Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 11, Problem 5CQQ
To determine
Characteristic of a public good.
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This is a form of governmental public policy that has been implemented to reduce the purchase of cigarettes and alcohol.
A.Marketing limitations
B.Raising the legal age
C.Vending machine regulations
D.Taxation
An example of a barrier to entry in a market is:A. Lack of profitable opportunities.B. Increasing cost of production.C. Inelastic market demand.D. Government licensing requirement.
The following statements are FALSE about market failures EXCEPT
a.An efficient monopoly in allocating its resources causes a large consumer surplus.
b.Price mechanism in the private market allow limited resources to be efficiently used.
c.Market mechanism provide an opportunity to enter a perfectly competition market.
d.Market mechanism are not the best tool to distribute resources fairly.
Chapter 11 Solutions
Essentials of Economics (MindTap Course List)
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- Which of the following is least likely to be associated with market failure, and is consequently least likely to require any form of state regulation or intervention? OA Hake fishing off the west coast of South Africa OB. The provision of education services in government schools OC The provision of education services in private schools D. The market for fast foods Fi Previeus page E s heretosarrow_forwardMarket failure can be caused by Select one: a. externalities and market power Ob. government intervention and price controls O c. high prices and foreign competition d. low consumer demandarrow_forwardWhich of the following is NOT an example of government intervention in the market? a. Corporate social responsibility b. Use of competition policy to prevent mergers c. Regulation prices d. Legislation banning the sale of the productarrow_forward
- Patents give entrepreneurs a __on their ideas. * a. price floor. b. price ceiling. c. negative externality. d. positive externality. e. monopoly. True or false: Patents have costs and benefits when it comes to encouraging idea creation and adoption. * a. True. b. False.arrow_forwardThe government must provide public goods such as national defense because a. the production of public goods requires economies of scale that the private sector cannot achieve b. t is generally impossible to exclude individuals who value public goods but do not pay for them c. public goods cannot be produced in private competitive markets, since they have highly inelastic demand d. private producers charge a price that is substantially greater than marginal cost e. no single individual should have to pay for public goods, since they benefit society as a wholearrow_forwardWhat is true with market failure? A. the market becomes more efficient in allocating the resources to its best uses B. there is an overproduction of goods and services with positive externalities C. there is an underproduction of goods and services with negative externalities D. there is market concentration or less competition E. no correct answerarrow_forward
- Suppose that the government instituted a per-unit tax on the output of a monopoly firm. A. graph this situation? B. On the same graph show what would happen to the market equilibrium after implementation of such a tax? C. On the same graph how would you show which economic actor pays most of the tax? You are to not only draw the graph but also explain the answerarrow_forwardProvide the correct answer please ... If there are no externalities a competitive market achieves economic efficiency. If there is anegative externality, economic efficiency will not be achieved because a. too much of the good will be produced. b.a deadweight loss will occur that is equal to the area under the demand curve for the good. c.too little of the good will be produced. d.economic surplus is maximized.arrow_forwardMarket failure can be caused by Select one: O a. government intervention and price controls Ob. externalities and market power Oc. low consumer demand O d. high prices and foreign competitionarrow_forward
- Some economists argue that government intervention is needed in addressing the issue of market failure. Yet governments also sometimes fail to implement policies or regulations properly and effectively. Explain why this situation can occur. Please discuss and with diagram if possible Subject : Industrial Regulationarrow_forwardQ35 Which of the following phenomena is NOT an example of market failure? a. A positive externality. b. Diminishing marginal returns. c. Moral hazard. d. Asymmetric information. e. Public goods.arrow_forward$15 $12 $8 28 Select one: a. $7 b. $3 500 700 C. $4 d. $15 Supply Social value Demand The figure above shows a market for Softella medicated tissues. Assume the only use for the tissues is to wipe and clean your hands, which prevents the spread of germs to others. If the government were to subsidize the users of the tissues, what would be the dollar amount of the subsidy? Quantity of boxes of so ftella medicated tissuesarrow_forward
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