1-10. ( 1 point each) Identify the type of traditional market failure.

1._____ excessive charges by Great Lakes Water Authority for water delivered to suburban customers

2._____ a patient who has the flu takes Tamiflu and feels better; his doctor, however, is uncertain whether it was the medication or whether he feels better because of the action of his immune system 3._____ potholes and cracked pavement on a driveway shared by ten homeowners

4._____ after the purchase of a used car, the owner learns after a month of driving and multiple repair shop visits that it is a "lemon"

5._____ a water bottling company in a small town in Michigan draws so much ground water that the local water table drops and local stream flows diminish

6._____ a metropolitan art museum, losing a government subsidy, starts imposing a sizable admission charge, but this leads to a sharp drop in attendance

7._____ customer dissatisfaction with DTE's poor service

8._____ a wealthy Catholic parish results in higher property values of houses in adjacent neighborhoods

9._____ litter, noise, loitering and the selling of illegal drugs outside party stores

10._____ a city council in a small town, due to citizen opposition to raising local property taxes, is unable to hire a full-time police officer

a. public goods--toll good

b. public goods--pure public good

c. public goods--open access resource

d. public goods--common property resource

e. natural monopoly--high prices

f. natural monopoly--X inefficiency

g. negative externality h. positive externality

i. information asymmetry--experience good

j. information asymmetry-- post-experience good