* not completed

. In a buffer stock scheme the government buys up excess output when there is a:

shortage correct incorrect

surplus correct incorrect

equilibrium correct incorrect

sale correct incorrect

* not completed

. A negative production externality means:

Social costs are less than private costs correct incorrect

Social costs equal social benefits correct incorrect

Social costs are more than private costs correct incorrect

Social costs equal private costs correct incorrect

* not completed

. A negative production externality leads to:

Under-production compared to the socially optimal level correct incorrect

The socially optimal level correct incorrect

Over-production compared to the socially optimal level correct incorrect

Under-production compared to the profit maximising level correct incorrect

* not completed

. Social cost equals:

Private cost plus external cost correct incorrect

Private cost minus external cost correct incorrect

Private cost plus external benefit correct incorrect

Private benefit plus external cost correct incorrect

* not completed

. A positive externality occurs when:

The social benefit equals the private benefit correct incorrect

The social benefit is less than the private benefit correct incorrect

The social benefit is more than the private benefit correct incorrect

The social benefit equals the social cost correct incorrect

* not completed

. A positive externality means that in the free market there is:

Over-production relative to the socially optimal level of output correct incorrect

Under- production relative to the socially optimal level of output correct incorrect

The socially optimal level of output correct incorrect

Over production relative to the maximum output correct incorrect

* not completed

. A welfare loss occurs when:

Social costs are less than social benefits correct incorrect

Social costs are equal to the social benefits correct incorrect

Social costs are more than social benefits correct incorrect

Social costs are less than private benefits correct incorrect

* not completed

. A welfare gain occurs when:

Social costs are less than social benefits correct incorrect

Social costs are equal to the social benefits correct incorrect

Social costs are more than social benefits correct incorrect

Social costs are less than private benefits correct incorrect

* not completed

. Public goods are:

Excludable correct incorrect

Any products provided by the government correct incorrect

Over provided in the free market correct incorrect

Non-diminishable correct incorrect

* not completed

. A government is likely to:

Tax negative externalities correct incorrect

Subsidise negative externalities correct incorrect

Tax positive externalities correct incorrect

Tax public goods correct incorrect

* not completed

. A public good is:

Non-diminishable and excludable correct incorrect

Diminishable and non-excludable correct incorrect

Non-diminishable and non-excludable correct incorrect

Diminishable and excludable correct incorrect

* not completed

. The free market:

Will provide public goods correct incorrect

Will create income equality correct incorrect

Will encourage innovation correct incorrect

Will under-produce positive externalities correct incorrect

* not completed

. A monopoly occurs in a market when there is:

A single seller correct incorrect

A single buyer correct incorrect

A single price correct incorrect

A single output correct incorrect

* not completed

. Cigarettes are an example of:

Public good correct incorrect

Negative externality correct incorrect

Positive externality correct incorrect

Nationalisation correct incorrect

* not completed

. Education is an example of:

Public good correct incorrect

Negative externality correct incorrect

Positive externality correct incorrect

Nationalisation correct incorrect