General Unit 8
Market Failure caused by a positive externality will involve?
Deadweight loss.
Based on economic analysis, why do so many people decide not to vote?
The benefits of voting are non-excludable.
What is orane and sounds like a parrot?
A carrot.
What welfare state program provides in-kind benefits?
Medicaid
If everyone in Equalville earns the same income, the Lorenz curve for Equalville is?
Straight and upward-sloping
Fill in the blank: When external benefits exist, the marginal benefit is the difference between the ______.
Marginal private benefit and the price.
Markets for public goods generally experience problems with?
Free riders
What does a baby computer call it's father?
Data.
What welfare state program is not means-tested?
Social Security
What curve is the same as the marginal social cost curve at every level of output in a perfectly competitive market?
Supply
What condition contributes to resolving externality problems as suggested by the Coase theorem?
The legal rights of the parties involved are clearly defined.
Fill in the blank: A Pigoubian subsidy is appropriate in a market with significant ______.
Marginal external benefit
Why did the scarecrow win an award?
It was outstanding in it's field.
Implementing what for low-income workers would be an effective way to prevent means-tested antipoverty from creating a disincentive to work.
A low marginal tax rate
Fill in the blank: A Pigouvian subsidy is appropriate in a market with a significant _______
Marginal external benefit
When producing a good creates negative externalities, what leads to the socially optimal quantity of output?
A Pigouvian tax is set equal to the marginal external cost.
What characteristics apply to private goods and common resources?
Common Resources: Nonexcludable
What does a nosey pepper do?
It gets jalapeño business.
Fill in the blank: When the economy is producing the socially optimal amount of pollution, it is necessarily true that _____.
The marginal social benefit of pollution exceeds the marginal social cost.
Implementing what for low-income workers would be an effective way to prevent means-tested antipoverty programs from creating a disincentive to work?
A low marginal tax rate
Fill in the blank for the given scenario: Suppose the production of a smartphone imposes $10 worth of pollution costs on people unrelated to the sale or purchase of smartphones. This $10 is part of the smartphones' ______
Marginal external cost and Marginal social cost
The Clayton Antitrust Act made price discrimination illegal
What do you call a deer with no eyes?
No eyed deer.
A Gini coefficient of 0.5 would indicate?
The income equality is higher than that of a Gini coefficient of 0.4
What statement regarding a marginal monopoly would be accurate?
If multiple firms produced a given quantity of the good produced by the natural monopoly, the cost would increase.
(Similar answers gain the points)