Externalities are a problem only if ?

Related Mcqs:

1. The idea that when externalities are present private parties can arrive at the efficient solution without government intervention under certain circumstance is known as ?

   A. The coase theorem
   B. Arrow’s impossibility theorem
   C. the drop -in-the bucket problem.
   the free rider problem

2. Externalities arise because there is a divergence between ________ and _________?

   A. private costs, private benefits
   B. private costs, social costs or benefits
   C. social costs, social benefit
   D. insiders, outsiders

3. According to the Coase theorem, private parties can solve the problem of externalities if ?

   A. there are no transaction costs.
   B. each affected party has equal power in the negotiations.
   C. the party affected by the externality has the initial property right to be left alone.
   D. There are a large number of affected parties.
   E. the government requires them to negotiate with each other

4. A person will continue to pursue an activity up to the point where ?

   A. Marginal benefit equals marginal damage cost
   B. marginal benefits equals marginal social cost
   C. marginal benefit equals marginal private cost
   D. marginal social cost equals marginal external cost

5. The internet evolved from a network created by ________ during the 1960s?

   A. the Commerce Department
   B. the Massachusetts institutes of Technology (MIT)
   C. Northwestern University
   D. the Defense Department

6. Which of the following promotional budget methods wrongly views sales as the cause of promotion rather than as the result ?

   A. Affordable method
   B. Percentage of Sales method
   C. Competitive parity method
   D. Objective and task method

7. _______ is the step in the selling process in which the salesperson learns as much as possible about a prospective customer before making a sales call?

   A. Prospecting
   B. Preapproach
   C. Approach
   D. Handling objections

8. A ________ is any activity or benefit offered for sale that is essentially intangible and does not result in the ownership of anything?

   A. demand
   B. basic staple
   C. product
   D. service

9. Yahoo, Infoseek, and Baido are all called ?

   A. browsers
   B. Webcasters
   C. search engines
   D. software

10. Given recent information about growth trends and growth potential of ethnic populations within the U.S market which of the following ethnic groups would be a best bet to double during the next half century and become one of the U.S market’s most viable segments ?

    A. Hispanics and Asians
    B. African Americans
    C. Western Europeans
    D. Middle Eastern