ECON2000 3rd Exam Review

What are taxes in microeconomics?

• Voluntary contributions to the government

• Compulsory financial charges imposed by a government

• Financial assistance provided by the government

• Costs incurred by third parties

What is the purpose of subsidies?

• To generate revenue for public expenditures

• To encourage production, consumption, or economic activities

• To impose costs on third parties

• To discourage production and consumption

Does "Streetlights" involve a positive, negative, or no externality?

• Positive externality

• Negative externality

• No externality

Is "Vaccination" excludable or non-excludable?

• Excludable

• Non-excludable

Is "Vaccination" rivalrous or non-rivalrous?

• Rivalrous

• Non-rivalrous

Does "Vaccination" involve a positive, negative, or no externality?

• Positive externality

• Negative externality

• No externality

What type of good is "Bottled water"?

• Private good

• Public good

• Common resource

• Club good

Does "Bottled water" involve a positive, negative, or no externality?

• Positive externality

• Negative externality

• No externality

Is "Fire department" excludable or non-excludable?

• Excludable

• Non-excludable

Is "Fire department" rivalrous or non-rivalrous?

• Rivalrous

• Non-rivalrous