1: What is a public good?(1 point)
A: A public good is a product or service that one consumer cannot prevent another consumer from using, and is not accessible without payment.
B: A public good is a product or service that one consumer can prevent another consumer from using, and is accessible without payment.
C: A public good is a product or service that one consumer can prevent another consumer from using, and is not accessible without payment.
D: A public good is a product or service that one consumer cannot prevent another consumer from using, and is accessible without payment.
2: What is a negative externality?(1 point)
A: Negative externalities occur when the social cost of a good or service is higher than the private cost.
B: Negative externalities are goods or services that are subject to the free-rider problem.
C: Negative externalities are goods or services that one consumer can limit another consumer's use of.
D: Negative externalities occur when the social cost of a good or service is lower than the private cost.
3: What is a positive externality?(1 point)
A: Positive externalities occur when a service is available without cost.
B: Positive externalities occur when there is both a social benefit and private benefit from a good or service.
C: Positive externalities occur whenever there is a private benefit to a good or service.
D: Positive externalities occur whenever there is a social benefit to a good or service.
4: Summarize whether the Laffer curve is used to justify implementing expansionary fiscal policies for consumers.(1 point)
A: The Laffer curve is used for monetarist theory because they believe in increasing the money supply when the economy slows and reducing the money supply when the economy is strong.
B: The Laffer curve is used for classical theory economists because they believe reducing corporate tax rates and providing subsidies helps the economy.
C: The Laffer curve is used by demand-side economists, who argue that expansionary fiscal policies should be used to benefit consumers.
D: The Laffer curve is used for supply-side economic theory, which means to use expansionary fiscal policies for producers and not consumers.
5: Which economic theory views that each individual in society make choices on various outcomes?(1 point)
A: Demand-side
B: Austrian
C: Monetarist
D: Supply-side
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