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Econ001-IntroEconSingaporeManagementUniversity
JungwonYeoTerm2,2013/14
AnswerKeytoSGProblemSet07
PARTI:ReviewQuestions
1.False(undersupply→oversupply)
2.b(Whenthereisapositiveexternality,thefreemarketoftenleadstoanoutputlevelsmallerthanthe
sociallydesirablelevel)
3.b4.True5.c
6.a(Thisisabouthiddenactionoftheinformed
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