1) Which of the following describes a market failure when one individual's activities unintentionally affect someone else?

Select one:

a.monopoly power

b.market competition

c.public goods

d.externalities

2) To be effective, a price support should be set

Select one:

a.above the equilibrium price

b.at the equilibrium price

c.at the equilibrium quantity

d.below the equilibrium price

3) To be effective, a price ceiling should be set

Select one:

a.at the equilibrium price

b.above the equilibrium price

c.at the equilibrium quantity

d.below the equilibrium price

4) Which of the following are strategies that farm operators use to manage risk?

Select one:

a.all are considered strategies used to manage risk

b.financial leverage

c.insurance on crop yield

d.enterprise diversification

5) Consumer and producer surplus are measured in units of

Select one:

a.widgets

b.quantities

c.dollars

d.tons

6) Which of the following correctly describes the welfare effects from a price support?

Select one:

a.producer surplus decreases and social welfare increases

b.consumer surplus decreases and social welfare decreases

c.consumer surplus increases and social welfare decreases

d.producer surplus increases and social welfare increases

7) Which of the following correctly describes the welfare effects from a price ceiling?

Select one:

a.consumer surplus increases and social welfare increases

b.consumer surplus decreases and social welfare increases

c.producer surplus increases and social welfare decreases

d.producer surplus decreases and social welfare decreases

8) Monetary policy in the U.S. is conducted by

Select one:

a.the department of commerce

b.congress

c.the president

d.the federal reserve bank

9) Fiscal policy in the U.S. is conducted by

Select one:

a.congress

b.the president

c.the department of commerce

d.the federal reserve bank

10) Which of the following are characteristics of a public good?

Select one:

a.rival and nonexcludable

b.nonrival and excludable

c.rival and excludable

d.nonrival and nonexcludable