I'm not sure whether I am correct. My answer is 1c 2d 3a 4c.

1The existence of a secondary market for music festival tickets implies that...

Select one:

a.festival organisers should have set a lower ticket price

b.the government should have enforced a quota on the number of tickets which could be sold by the organisers

c.the initial allocation of tickets was inefficient

d.the goal of festival organisers was to achieve Pareto efficiency with their allocation of the tickets

2Missing markets may exist because...

Select one:

a.There is symmetric information between buyers and sellers

b.Consumers do not demand certain products, so there is no need for a market to exist

c.Negative production externalities force producers to abandon production

d.Information which can not be verified is involved

3A Pigouvian tax works by...

Select one:

a.Forcing the producer to pay a tax per unit of production equal to the difference between the marginal social cost and marginal private cost at the socially optimal level of production

b.Increasing the price consumers pay, forcing them to consume an amount equal to the socially optimal level

c.Forcing producers to pay a tax per unit of production equal to the difference between marginal social cost and marginal private cost at the producer's profit maximising level of production

d.Forcing the producers to pay compensation equal to the external cost imposed upon society

4) All else equal, if the borrowing rate of interest decreases, the feasible frontier for the borrower willand the amount which can be consumed in the present

Select one:

a.pivot outward, will decrease

b.pivot outward, will increase

c.pivot inward, will decrease

d.pivot inward, will increase