[Solved] What Are External Costs

Which of the following is true concerning a public good? A)It is both non-rival and non-excludable. B)It is non-rival but not necessarily non-excludable. C)It is non-excludable but not necessarily non-rival. D)It is neither non-rival nor non-excludable.

What is a public good? A)A good provided by the government which could be provided by private firms. B)A good provided by private firms which could be provided by the government. C)A good whose benefits are not affected by the number of users and from which no one can be excluded. D)A good which is both excludable and difficult to produce at a profit.

What is a private good? A)A good whose benefits can be denied to non-buyers and whose consumption by one person reduces the amount available to others. B)A good provided by the government which could be provided by private firms. C)A good which could not be produced at a profit by the government. D)A good which could be provided by the government but only at a loss.

What does the term non-excludable mean? A)It means that prospective buyers cannot be prevented from buying a particular product. B)The impossibility of preventing non-buyers from enjoying the benefits of a product. C)It refers to a market where price discrimination cannot be practiced. D)It means that one person's consumption doesn't reduce the amount available for others.

What does the term non-rival mean? A)It refers to a market in which there is no competition. B)The impossibility of preventing non-buyers from enjoying the benefits of a product. C)It refers to a market where price discrimination is practiced. D)It means that one person's consumption doesn't reduce the amount available for others.

What are external benefits? A)The benefits that are enjoyed by people other than the producers or consumers of a product. B)The benefits that are enjoyed by outside workers. C)The benefits that are obtained from importing products from abroad. D)The benefits that a firm obtains from opening up plants abroad.

What are externalities? A)The extra cost involved in the packaging and marketing of a product. B)The additional costs of a product which cannot be recouped from the government. C)The extra cost to the consumers of a product in terms of maintenance and insurance. D)The benefits or costs of a product experienced by people who neither consume nor produce that product.

All of the following,except one,are examples of quasi-public goods in Canada.Which is the exception? A)Military defence. B)Postal services. C)Individual health care. D)Education.

All of the following,except one,are valid reasons why many governments provide quasi-public goods? A)Because collecting fees from users might be too costly. B)Because market competition is sometimes inefficient in the provision of certain services. C)Because quasi-public goods produce extensive externalities. D)Because private firms would not be able to provide those services.

Which of the following statements is true regarding marginal social costs? A)They include external but not internal costs of production. B)They include internal but not external costs of production. C)They include both external and internal costs of production. D)They measure the difference between social benefits and social costs.