th edition AACSB: Analytical Skills 4) The marginal private cost of a chemical is $80 per ton and its marginal external cost is $10 per ton. What is the marginal social cost of the chemical? A) $70 per ton B) $85 per ton C) $90 per ton D) $45 per ton Answer: C Topic: Marginal Social Cost Skill: Analytical Question history: Previous edition, Part Review 5 AACSB: Analytical Skills 5) The marginal social cost of a chemical is $45 per ton and its marginal private cost is $30 per ton. What is the marginal external cost of the chemical? A) $75 per ton B) $30 per ton C) $15 per ton D) zero Answer: C Topic: Marginal External Cost Skill: Analytical Question history: Previous edition, Part Review 5 AACSB: Analytical Skills 6) At the current level of output, the marginal social cost of paper is $30 per ton and its marginal private cost is $20 per ton. The marginal social benefit from paper is $20 per ton. The market for paper is competitive and unregulated. This means that at the current level of production A) the market for paper is in equilibrium. B) the efficient quantity of paper is produced. C) there is a shortage