1. A good that possesses positive externality in a free-market economy will likely: A.Produced at the equilibrium output level. B. Underproduced. C. Produced beyond the equilibrium level D. None of the above.
MCQ
1. A good that possesses positive externality in a free-market economy will likely:
A.Produced at the equilibrium output level.
B. Underproduced.
C. Produced beyond the equilibrium level
D. None of the above.
2. A recent severe drought likely "destroys most of the rice cultivation." This situation would likely cause the:
A. demand curve to shift right and supply curve to shift left.
B. demand curve to shift left and the supply curve to shift right.
C. price of rice to go up and quantity purchased to go down.
D. Price and quantity movements are uncertain.
3. Under-allocation of resources occurs at the output where:
A. Marginal benefit is greater than marginal cost.
B. Marginal cost is greater than
4. Pandemic has caused the company’s medical insurance to go up. This will cause the firm’s:
A. fixed cost to increase.
B. variable cost to increase.
C. sunk cost to increase.
D. marginal cost to go up.
C. Marginal revenue equals to marginal cost.
D.
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