Q1) When too many people try to use a resource, it becomes unusable for everyone. There is no cost to use the resource. This type of good is a______?

1) Common resource

2) Artificially scarce resource

3) Private good

4) None of the above

Q2) The government gives a lump-sum subsidy to a monopoly. Describe the effect on profit, quantity produced, and deadweight loss.

1) Profits increase, quantity and deadweight loss remain the same

2) Profits decrease, quantity and deadweight loss remain the same

3) Profits increase, quantity decreases, and deadweight loss increases

4) Profits decrease, quantity increases, and deadweight loss decreases

5) Profits increase, quantity increases, and deadweight loss increases