1) A new Craft Beer company enters the market and introduces a new range of ales. These ales are based on local organic hops with a distinct flavour. The Craft Beer market is also a monopolistic market. After these new ales are released, which externality are beer-consumers likely to experience?

Select one:

a.business-stealing

b.advertising

c.competitive

d.product-variety

2) Suppose a Government agency is undertaking a cost-benefit analysis on a new toll road. Which of the following costs or benefits would be the hardest to estimate?

Select one:

a.The cost of adding cycle lanes to the road.

b.The reduction in road deaths generated by the improved road design

c.The labour costs of building the road

d.The reduction in fuel spending by trucking companies using the road

3) Suppose a farmer decides to convert their sheep farm to a vineyard to grow grapes. The amount of money the farmer could have earned by sheep farming instead is called

Select one:

a.an accounting cost

b.an explicit cost

c.an implicit cost

d.a variable cost