Which of the following describes the effect that would occur on pencils if the government implemented a per unit subsidy on pencils?

The price of pencils would increase.

The output supplied in a market would increase.

The output supplied in a market would decrease.

A decrease in the number of suppliers of a product.

The opportunity cost of producing pencils would increase.

One way that externalities can be eliminated is to

increase competition

increase transaction costs

ensure perfect information

properly define property rights

relax enforcement of property rights

Which of the following events correctly describes the outcome in a competitive market?

An increase in demand, ceteris paribus, causes a decrease in equilibrium price and quantity.

An increase in supply, ceteris paribus, causes a decrease in equilibrium price and an increase in equilibrium quantity.

A decrease in demand, ceteris paribus, causes an increase in equilibrium price and quantity.

An increase in supply, ceteris paribus, causes an increase in equilibrium price and a decrease in equilibrium quantity.

A decrease in demand, ceteris paribus, causes an increase in equilibrium price and a decrease in equilibrium quantity.

The residents in the countryside go fishing at will in the only river that flows through their town. What type of good best describes this river?

Public good

Private good

Survival good

Artificially scarce good

Common pool resource