Question 15

The market failure referred to as incomplete markets is the failure of

a. some goods to be provided even though benefits would exceed costs.

b.all people to demand all goods.

c.some goods to be provided because their prices are too low.

d.some goods to be demanded because their competitive prices are too high.

Question 16

An impure public good is a good

a.that is not considered unanimously to serve the public interest.

b.that to some degree has a characteristic of a private good.

c.whose provision is inefficient because of free riders.

d.that is both publicly and privately provided.

Question 17

The Constitution forbids the federal government from levying

a.import taxes

b.uniform taxes

c.export taxes

d.capitation taxes

Question 18

Charging a toll on a crowded bridge can

a.interfere with competitive efficiency.

b.help to correct a negative externality

c.be a public good, since my paying the toll does not keep you from paying the toll as well.

d.be a positive externality, because people do not wait so long once there is a toll.

Question 19

The marginal rate of substitution is the slope of

a.an indifference curve

b.a budget line

c. a production possibilities curve

d.utility possibilities curve