26 practice sets · Page 2 of 2
Which of the following solutions are not part of the ways of internalizing externalities:
the imposition of fines on the producer of negative externalities
the introduction of taxes and duties that bring private costs to the level of social costs
closure of companies producing positive or negative externalities
the association of the negative externality manufacturer with the receptor of such an effect
Which of the following features define human needs:
are not concurrent
do not disappear momentarily if they are satisfied
are unlimited in capacity
are unlimited in number
Which of the following conditions indicate that a good is produced under perfect competition:
producers profits are high
producers profits are small
total supply is inelastic
individual demand is perfectly elastic
Which of the following can be considered as the basic features of public goods:
are state-owned
are characterized by non-excludability and non-rivalry
are characterized by excludability and rivalry
may be positive or negative
The profit maximization condition for a firm in a market with monopolistic competition is the following (MR is marginal revenue, MC is marginal cost, P is price, ATC is average total cost, TR is total revenue):
MR = MC
MC = P
MR = ATC
TR to be maximum
Normally, the natural economy is characterized by:
price formation through complex mechanisms
perfect competition
the preponderance of product exchange
the satisfaction of the individual and community needs of its own production
