Previous Page Next Page Page 13 of 20 Question 13 (1 point) Suppose the government makes measles vaccinations mandatory. Which of the following best describes the intent of this policy? The government is motivated by concerns that cannot be adequately categorised as belonging to either efficiency or equity. O The government is motivated by a concern about equity. Everyone should be treated equally, therefore everyone should be vaccinated. The government is motivated by a concern about efficiency. The market failure is caused by market power. O The government is motivated by a concern about efficiency. The market failure is caused by an externality. Previous Page Next Page Page 13 of 20Previous Page Next Page Page 10 of 20 Question 10 (1 point) Which of the following is NOT true? A producer would never choose to produce less than before willingly. Rich countries can benefit from trading with poorer countries even if there is a substantial difference in productivity between them. O Producers of a good can be worse off when a technological innovation makes them more efficient. O When incomes rise consumers demand less of some goods. Next Page Page 10 of 20 Previous Page1: Previous Page Next Page Page 12 of 20 Question 12 (1 point) "Germany, as a rich, developed country, should ensure that everyone has gas to heat 2: their homes this winter." The above statement is: O Positive, and is associated with the concept of equity. Normative, and is associated with the concept of equity. Normative, and is associated with the concept of efficiency. )Positive, and is associated with the concept of efficiency. Page 12 of 20 Previous Page Next PageQuestion 9 (1 point) "A 5 km/h reduction in speed limits reduces vehicle collisions by 1.9%." The above statement is: O Positive, and is associated with the concept of equity. O Normative, and is associated with the concept of efficiency. O Normative, and is associated with the concept of equity. O Positive, and is associated with the concept of efficiency. Previous Page Next Page PagePrevious Page Next Page Page 11 of 20 Question 11 (1 point) Kate and Tom are the only consumers in Smallville's ice cream market. When the price of an ice cream cone is $4, Kate's quantity demanded is 3 cones, while Tom's demand is 2 cones. When the price of an ice cream cone is $6, Kate's quantity demanded is 2 cones, while Tom's quantity demanded is 1 cone. What is the price elasticity of demand for Smallville's ice cream market when the price is between $4 and $6? (Use the midpoint method). 0.75 1 1.25 1.5 Previous Page Next Page Page 11 of 20