Question 7
In Santa Monica, California, it was reported that a “finder’sfeeâ€â€”an up-front payment of up to $5,000—was being required ofprospective tenants seeking to rent special apartments. What isthis an example of?
the black market
a price floor
price gouging
a government price ceiling
Question 8
Mesa Petroleum Company built a small park in front of itscorporate office. This is an example of __________.
imposing external costs on its shareholders
providing a pure public good
providing external benefits to the community
assuming city responsibilities
Question 9
What is the most frequently cited example of an externality?
service charges
public protest
pollution
sales taxes
Question 10
A negative externality exists when __________.
all costs are taken into account in the demand curve
all costs are taken into account in the supply curve
the market demand curve is not the true demand curve
the marginal social costs are not taken into account in thesupply cur
