In the wine industry 1. the price of a cheap wine and expensive wine are not that different 2. even experts have a difficult time telling the difference between cheap and expensive wine 3. it is very easy to tell different types apart 4. there are only a few wines that control the market

A free-rider problem exists for any good that is not   a private good free excludable rival in consumption

Which of the following is a characteristic of a competitive market?   Many firms have market power because they own patents Buyers and sellers are price takers . Firms sell differentiated products There are many buyers but few sellers

Sequence 2 – This question is worth 16 points.

In which type of market is advertising the most important? Monopolistic competition oligopoly       monopoly        perfect competition

If education produces positive externalities, we would expect   the government to subsidize education people to realize the benefits, which would increase the demand for education colleges to relax admission requirement the government to tax education

Highway engineers want to improve a dangerous stretch of highway. They expect that it will reduce the risk of someone dying in an accident from 5.3 percent to 2.1 percent over the life of the highway. If a human life is worth $10 million, then the project is worth doing as long as it does not cost more than 1. $320,000. 2. $210,000. 3. $450,000. 4. $2.1 million.

Under which of the following scenarios would a park be considered a common resource?   Visitors to the park must pay an admittance fee and frequently all of the picnic tables are in use Visitors can enter the park free of charge and there are always plenty of empty picnic tables Visitors can enter the park free of charge, but frequently all of the picnic tables are in use Visitors to the park must pay an admittance fee, but there are always plenty of empty picnic tables

  In this market, equilibrium price and quantity, respectively, are $10 and 30 $10 and 50 $10 and 70 $4 and 50

According to recent data, in the U.S. the top 1% have ______% of income and _____% of wealth.   1. 10, 50   2. 30, 80   3. 50, 25   4. 20, 40