Answer all multiple choice questions in micro Economics
1. Keeping landing fees low at airports during the "peak" hours
1. Perpetuates congestion during those hours
2. Is politically unpopular
3. Contributes to efficient allocation of airport facilities
4. Would lessen the problem of delaying flight landing
2. Which of the subsequent statements is correct?
1. Low prices may not always be in the public interest
2. If price on scarce resources are set "too low," consumers will receive the "wrong" signals and be encouraged to consume more, thus squandering resources
3. Raising prices on scarce resources is generally politically unpopular
4. All of the above are correct
3. When economies of scale exist,
1. Production costs per unit increase as output expands
2. Production costs per unit decline as output expands
3. Total production costs decrease
4. Total production costs increase
4. Economies of scope are savings acquired by
1. Producing many goods simultaneously
2. Producing enough of one good to reach the minimum efficient scale of production
3. Selling one product at a loss, but selling other products at profit
4. Decreasing the regulation of the company
5. A market structure in which only one company has survived because of its economies of scale called a
1. Natural monopoly
2. Planned monopoly
3. Structural monopoly
4. Free monopoly
6. It is efficient to increase the output of computers if
1. Society considers the additional computers more valuable than goods forgone to capable to produce the computers
2. The opportunity cost of more computers is greater than their marginal utility
3. Computer production can be increased only if production of other goods is decreased
4. The price of the computers is equal to their average cost
7. Many detrimental externalities occur because
1. Persons do not pay the full social cost of using a resource
2. Persons do not pay the full private cost of using a resource
3. Companies do not pay the market price for natural resources
4. Companies pay more than the full social cost of using a resource
8. It is true of externalities which they
1. Arise when all costs, social and private, are included an production cost
2. Are always identical
3. Are always detrimental
4. None of the above is true
9. Students in a class are assigned to group to work on a project. A grade will be given for each project, and everyone in the group will receive which grade) For the members of a particular group, the grade is
1. Beneficial externality
2. Public good
3. Detrimental externality
4. Moral hazard