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Question 11 pts

What is the difference between positive economics and normative economics?

Group of answer choices

Positive economics deals with dynamic systems, while normative economics focuses on static systems.

Normative economics deals with how the world actually works, whereas positive economics focuses on what people ought to do.

Positive economics requires making value judgments, while normative economics relies solely on factual statements.

Normative economics applies in cases that are characterized by typical or normal behaviors and dynamics, while positive economics applies in cases with unusually rapid technological progress.

Normative economics focuses on what people ought to do, whereas positive economics deals with how the world actually works.

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Question 21 pts

Which of the following are true statements about public goods?

Group of answer choices

To find the aggregate marginal willingness to pay (MWTP) for the good you would add together the individual MWTP corresponding to given ``output'' levels

The good is available in the same quantities to everyone

Payment of a fee to a public agency provides access to the good

The total amount consumed is the sum of the amounts consumed by each individual

Public goods are those paid for by taxes and provided and maintained by the government

Overuse by some diminishes the amount available to others

They are rival and non-excludable

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Question 31 pts

Angela is willing to pay $75 now for an item to be delivered in exactly 3 years time. The most she would be willing to pay for the item today is $100. What is Angela's discount rate?

Group of answer choices

7.5% per year

25% per year

15% per year

10% per year

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Question 41 pts

Aubrey consumes 5 units of a certain good. Aubrey would buy one additional unit only if the price per unit were $10 or less. What concept is being illustrated here?

Group of answer choices

Diminishing marginal utility

Marginal willingness to pay

Discounting

Aggregate willingness to pay

Intrinsic value

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Question 51 pts

A local firm makes and sells handcrafted equestrian riding boots. Some of the residual chemicals from the leather tanning process are discharged into a river used for the town's drinking water supply. The social marginal cost curve for the riding boots is ___________________ the firm's riding boot supply curve.

Group of answer choices

lower than

higher than

completely unrelated to

equal to

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Question 61 pts

Last week you paid $20 for a ticket to the opening game of the Cowboy's upcoming football season. Tickets are now sold out, and your acquaintance, Mary, asks to buy your ticket. The lowest price at which you would be willing to sell your ticket to Mary is $50, but she is willing to pay no more than $40. If attending the game and selling your ticket to Mary are your only two options, what is your opportunity cost of going to the game?

Group of answer choices

$50

$20

$40

$30

$0

$10

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Question 71 pts

Which one or more of the following statements is consistent with the economic definition of sustainability for a nonrenewable natural resource?

Group of answer choices

Non-renewable resources cannot be used sustainably because they eventually will run out; only renewable resources can be used sustainably.

Sustainability requires that the rate of extraction must be less than the discount rate in all periods.

Use of a non-renewable resource can be sustainable if investments in other forms of productive capital are made in an amount equal to or exceeding the user cost.

Extraction can be sustainable only if it is matched or exceeded by the rate of discoveries of new deposits.

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Question 81 pts

Which of the following are typically associated with open-access resources?

Group of answer choices

rivalry

over-use relative to the economically efficient level

resource discounting inflation

Under-supply relative to the economically efficient level due to free-riding

Public goods

Private goods

excludability

resource rent dissipation

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Question 91 pts

If the government charges a tax to producers in the amount of $x per unit of output, this has the effect of...

Group of answer choices

Decreasing the market quantity

Shifting the marginal external cost curve down

Shifting the supply curve up

Shifting the marginal external cost curve up

Increasing the market quantity

Decreasing the market price

Shifting the demand curve up

Shifting the supply curve down

Increasing the market price

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Question 101 pts

The table below shows the consumer surplus per visitor that would be generated at different levels of attendance at a local public park that currently charges no fee for entry. Consumer surplus per visitor declines with the number of visitors because of crowding and congestion in the park.

Number of visitors	Consumer surplus per visitor
200	50
300	40
400	20
500	0
600	-10
700	-15
800	-20

What entry fee would need to be charged to limit the number of visitors to the level that maximizes total surplus?

Group of answer choices

$60

$40

$20

$50

$0

$30

$10

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Question 111 pts

A project has been proposed to build an overlook area off the Snowy Range Scenic Byway. To finance the construction of the overlook, a two-tier tax will be assessed on residents of Laramie and several nearby towns. Households below the median income will pay 0.1% of their income in taxes, and those above the median income will pay 0.2%. Differences in households' willingness-to-pay for the overlook have been found to be unrelated to their incomes.

Based on the information provided, which one or more of the following conclusions can we draw about the distribution of the benefits, costs, and net benefits of the proposal relative to household incomes?

Group of answer choices

Net benefits are distributed regressively

Costs are distributed regressively

Benefits are distributed progressively

Net benefits are distributed progressively

Costs are distributed proportionally

Net benefits are distributed proportionally

Benefits are distributed regressively

Benefits are distributed proportionally

Costs are distributed progressively

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Question 121 pts

Which of the following are reasons why voluntary contributions to The Nature Conservancy probably would not correspond to the total value that people place on the wildlife habitat protected by that organization?

Group of answer choices

Travel costs may be prohibitive for some contributors.

Protection of species habitat is a public good.

The protected habitat also may provide consumptive or non-consumptive use values.

The marginal private cost of protecting the habitat will be greater than the marginal social benefits.

Existence values cannot be measured using a contingent valuation approach.

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Question 131 pts

Use the table below to answer the questions that follow.

Time period	Project A benefit	Project A cost	Project B benefit	Project B cost
0	10	25	40	120
1	25	25	40	0
2	40	25	40	0
3	50	25	40	0

Recall that a project's internal rate of return (IRR) is the discount rate for which the project's present value of net benefits equals zero.

(a) The internal rate of return for Project A is                            [ Select ]                       ["equal to", "greater than", "less than"]         0.3 per period.

(b) The internal rate of return for Project B is                            [ Select ]                       ["equal to", "greater than", "less than"]         0.3 per period.

(c) If the discount rate is 0.1 per period and only one project an be adopted, an economist would recommend                            [ Select ]                       ["Project B", "Project A"]         .

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Question 141 pts

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Answer 1

Question 1

Here the correct option is: Normative economics focuses on what people ought to do, whereas positive economics deals with how the world actually works.

Because, based on facts whereas normative economics is not based on facts.

Question 2

Here the correct option may be: Public goods are those paid for by taxes and provided and maintained by the government.

Because, ‘public good refers to a commodity or service that is made available to all members of a society and these services are administered by governments and paid for collectively through taxation’.

Note: Here the option -The good is available in the same quantities to everyone, has also a chance. But from my point of view the correct option is the above mentioned one.