Micro- Chapter 4&13 Launchpad questions

the government often provides goods that are non-rival and non-excludable to overcome which market failure?

public goods

which is one of the reasons why markets fail?

a mismatch of information

implementing a price ceiling can cause:

a shortage

a price ceiling is ____ if it is set ___ the market price

effective, below

which of these would NOT yield an external cost?

helping an elderly person across the street

driving your car in a larger city during rush hour causes externalities because:

it adds to road congestion and pollution

which of these would be considered a public good?

national defense

the government often strictly regulates noise and chemical pollution by industry to overcome which market failure?

negative externalities (external costs)

if a price ceiling is set above the equilibrium price:

no impact is felt in the market

flu vaccination shots provide external benefits. thus:

too few flu vaccinations shots are given

which of the following price floors for milk would not cause a surplus in the market if the equilibrium price for milk is $3.60?

$3.50

if a government imposes a $2 maximum price on a gallon of gasoline in the petroleum market, this would be an example of:

a price ceiling

which of these is a positive externality?

a star basketball player's presence on television increases revenue at sports bars

implementing a price floor can cause:

a surplus

getting a flu shot reduces the chances of spreading the illness to one's classmates and friends. why, then, is this considered a market failure due to external benefits?

because the number of people who obtain flu shots is less than the socially optimal quantity

jessica lists her faulty treadmill for sale on craigslist but does not disclose the problems with it. if Blake buys the treadmill believing that it's problem-free, this is an example or market failure due to:

lack of information

public goods are difficult to provide in the private market because they have the characteristics of:

non-rivalry and non-excludability

a price ceiling usually results in a:

shortage and a misallocation of resources

the best definition of externalities is:

the economic effects of individual actions on third parties:

markets tend to produce:

too much of a good exhibiting external costs

public goods tend to be ____ because the provider of the good cannot prevent someone from enjoying the good without paying for it, which means the good is ____

underproduced non-excludable

suppose the equilibrium price of carrots is $1. the price floor instituted by the government is $1.50. based on this information, which of the following would you expect to take place in the market?

we would expect to see a surplus of carrots