Question 1

In a democracy,the median voter will tend to determine the quantities and types of public goods produced.

Accepted Answer

A) True 
 B)False

Question 2

List and explain some of the external benefits generated by education.

Accepted Answer

The workplace is improved and

Question 3

The median-voter theory suggests that different political parties will not adopt the same position as the median voter to distinguish from the competition.

Accepted Answer

A) True 
 B)False

Question 4

In a two-party democratic system,elected officials typically choose a view that is close to the median voter to ensure their reelection.

Accepted Answer

A) True 
 B)False

Question 5

When do we expect special-interest groups to form?

Accepted Answer

A) when the benefits are spread out over many and the costs are concentrated on a few citizens 
B) when the costs of a project are spread out among all taxpayers while the benefits are concentrated among smaller segments of the population 
C) when there is a great possibility that a vast number of citizens will become free-riders 
D) when the choices made by the government match the preferences of the median voter 
A) when the benefits are spread out over many and the costs are concentrated on a few citizens 
B) when the costs of a project are spread out among all taxpayers while the benefits are concentrated among smaller segments of the population 
C) when there is a great possibility that a vast number of citizens will become free-riders 
D) when the choices made by the government match the preferences of the median voter

Question 6

If education results in external benefits,the government could subsidize education to lead the market to an inefficient level of output.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following situations contains most of the characteristics of a private good:

Accepted Answer

A) free bread handed out by the government. 
B) an apartment in a public housing project. 
C) a hamburger. 
D) all of the above. 
A) free bread handed out by the government. 
B) an apartment in a public housing project. 
C) a hamburger. 
D) all of the above.

Question 8

A good is nonrival in consumption when it:

Accepted Answer

A) has either positive or negative external costs. 
B) is priced at its marginal cost. 
C) can be enjoyed by one person without that interfering with another's consumption. 
D) is nonexcludable. 
A) has either positive or negative external costs. 
B) is priced at its marginal cost. 
C) can be enjoyed by one person without that interfering with another's consumption. 
D) is nonexcludable.

Question 9

What is public choice economics?

Accepted Answer

Public choice econom

Question 10

According to the self-interest theory of government,limitations on taxes and spending accounts are:

Accepted Answer

A) inessential precautions against politicians who focus on selfish behavior. 
B) necessary safeguards against politicians who benefit from larger budgets. 
C) the way all citizens can reap rewards from small interest groups. 
D) the only way to balance the government's budget. 
A) inessential precautions against politicians who focus on selfish behavior. 
B) necessary safeguards against politicians who benefit from larger budgets. 
C) the way all citizens can reap rewards from small interest groups. 
D) the only way to balance the government's budget.

Question 11

Special interest groups never use propaganda to express their views to government officials.

Accepted Answer

A) True 
 B)False

Question 12

The free-rider problem is a problem intrinsic to public goods;the good or service is usually so costly that its provision generally does not depend on whether or not any single person pays.

Accepted Answer

A) True 
 B)False

Question 13

List the two characteristics that define a public good.

Accepted Answer

(1)Nonriva

Question 14

A clock tower is a private good if individuals pay for the tower to be built.

Accepted Answer

A) True 
 B)False

Question 15

If there are external benefits associated with education,then:

Accepted Answer

A) the social benefit exceeds the private benefit. 
B) the private benefit exceeds the social benefit. 
C) the social benefit equals the private benefit. 
D) None of the above are true. 
A) the social benefit exceeds the private benefit. 
B) the private benefit exceeds the social benefit. 
C) the social benefit equals the private benefit. 
D) None of the above are true.

Question 16

The government can offer a subsidy that encourages people to seek more education.

Accepted Answer

A) True 
 B)False

Question 17

All goods that have social value will be profitable for firms in the private sector to produce.

Accepted Answer

A) True 
 B)False

In a democracy,the median voter will tend to determine the quantities and types of public goods produced.

List and explain some of the external benefits generated by education.

The median-voter theory suggests that different political parties will not adopt the same position as the median voter to distinguish from the competition.

In a two-party democratic system,elected officials typically choose a view that is close to the median voter to ensure their reelection.

When do we expect special-interest groups to form?

If education results in external benefits,the government could subsidize education to lead the market to an inefficient level of output.

Which of the following situations contains most of the characteristics of a private good:

A good is nonrival in consumption when it:

What is public choice economics?

According to the self-interest theory of government,limitations on taxes and spending accounts are:

Special interest groups never use propaganda to express their views to government officials.

The free-rider problem is a problem intrinsic to public goods;the good or service is usually so costly that its provision generally does not depend on whether or not any single person pays.

List the two characteristics that define a public good.

A clock tower is a private good if individuals pay for the tower to be built.

If there are external benefits associated with education,then:

The government can offer a subsidy that encourages people to seek more education.

All goods that have social value will be profitable for firms in the private sector to produce.

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, supply, and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

Exam 15: Public Goods and Public Choice

In a democracy,the median voter will tend to determine the quantities and types of public goods produced.

List and explain some of the external benefits generated by education.

The median-voter theory suggests that different political parties will not adopt the same position as the median voter to distinguish from the competition.

In a two-party democratic system,elected officials typically choose a view that is close to the median voter to ensure their reelection.

When do we expect special-interest groups to form?

If education results in external benefits,the government could subsidize education to lead the market to an inefficient level of output.

Which of the following situations contains most of the characteristics of a private good:

A good is nonrival in consumption when it:

What is public choice economics?

According to the self-interest theory of government,limitations on taxes and spending accounts are:

Special interest groups never use propaganda to express their views to government officials.

The free-rider problem is a problem intrinsic to public goods;the good or service is usually so costly that its provision generally does not depend on whether or not any single person pays.

List the two characteristics that define a public good.

A clock tower is a private good if individuals pay for the tower to be built.

If there are external benefits associated with education,then:

The government can offer a subsidy that encourages people to seek more education.

All goods that have social value will be profitable for firms in the private sector to produce.

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand, supply, and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters