【導讀】A.B.C.D.Pricewill:. thelowerprice.Firmswill:

　　

【正文】 B. In both sectors, collective decisions are made the same. C. Ine and power are equally distributed in the two sectors. D. Scarcity imposes the aggregate consumption link in both sectors. D Aggregate consumption equals aggregate payment in both the market and public sectors. Because someone must pay for everything provided by the government, scarcity imposes the aggregate consumption payment link in both sectors. Question ID: 24827 Which of the following is NOT a difference between market and collective actions? A. The link between the size of the payment and the amount of consumption is different in the two sectors. 18 B. Aggregate consumption does not equal aggregate payment in the two sectors. C. Choices are made differently in the two sectors. D. Ine and power are distributed differently in the two sectors. B Aggregate consumption equals aggregate payment in both sectors. All of the other items are correct differences between the two sectors. Question ID: 24834 Market and government actions are best defined by which of the following characteristics? A. Choices create winners and losers in both sectors. B. Competitive behavior is present in both sectors. C. Ine and power are distributed similarly in both sectors. D. The size of the payment is linked to the amount of consumption in both sectors. B The similarities between market and government actions are: 1) petitive behavior is present in both sectors and 2) aggregate consumption equals aggregate payment in both sectors. Differences include the fact that there is no direct link between the size of payment and the amount of consumption with government. Also, ine and power are distributed differently, and while the private sector makes decisions based on mutual gain, the majority makes decisions in the public sector which can result in clear winners and losers. Question ID: 24830 In markets that lack petition, governments will act to maintain petition, most likely through: A. consumer protection legislation. 19 B. production of public goods and services. C. externality legislation. D. antitrust legislation. D In an attempt to correct the shorting of the market, governments will most likely create antitrust legislation to protect new entrants in markets that lack petition. Public goods, externalities, and information related to consumer safety are all issues related to the failure of the market pricing system. However, these are not actions the government would take to increase the level of petition. Question ID: 12713 What is the expected result of government imposed price ceilings and price floors on products? A. Price Ceilings Price Floors Surpluses Shortages B. Price Ceilings Price Floors Shortages Shortages C. Price Ceilings Price Floors Shortages Surpluses D. Price Ceilings Price Floors Surpluses Surpluses C Price ceilings prevent prices from rising to their equilibrium levels. Therefore, producers elect not to produce as many units. This results in shortages. Price floors prevent prices from declining to their equilibrium levels. Therefore, consumers will not demand as many units as they would otherwise. Surpluses result. 20 Question ID: 24831 To ensure that the costs of negative externalities are born by those creating the costs, governments can act to: A. increase antitrust legislation to maintain petition. B. shift the producers supply curve to the left, by increasing supplier tax benefits. C. increase the taxes paid by its citizens to help cover costs resulting from negative externalities. D. make and enforce rules about pollution and other negative externalities. D Examples of negative externalities are pollution that is created in the production of a manufactured good or the operation of automobiles and trucks. To ensure the costs of these externalities are born by those creating the costs, governments can act to make and enforce rules about pollution. Question ID: 12711 Which of the following is a role of government in attempting to correct the shortings of the invisible hand? A. Requiring that cleanair standards be met by polluting firms. B. Controlling the money supply in a manner that provides a stable financial environment. C. Provide national defense services for the protection of a country39。s citizens. D. Enforce laws to control and reduce stealing and theft by people in stores and shops, which result in higher prices for consumers. A Governments need to intervene to enforce environmental laws that control negative externalities, which cannot be eliminated by the invisible hand. While governments should control the money supply in a manner that stabilizes the economy, this is not done in an attempt to correct the shortings of the invisible hand. 21 Question ID: 12707 Which of the following is generally NOT recognized as legitimate functions of government? A. Enforcing laws and providing roads and infrastructure. B. Providing stable economic and moary environment. C. Taxing and lawmaking function. D. Protective function and productive function. C The two government functions that are generally recognized as legitimate are the protective function and the productive function. The protective function includes a framework for security and order while the productive function include things like maintaining a stable moary and financial environment. : Demand and Consumer Choice, including addendum Consumer Choice and Indifference Curves Question ID: 12715 If you are willing to pay $18 for a shirt but you had to pay $20 for the shirt, the $2 difference is: A. your consumer surplus. B. your consumer deficit. C. the producer39。s surplus. D. the producer39。s deficit. B If you are willi