7. Negative externalities cause the social cost curve to lie ____ the private cost curve
Above
Below
8. Public goods - it is difficult, if not impossible, to _____ for them directly.
Consume
Charge
Pay
9. Both excludable and rival
Quasi public good
Private good
Public good
10. Merit goods and demerit goods are both examples of ?
Market failure
Both
Information failure
11. Which of these is an example of a quasi public good?
A bottle of tropicana juice
Toll roads
Street light
12. What is a merit good?
Merit goods have more private benefits than consumers actually realise
Merit goods, their consumption is more harmful than consumers realise.
13. What are negative externalities?
Negative externalities occur when the first parties do not benefit from third party actions.
Negative externalities occur when the social costs are greater than the private costs.
Negative externalities occur when the private costs are greater than the social costs .
14. What is a demerit good?
Demerit goods, their consumption is more harmful than consumers realise
Demerit goods have more private benefits than consumers realise
15. Which of these is NOT a public good?
Police service
Can of coke
Street light
16. What is a positive externality?
Positive externality occurs when the social benefit is greater than the private benefit
Positive externality occurs when the private benefit is greater than the social . benefit
17. Value judgements often have to made. Usually by government - assumption is made that these organisations know better than individuals what is good or bad for them. Are all?
Problems when considering whether certain goods are merit or demerit goods
Characteristics neccesary when considering whether a good is merit or demerit.
18. Negative externalities result in?
Overproduction
Underproduction
19. Up to a point, extra consumers using a park, beach or road do not reduce the amount of the product available to other consumers. Eventually additional consumers reduce the benefits to other users. This is?
Semi non-rival
Semi non-excludable
20. If left to the free market, most public goods would not be provided, despite the benefit they give to those who consume them.
