Question 1 1 pts Private markets fail to account for externalit'ies because 0 the government can easily correct any adverse effect on the market that externallties may cause. 0 decision makers in the market fail to take account of the external effects of their behavior. 0 externalities don't occur in private markets. 0 sellers include costs associated with externalities in the price of their product. Question 2 1 pts Natural monopolies differ from other forms of monopoly because they 0 are not regulated by government. 0 generally don't make a prot. 0 are not subject to barriers to entry. 0 are generally not worried about compeon eroding their monopoly position in the market. Question 3 1 pts In the case that you are conducting a costbenet analysis on a project where you are purchasing inputs from a monopoly. the budgetary outlays are likely to be _______________ the true social cost of the input. 0 greater than 0 less than 0 equal to Question 4 1 pts Suppose that you are conducting a cost-benet analysis in a low income country that has considerable rural to urban migration. In this situation, what is the appropriate wage at which to value the time of unskilled workers? 0 the rural wage. O the urban wage. O something between the rural wage and the urban wage. D Question 5 0 pts Please indicate which of the following list of topics you are not comfortable with: O Proposing a value for employing unemployed labor in a CBA. O Why measuring surplus changes in secondary markets can sometimes be double counting. O How elasticity of supply affects surplus measurement. D Question 6 1 pts Consider the situation of a CBA of a street-widening project (presented at the end of the chapter). In this particular case, the effect of street- widening on the property values of filling stations should be ignored because O the property market is a monopoly. O the property market is a secondary market. O the property market does not generate externalities.D Question 7 1 pts In the street-widening example at the end of the chapter, which effects should be taken into account? O Increased profits at filling stations. O A greater number of traffic fines. O Cracked walls in houses. O the shifting of bus drivers to taxi drivers, who earn a similar wage