Match the type of good with its unique defining characteristics and associated economic challenge.

Which of the following factors contribute to the private sector’s tendency to underinvest in research and development (R&D) relative to the needs of society?

Which of the following are the possible ways discussed in this course to address a negative externality like pollution?

What are three ways to address the tragedy of the commons?

A group of U.S. firms that secretly coordinate to reduce industry output and keep prices high, without signing a formal agreement, is engaging in:

A key benefit that monopolistic competition offers to society, which is generally absent in perfect competition, is:

If a monopolistically competitive firm is making positive economic profits in the short run, the process of long-run adjustment ensures that:

Match the characteristic to the correct market structure.

Exam InstructionsThis is an open-notes (print resources only!) examination, however, you may not communicate with anyone or any other resource (including, but not limited to, electronic or web resources) in any way in completing this exam.This restriction prohibits discussion and/or sharing with or from others – electronic or otherwise — of notes, insights, or other materials.You will have 90 minutes to complete the exam.There are 25 multiple choice questions below.Each question is worth 4 points.Remember: choose the best answer for each question, assume only the facts provided, and answer only what is asked.Good Luck!!  

When it comes to choosing among alternative courses of action in a negotiation, most rational people would rather accept a counterparts clearly stated fixed sum benefit rather than a potentially larger but uncertain benefit, where the uncertain option has the same expected value as the fixed sum option.