Unit 2 EXAM

To find the marginal social benefit curve for a private good, we sum the individual marginal benefit curves ___ And to find the marginal social benefit curve of a public good, we sum the individual marginal benefit curves vertically; with the social marginal benefit curves ___.

horizontally; vertically

Which of the following items is an example of a noneacludable and nonrival good or resource?

national defense

Classify the following senices for computer owners with an Internet connection as rival, nonrival excludable, or nonexcludable. MyEconLab'Web site is ___

nonrival and excludable

Classify the following senices for computer owners with an Internet connection as rival, nonrival excludable, or nonexcludable. A Twitter page is ___

nonrival and excludable or nonexcludable

Classify the following senices for computer owners with an Internet connection as rival, nonrival excludable, or nonexcludable. eBay is ___

nonrival and nonexcludable

The three main methods that can be used to achieve the efficient use of a common resource are ___.

property rights, production quotas, and ITQs

Classify the following senices for computer owners with an Internet connection as rival, nonrival excludable, or nonexcludable. A mouse is ___

rival and excludable

When a production quota is used that makes the market for a common resource efficient, ___.

the production quota is set for total production at the quantity at which marginal social benefit equals marginal social cost

Choose the statement about ITQs that is correct.

A market in ITQs emerges. ITQs are traded at their market price. An ITQ system is used when producers are difficuh to monitor and where marginal costs differ across producers.

Choose the statement about ITQs that is incorrect.

ITQs, like production quotas in other markets: produce a deadweight loss.

Which of the following items is an example of an excludable and rival good or resource?

a DVD