Reference no: EM13337512

1. A tax imposed on imports is called:  A tariff A quota A comparative advantage An excise tax

2. This result proposes that private parties (consumers and producers) can solve the problem of externalities on their own. A tariff Scarce Theorem Social Optimum Theorem Coase Theorem

3. Two important characteristics of a public good are: Non-excludable and non-rival in consumption Excludable but non-rival in consumption Non-excludable but rival in consumption excludable and rival in consumption

4. The Tragedy of The Commons is a parable that illustrates:resources commonly owned are used more than is desirable resources that are privately owned are used efficiently resources that are owned by the government are more efficiently used resources that are privately owned are used more than desirable

5. The impact of one person's actions on the well-being of a bystander is called a(n): Supply Market Externality Property Rights

6. What criterion could you use to determine whether a small country named "Isoland" is a net importer of oil? (Points: 10) The world price is below the domestic price in Isoland The world price is above the domestic price in Isoland The world price equals the domestic price in Isoland THe world price fluctuates above and below the domestic price in Isoland

7. For a net importer country, a tax on imports causes: more imports and gains in total surplus more imports and loss of total surplus less imports and loss of total surplus less imports and gains in total surplus

8. If you as an economic adviser recommend the government of Isoland (a small country) to allow free trade and steel to be imported from other countries, the steel industry at Isoland most likely will oppose your decision arguing: trade destroys domestic jobs steel is used to produce guns and tanks, therefore it is a threat to national security to allow imports from other countries other countries that export to us are subsidizing their own industry and Isoland does not any of the above

9. Which one below applies to an industry that produces a negative externality? the social cost and private cost are the same the social cost exceeds the private cost the private cost exceeds the social cost the social cost is unrelated to the private cost

10. What explains that marginal cost increases as production of a product increases? inreasing cost law decreasing average cost property diminishing marginal product property law of increasing marginals thats just a sample this is not the test jeeff