A tax imposed on imports is called:

A tariff

A quota

A comparative advantage

An excise tax

Question 2

This result proposes that private parties (consumers and producers) can solve the problem of externalities on their own.

A tariff

Scarce Theorem

Social Optimum Theorem

Coase Theorem

Question 3

Two important characteristics of a public good are:

Non-excludable and non-rival in consumption

Excludable but non-rival in consumption

Non-excludable but rival in consumption

excludable and rival in consumption

Question 4

The Tragedy of The Commons is a parable that illustrates:

resources commonly owned are used more than is desirable

resources that are privately owned are used efficiently

resources that are owned by the government are more efficiently used

resources that are privately owned are used more than desirable

Question 5

The impact of one person's actions on the well-being of a bystander is called a(n):

Supply

Market

Externality

Property Rights

Question 6

What criterion could you use to determine whether a small country named "Isoland" is a net importer of oil?

The world price is below the domestic price in Isoland

The world price is above the domestic price in Isoland

The world price equals the domestic price in Isoland

THe world price fluctuates above and below the domestic price in Isoland

Question 7

For a net importer country, a tax on imports causes:

more imports and gains in total surplus

more imports and loss of total surplus

less imports and loss of total surplus

less imports and gains in total surplus

Question 8

If you as an economic adviser recommend the government of Isoland (a small country) to allow free trade and steel to be imported from other countries, the steel industry at Isoland most likely will oppose your decision arguing:

trade destroys domestic jobs

steel is used to produce guns and tanks, therefore it is a threat to national security to allow imports from other countries

other countries that export to us are subsidizing their own industry and Isoland does not

any of the above

Question 9

Which one below applies to an industry that produces a negative externality?

the social cost and private cost are the same

the social cost exceeds the private cost

the private cost exceeds the social cost

the social cost is unrelated to the private cost

Question 10

What explains that marginal cost increases as production of a product increases?

inreasing cost law

decreasing average cost property

diminishing marginal product property

law of increasing marginals