1. When a positive externality exists, the quantity of a good produced by the market will be:

too high

too low

just right

67,320.2

2. By the definition, externalities mean that we have a divergence between

private cost and social cost

social cost and unitary cost

private debt and social cost

social benefits and private production

3. AC Pigou says the best way to deal with externalities is

negotiation

granting property rights

quotas

taxes and subsidies

4. ___________ information means that one party knows something important about the transaction that the other party does not.

bilateral

asymmetric

real

bifurcated

5. Regulations are created by the

executive branch

judicial branch

Congress

Warden of the North

6. The process by which we decide how much to value the future compared with the present is called:

regulating

discounting

balancing

integrating

7. When the banks are allowed to write the rules and regulations for banks, write them in a way that favors banks, then have the government pass them, it is called:

regulatory capture

premium discounting

social welfare function

policy lassoing

8. The creation of the Federal Reserve, the Affordable Care Act, and Banking deregulation and re-regulation after the financial panic are all believed to be free of regulatory capture.

True

False

9. The Trump Administration actually didn't eliminate many regulations, because that is hard to do, they have modified them to make it easier or harder to do certain things.

True

False

10. The Trump Administration actually didn't deregulated at all, it was the Obama administration which actually cut down the number of pages in the Federal Register.

True

False