A. private costs, private benefits
B. private costs, social costs or benefits
C. social costs, social benefit
D. insiders, outsiders
Related Mcqs:
- 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 - Externalities are a problem only if ?
A. decision makers do not take them into account
B. all firms are perfectly competitive
C. the externalities are negative
D. all firms are monopolistic - 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 - Market failure may arise because of ?
A. imperfect competition
B. taxation
C. externalities
D. missing markets
E. all of the above - Regulations that arise to ensure that firms take responsibility for the social costs of their products or production processes stem from which reason for government legislation of business ?
A. To protect companies form each other
B. To protect consumers from unfair business practices
C. To protect the interests of society
D. To protect businesses from unfair consumer demands - ________ is setting the price steps between various products in a product the based on cost difference between the products, customer evaluations of different features, and competitors prices ?
A. Optional-product pricing
B. Captive-product pricing
C. Product line pricing
D. By-product pricing - A monetary union means ________, ________ and ________?
A. permanently fixed capital movements floating exchange rates a fixed structure of interest rates
B. permanently fixed exchange rates, free capital movements, a single interest rates
C. a common currency a single central bank, common monetary policy
D. a common currency floating exchange rates common monetary policy - One of the transmission mechanisms of monetary policy is through consumer demand when interest rates ________ household wealth ________ and consumption _________?
A. rise; increase, increase
B. rise, falls, increase
C. rise, increase, falls
D. rise, falls, falls - Assume That the firms operate as purely competitive sellers (a purely competitive industry) In the long run, equilibrium price equals _________ quantity equals _________ and profits total _________?
A. $100, 2 million barrels per day $60 million
B. $80, 4 million barrels per day $70 million
C. $60, 6 million barrels per day, $20 million
D. $40, 8 million barrels per day, $0 million - When ________ substitutes exist, a monopolist has ________ power to raise price?
A. more; more
B. fewer; less
C. more; less
D. no; infinite
