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Free CIMAPRA17-BA1-1 Exam Braindumps (page: 48)

Page 48 of 118
PDF with 468 Questions

All of the following are examples of externalities except which one?

  1. Pollution resulting from a production process
  2. Firms training workers who then move to other employers
  3. Some consumers being unable to afford goods because prices have been driven up by the demand from other consumers
  4. Road congestion caused by rush hour traffic on the roads

Answer(s): C



A train company acknowledges that externalities may reduce the welfare of its customers when it provides

  1. Restaurant cars in its trains
  2. Smoking and non-smoking carriages
  3. Reserved seats for disabled passengers
  4. Discounted prices for season-ticket holders

Answer(s): C



If a manufacturing firm contributes to global warming as a byproduct of its production process, this is an example of

  1. A merit good
  2. An external social cost
  3. A diseconomy of scale
  4. A public good

Answer(s): B



Which of the following is most likely to increase rather than to reduce market imperfections?

  1. An increase in the number of buyers and sellers in a market
  2. A lowering of entry barriers separating markets
  3. Informative advertising giving way to persuasive advertising
  4. Employers making greater use of the Internet to advertise job vacancies

Answer(s): C



Page 48 of 118



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