Microeconomics Ch 12-15
ECO 213 MICROECONOMICS (100 points) NAME:
Chapters 12-15: Homework
DUE: April 16, 2012
1. A regulated natural monopoly is more likely to spend more money on employee healthcare under which of the following types of regulation?
A. Price regulation.
B. Profit regulation.
C. Output regulation.
D. Social regulation.
2. Hiring over 260,000 U.S. federal workers to oversee and operate regulatory agencies involves:
A. Zero costs since the market outcomes will be improved.
B. Government failure in every case.
C. Forgoing output that could be produced if the workers were employed elsewhere.
D. Some opportunity costs only if market outcomes do not improve.
3. When the regulatory process itself stops a new company from forming, society experiences:
A. Compliance costs of regulation.
B. Administrative costs of regulation.
C. Budgetary costs of regulation.
D. Efficiency costs of regulation.
4. When there is market failure:
A. Government intervention is always beneficial.
B. A laissez-faire approach is the best policy.
C. Government intervention is beneficial only in the case of natural monopolies.
D. Government intervention is beneficial only when the benefit of intervention exceeds the cost.
5. Which of the following is a form of water pollution?
A. Slaughter waste.
B. Thermal pollution.
C. Smog.
D. Solid-waste pollution.
6. A five-cent container deposit on bottles:
A. Decreases the incentive to recycle.
B. Increases the incentive to recycle.
C. Makes it more profitable for firm's to use these containers.
D. Encourages pollution.
7. Firm A finds it very expensive to reduce its sulfur dioxide emissions, while Firm B finds it very cheap to reduce it sulfur dioxide emissions. If a program of tradable pollution permits was enacted, we would most likely see:
A. Both firms decrease their sulfur dioxide emissions by the same amount.
B. Both firms increase their sulfur dioxide emissions by the same amount.
C. Firm A
Chapters 12-15: Homework
DUE: April 16, 2012
1. A regulated natural monopoly is more likely to spend more money on employee healthcare under which of the following types of regulation?
A. Price regulation.
B. Profit regulation.
C. Output regulation.
D. Social regulation.
2. Hiring over 260,000 U.S. federal workers to oversee and operate regulatory agencies involves:
A. Zero costs since the market outcomes will be improved.
B. Government failure in every case.
C. Forgoing output that could be produced if the workers were employed elsewhere.
D. Some opportunity costs only if market outcomes do not improve.
3. When the regulatory process itself stops a new company from forming, society experiences:
A. Compliance costs of regulation.
B. Administrative costs of regulation.
C. Budgetary costs of regulation.
D. Efficiency costs of regulation.
4. When there is market failure:
A. Government intervention is always beneficial.
B. A laissez-faire approach is the best policy.
C. Government intervention is beneficial only in the case of natural monopolies.
D. Government intervention is beneficial only when the benefit of intervention exceeds the cost.
5. Which of the following is a form of water pollution?
A. Slaughter waste.
B. Thermal pollution.
C. Smog.
D. Solid-waste pollution.
6. A five-cent container deposit on bottles:
A. Decreases the incentive to recycle.
B. Increases the incentive to recycle.
C. Makes it more profitable for firm's to use these containers.
D. Encourages pollution.
7. Firm A finds it very expensive to reduce its sulfur dioxide emissions, while Firm B finds it very cheap to reduce it sulfur dioxide emissions. If a program of tradable pollution permits was enacted, we would most likely see:
A. Both firms decrease their sulfur dioxide emissions by the same amount.
B. Both firms increase their sulfur dioxide emissions by the same amount.
C. Firm A