1) How can a government respond to externalities? A) With command and control policies B) With command and control policies, and market-based policies C) With market restriction policies ______________________________
1) How can a government respond to externalities?
A) With command and control policies
B) With command and control policies, and market-based policies
C) With market restriction policies
______________________________
Which of the following options are market failures:
A)
B) Externalities and
C) Market power and externalities
______________________________
Which of the following statements is incorrect?
A) A minimum price that imposes an active restriction causes a surplus, which may give rise to undesirable rationing mechanisms.
B) An effect of an active constraint in a competitive market when a government sets a
C) A price ceiling that causes an active constraint in a competitive market can cause long lines to obtain the good.
______________________________
The market for donuts is in equilibrium, with an
A) The market would continue to be in equilibrium, at a price of $2 and a quantity supplied equal to the quantity demanded of 125 donuts.
B) The market price would be set at $1.50 so there would be a shortage of 30 donuts.
C) The market price would be set at $1.50 so there would be a surplus of 30 donuts.
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