Month: May 2019

A. externality
B. market imperfection
C. deadweight burden
D. free rider

A. public transport
B. the national health service
C. national defence
D. rail transport

A. imperfect competition
B. taxation
C. externalities
D. missing markets
E. all of the above

A. a production externality
B. a second-best solution
C. transaction costs
D. a consumption externality

A. Producers are price takers
B. consumers and producers face the same prices
C. marginal costs and benefits are equal
D. prices equal marginal cost and benefit
E. All of the above

A. moral hazard
B. risk aversion
C. adverse selection
D. a poor gamble

A. Assuming other players move first
B. dominated by the other players
C. given the strategies of other players
D. that is a credible threat

A. behave like competitive firms
B. agree to act together
C. differentiate their products
D. practice price discrimination

A. monopolistic competition
B. oligopoly
C. monopoly
D. unfair competition

A. is the way in which a tax is structured
B. is the ultimate distribution of a tax’s burden
C. occurs when taxes cause prices to increase but wages to fall
D. occurs when house hold can alter their behaviour and do something to avoid paying a tax.