A country has several factories that emit sulfur dioxide. The main methods that the government can use to overcome the accompanying environment externalities include all of the following EXCEPT
A) cap-and-trade.
B) mandating clean technology.
C) subsidies.
D) taxes.
Ques. 2Rational ignorance says that voters will
A) understand the technology before voting on defense.
B) vote on issues without having complete information.
C) gather information on issues that are not important.
D) not vote on issues that they do not understand.
Ques. 3The table above lists the market shares of the twenty makers of personal computers. The four-firm concentration ratio tells us that
A) the four largest firms have 20 percent of the market.
B) there are no barriers to entry in this market.
C) the firms sell differentiated products.
D) all firms sell identical products.
Ques. 4A deadweight loss occurs whenever
A) the total benefit of a good does not equal its total cost.
B) the marginal social benefit of a good does not equal its marginal social cost.
C) there is perfect price discrimination.
D) there is no consumer surplus.
Ques. 5All points below a given indifference curve are
A) less preferred to any point on the indifference curve.
B) preferred to any point on the indifference curve.
C) definitely affordable.
D) Both answers A and C are correct.
Ques. 6Marginal utility theory is used in the derivation of the
A) negative slope of demand curves.
B) negative slope of supply curves.
C) positive slope of demand curves.
D) positive slope of supply curves.
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