Question 1

The fact that you may not know who your congressional representative is represents

Accepted Answer

A)  rational ignorance on your part. 
B)  the rival nature of information. 
C)  inefficient oversupply of public servants. 
D)  the use of the median voter theorem. 
A)  rational ignorance on your part. 
B)  the rival nature of information. 
C)  inefficient oversupply of public servants. 
D)  the use of the median voter theorem.

Question 2

Protection of rivers in Idaho is a public good. If the marginal social cost of protecting rivers in Idaho exceeds the marginal social benefit of river protection, is there more than, less than, or the efficient amount of river protection taking place?

Accepted Answer

If the marginal social cost exceeds the

Question 3

-Broomfield city council is deciding how many police officers the city needs. Broomfield's population is 10,000 people. The marginal cost of a police officer is $60,000 per year. The marginal benefit schedule of an average city resident from police protection is shown in the table above. Police protection is a public good. If voters in Broomfield are rationally ignorant and the police department achieves the highest attainable budget, each resident of Broomfield will pay ________ per year in taxes.

Accepted Answer

A)  $18 
B)  $36 
C)  $4 
D)  $60 
A)  $18 
B)  $36 
C)  $4 
D)  $60

Question 4

Which of the following is the BEST example of a public good?

Accepted Answer

A)  public transportation by bus 
B)  clean air 
C)  community swimming pools for which the user must pay a fee 
D)  postal services 
A)  public transportation by bus 
B)  clean air 
C)  community swimming pools for which the user must pay a fee 
D)  postal services

Question 5

-The table above shows the marginal benefit that arises from providing police protection in an economy of two people, Paul and Art. Police protection is a public good.
a) Construct a table of the economy's marginal social benefit from providing police protection.
b) What is the economy's marginal social benefit from having 3 police cars on duty?

Accepted Answer

@#IMG-DLM& a) The table showing the economy's marg

Question 6

Which of the following is likely to be nonexcludable but rival?

Accepted Answer

A)  walking along a crowded hiking trail 
B)  watching cable TV 
C)  viewing flowers along the highway 
D)  listening to a local radio station 
A)  walking along a crowded hiking trail 
B)  watching cable TV 
C)  viewing flowers along the highway 
D)  listening to a local radio station

Question 7

Rational ignorance means

Accepted Answer

A)  ignorance is rationed. 
B)  the benefit from some information is not worth the cost of collecting it. 
C)  some people do not understand rationality. 
D)  the information is unavailable. 
A)  ignorance is rationed. 
B)  the benefit from some information is not worth the cost of collecting it. 
C)  some people do not understand rationality. 
D)  the information is unavailable.

Question 8

If it is impossible or very costly to prevent someone from benefiting from a good even if the person does NOT pay for it, the good is

Accepted Answer

A)  nonrival. 
B)  nonexcludable. 
C)  pure. 
D)  rival. 
A)  nonrival. 
B)  nonexcludable. 
C)  pure. 
D)  rival.

Question 9

Public goods create a free-rider problem because the quantity of the good that a person consumes ________ for that good.

Accepted Answer

A)  does not depend on the amount that the person pays 
B)  increases as that person pays less 
C)  increases as that person pays more 
D)  decreases as that person pays more 
A)  does not depend on the amount that the person pays 
B)  increases as that person pays less 
C)  increases as that person pays more 
D)  decreases as that person pays more

Question 10

"I know that my vote alone will not influence whether or not any new foreign trade legislation is enacted, so I have decided not to spend the time learning about various legislative proposals." This quote reflects an example of

Accepted Answer

A)  the free-rider problem. 
B)  government failure. 
C)  rational ignorance. 
D)  voter inefficiency. 
A)  the free-rider problem. 
B)  government failure. 
C)  rational ignorance. 
D)  voter inefficiency.

Question 11

What is rational ignorance?

Accepted Answer

Rational ignorance is the voter's decisi

Question 12

The concept of rational ignorance can explain why the government might provide more than the efficient quantity of a public good.

Accepted Answer

A) True 
 B)False

Question 13

John receives a marginal benefit of $80 from one missile. Nick receives a marginal benefit of $50 from one missile. Christina receives a marginal benefit of $65 from one missile. John, Nick, and Christina are the only people in the economy. What is the economy's marginal social benefit from one missile?

Accepted Answer

A)  $50 
B)  $65 
C)  $80 
D)  $195 
A)  $50 
B)  $65 
C)  $80 
D)  $195

Question 14

In the political marketplace, firms do all of the following EXCEPT

Accepted Answer

A)  vote. 
B)  pay taxes. 
C)  evaluate policy proposals of politicians. 
D)  benefit from public goods and services. 
A)  vote. 
B)  pay taxes. 
C)  evaluate policy proposals of politicians. 
D)  benefit from public goods and services.

Question 15

Under what conditions will the political process provide an inefficient amount of a public good?

Accepted Answer

The government will provide an inefficie

Question 16

-The above figure shows the marginal benefit and marginal cost curves for a public good. The quantity that has the best prospect of winning in an election by well-informed voters is

Accepted Answer

A)  A. 
B)  B. 
C)  C. 
D)  zero units supplied. 
A)  A. 
B)  B. 
C)  C. 
D)  zero units supplied.

Question 17

You are studying with a friend and your friend says, "Private goods are excludable and nonrival, while public goods are nonexcludable and rival." Do you agree?

Accepted Answer

No, private goods are excludable and riv

Question 18

Because of voter rational ignorance, the government might not produce the efficient quantity of a public good.

Accepted Answer

A) True 
 B)False

Question 19

In an unregulated market for healthcare, the quantity produced ________ the efficient quantity.

Accepted Answer

A)  is less than 
B)  is greater than 
C)  is equal to 
D)  cannot be compared to 
A)  is less than 
B)  is greater than 
C)  is equal to 
D)  cannot be compared to

Question 20

The quantity of a public good supplied by a private market is

Accepted Answer

A)  smaller than the efficient quantity. 
B)  equal to the efficient quantity. 
C)  larger than the efficient quantity. 
D)  the quantity that maximizes total public benefit. 
A)  smaller than the efficient quantity. 
B)  equal to the efficient quantity. 
C)  larger than the efficient quantity. 
D)  the quantity that maximizes total public benefit.

The fact that you may not know who your congressional representative is represents

Protection of rivers in Idaho is a public good. If the marginal social cost of protecting rivers in Idaho exceeds the marginal social benefit of river protection, is there more than, less than, or the efficient amount of river protection taking place?

Which of the following is the BEST example of a public good?

Which of the following is likely to be nonexcludable but rival?

Rational ignorance means

If it is impossible or very costly to prevent someone from benefiting from a good even if the person does NOT pay for it, the good is

Public goods create a free-rider problem because the quantity of the good that a person consumes ________ for that good.

"I know that my vote alone will not influence whether or not any new foreign trade legislation is enacted, so I have decided not to spend the time learning about various legislative proposals." This quote reflects an example of

What is rational ignorance?

The concept of rational ignorance can explain why the government might provide more than the efficient quantity of a public good.

In the political marketplace, firms do all of the following EXCEPT

Under what conditions will the political process provide an inefficient amount of a public good?

-The above figure shows the marginal benefit and marginal cost curves for a public good. The quantity that has the best prospect of winning in an election by well-informed voters is

You are studying with a friend and your friend says, "Private goods are excludable and nonrival, while public goods are nonexcludable and rival." Do you agree?

Because of voter rational ignorance, the government might not produce the efficient quantity of a public good.

In an unregulated market for healthcare, the quantity produced ________ the efficient quantity.

The quantity of a public good supplied by a private market is

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 16: Public Choices, Public Goods, and Healthcare

The fact that you may not know who your congressional representative is represents

Protection of rivers in Idaho is a public good. If the marginal social cost of protecting rivers in Idaho exceeds the marginal social benefit of river protection, is there more than, less than, or the efficient amount of river protection taking place?

Which of the following is the BEST example of a public good?

Which of the following is likely to be nonexcludable but rival?

Rational ignorance means

If it is impossible or very costly to prevent someone from benefiting from a good even if the person does NOT pay for it, the good is

Public goods create a free-rider problem because the quantity of the good that a person consumes ________ for that good.

"I know that my vote alone will not influence whether or not any new foreign trade legislation is enacted, so I have decided not to spend the time learning about various legislative proposals." This quote reflects an example of

What is rational ignorance?

The concept of rational ignorance can explain why the government might provide more than the efficient quantity of a public good.

In the political marketplace, firms do all of the following EXCEPT

Under what conditions will the political process provide an inefficient amount of a public good?

-The above figure shows the marginal benefit and marginal cost curves for a public good. The quantity that has the best prospect of winning in an election by well-informed voters is

You are studying with a friend and your friend says, "Private goods are excludable and nonrival, while public goods are nonexcludable and rival." Do you agree?

Because of voter rational ignorance, the government might not produce the efficient quantity of a public good.

In an unregulated market for healthcare, the quantity produced ________ the efficient quantity.

The quantity of a public good supplied by a private market is

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters