Exam 4: The Role of Government

In response to the global recession of 2008 and 2009,governments around the world

If you burn garbage in your backyard and the smoke damages a neighbor's house,the damage is considered an externality.

In economics,a public good

Which of the following occurs if government intervention forces the economy inside the production possibilities curve?

From 1990 to 2010,the public sector share of total output

If your neighbors remove the weeds in their yard and this activity prevents weed seeds from blowing into your yard,the benefit you receive is a public good.

Which of the following justifies the federal government's role in antitrust enforcement?

The difference between public goods and private goods rests on technical considerations of exclusion of use and not political philosophy.

Governments usually build highways because it is difficult to exclude individuals who don't pay for the highways from using them.What type of market failure is involved?

The amendment to the U.S.Constitution that granted the federal government the authority to collect income taxes was the

The market mix of output and the optimal mix of output are always the same.

The central question in determining whether a good is public or private is whether

Using Figure 4.1,suppose that point B represents the optimal mix of output for a society.If market forces cause society to produce and consume at point C,then

If public goods were marketed like private goods,then

An In the News article titled "State Lotteries: a Tax on the Uneducated and the Poor" reports that poor people spend a larger percentage of their income on government-promoted gambling than do rich people.On the basis of this information,we can conclude that lotteries function as

In real terms,the cost of government spending is measured by

Market power may result from

States receive most of their tax revenues from

In the cost-benefit analysis of public goods,the benefits

From an economic standpoint,government intervention may be justified