Question 1

Food is an example of a ________ good.

Accepted Answer

A)  nonrival and nonexcludable 
B)  rival and excludable 
C)  nonrival and excludable 
D)  rival and nonexcludable 
A)  nonrival and nonexcludable 
B)  rival and excludable 
C)  nonrival and excludable 
D)  rival and nonexcludable

Question 2

In a single payer model of healthcare, the government pays for all healthcare. Because patients access healthcare at a zero or low cost, the quantity of healthcare services demanded exceeds the quantity provided.

Accepted Answer

A)  Both sentences are false. 
B)  The first sentence is false; the second sentence is correct. 
C)  The first sentence is correct; the second sentence is false. 
D)  Both sentences are correct. 
A)  Both sentences are false. 
B)  The first sentence is false; the second sentence is correct. 
C)  The first sentence is correct; the second sentence is false. 
D)  Both sentences are correct.

Question 3

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

Accepted Answer

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

Question 4

The economy's marginal social benefit curve for a public good is equal to the

Accepted Answer

A)  horizontal sum of the individual demand curves. 
B)  vertical sum of the individual marginal benefit curves. 
C)  horizontal sum of the individual marginal benefit curves. 
D)  vertical sum of the individual supply curves. 
A)  horizontal sum of the individual demand curves. 
B)  vertical sum of the individual marginal benefit curves. 
C)  horizontal sum of the individual marginal benefit curves. 
D)  vertical sum of the individual supply curves.

Question 5

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

Accepted Answer

A)  a house 
B)  a bridge during rush hour 
C)  air traffic control 
D)  fish in the ocean 
A)  a house 
B)  a bridge during rush hour 
C)  air traffic control 
D)  fish in the ocean

Question 6

-Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. If the marginal social cost of a satellite is $95, the efficient quantity of satellites is

Accepted Answer

A)  0. 
B)  1. 
C)  2. 
D)  3. 
A)  0. 
B)  1. 
C)  2. 
D)  3.

Question 7

For a public good, the marginal social benefit curve is the ________ summation of all the individual marginal benefit curves. For a private good, the marginal social benefit curve is the ________ summation of all the individual marginal benefit curves.

Accepted Answer

A)  horizontal; vertical 
B)  vertical; horizontal 
C)  vertical; vertical 
D)  horizontal; horizontal 
A)  horizontal; vertical 
B)  vertical; horizontal 
C)  vertical; vertical 
D)  horizontal; horizontal

Question 8

Which of the following would most likely be a private good?

Accepted Answer

A)  a Mariah Carey CD 
B)  Sirius Satellite Radio is accessed through a subscription. 
C)  Michigan Radio is the state's most listened-to public radio service. 
D)  iTunes sells songs through their website. 
A)  a Mariah Carey CD 
B)  Sirius Satellite Radio is accessed through a subscription. 
C)  Michigan Radio is the state's most listened-to public radio service. 
D)  iTunes sells songs through their website.

Question 9

National defense is an example of a

Accepted Answer

A)  public good. 
B)  natural monopoly good. 
C)  common resource. 
D)  private good. 
A)  public good. 
B)  natural monopoly good. 
C)  common resource. 
D)  private good.

Question 10

The principle of minimum differentiation

Accepted Answer

A)  results in political parties proposing very similar or possibly identical policies. 
B)  refers to the tendency of competitors to make themselves different in order appeal to the maximum number of clients or voters. 
C)  explains why Burger King, Wendy's, and other fast food restaurants tend to locate far away from each other. 
D)  explains why political leaders always strongly point out how they differ from their opponents. 
A)  results in political parties proposing very similar or possibly identical policies. 
B)  refers to the tendency of competitors to make themselves different in order appeal to the maximum number of clients or voters. 
C)  explains why Burger King, Wendy's, and other fast food restaurants tend to locate far away from each other. 
D)  explains why political leaders always strongly point out how they differ from their opponents.

Question 11

Why will a private market be unable to produce the efficient quantity of public goods?

Accepted Answer

A)  because the good's marginal cost is too low 
B)  because the good is nonexcludable, so there is the free rider problem 
C)  because the good is rival, so no one will want to pay the producer for it 
D)  All of the above answers are correct. 
A)  because the good's marginal cost is too low 
B)  because the good is nonexcludable, so there is the free rider problem 
C)  because the good is rival, so no one will want to pay the producer for it 
D)  All of the above answers are correct.

Question 12

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

Accepted Answer

A)  a house 
B)  the Internet 
C)  Fourth of July fireworks 
D)  fish in the ocean 
A)  a house 
B)  the Internet 
C)  Fourth of July fireworks 
D)  fish in the ocean

Question 13

-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 well informed and know what is best for them, the political equilibrium is that ________ police officers will be hired.

Accepted Answer

A)  2 
B)  4 
C)  6 
D)  3 
A)  2 
B)  4 
C)  6 
D)  3

Question 14

In an unregulated market, some healthcare consumers

Accepted Answer

A)  overestimate its benefit. 
B)  cannot afford the care they need. 
C)  overestimate their future need. 
D)  All of the above are correct. 
A)  overestimate its benefit. 
B)  cannot afford the care they need. 
C)  overestimate their future need. 
D)  All of the above are correct.

Question 15

If the consumption of a good decreases the quantity available for another person, the good is

Accepted Answer

A)  rival. 
B)  excludable. 
C)  pure. 
D)  free. 
A)  rival. 
B)  excludable. 
C)  pure. 
D)  free.

Question 16

A good or service or a resource is nonexcludable if

Accepted Answer

A)  it is possible to prevent someone from enjoying its benefits. 
B)  it is not possible to prevent someone from benefiting from it. 
C)  its use by one person decreases the quantity available for someone else. 
D)  its use by one person does not decrease the quantity available for someone else. 
A)  it is possible to prevent someone from enjoying its benefits. 
B)  it is not possible to prevent someone from benefiting from it. 
C)  its use by one person decreases the quantity available for someone else. 
D)  its use by one person does not decrease the quantity available for someone else.

Question 17

-If the government regulates the market in the above figure in a way to achieve efficiency, then ________ vaccinations will be produced and consumed.

Accepted Answer

A)  0 
B)  30 thousand 
C)  50 thousand 
D)  None of the above answers is correct. 
A)  0 
B)  30 thousand 
C)  50 thousand 
D)  None of the above answers is correct.

Question 18

If people can benefit from a good even if they do not pay for it, the good is nonrival.

Accepted Answer

A) True 
 B)False

Question 19

Free riding

Accepted Answer

A)  is possible if the consumption of a good is characterized by excludability. 
B)  is possible if the consumption of a good is characterized by nonexcludability. 
C)  is characteristic of private goods. 
D)  occurs when consumers pay too much for services provided by government. 
A)  is possible if the consumption of a good is characterized by excludability. 
B)  is possible if the consumption of a good is characterized by nonexcludability. 
C)  is characteristic of private goods. 
D)  occurs when consumers pay too much for services provided by government.

Question 20

The efficient quantity of a public good is the quantity that has the highest possible marginal social benefit.

Accepted Answer

A) True 
 B)False

Food is an example of a ________ good.

In a single payer model of healthcare, the government pays for all healthcare. Because patients access healthcare at a zero or low cost, the quantity of healthcare services demanded exceeds the quantity provided.

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

The economy's marginal social benefit curve for a public good is equal to the

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

-Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. If the marginal social cost of a satellite is $95, the efficient quantity of satellites is

For a public good, the marginal social benefit curve is the summation of all the individual marginal benefit curves. For a private good, the marginal social benefit curve is the summation of all the individual marginal benefit curves.

Which of the following would most likely be a private good?

National defense is an example of a

The principle of minimum differentiation

Why will a private market be unable to produce the efficient quantity of public goods?

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

In an unregulated market, some healthcare consumers

If the consumption of a good decreases the quantity available for another person, the good is

A good or service or a resource is nonexcludable if

-If the government regulates the market in the above figure in a way to achieve efficiency, then ________ vaccinations will be produced and consumed.

If people can benefit from a good even if they do not pay for it, the good is nonrival.

Free riding

The efficient quantity of a public good is the quantity that has the highest possible marginal social benefit.

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

Food is an example of a ________ good.

In a single payer model of healthcare, the government pays for all healthcare. Because patients access healthcare at a zero or low cost, the quantity of healthcare services demanded exceeds the quantity provided.

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

The economy's marginal social benefit curve for a public good is equal to the

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

-Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. If the marginal social cost of a satellite is $95, the efficient quantity of satellites is

For a public good, the marginal social benefit curve is the ________ summation of all the individual marginal benefit curves. For a private good, the marginal social benefit curve is the ________ summation of all the individual marginal benefit curves.

Which of the following would most likely be a private good?

National defense is an example of a

The principle of minimum differentiation

Why will a private market be unable to produce the efficient quantity of public goods?

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

In an unregulated market, some healthcare consumers

If the consumption of a good decreases the quantity available for another person, the good is

A good or service or a resource is nonexcludable if

-If the government regulates the market in the above figure in a way to achieve efficiency, then ________ vaccinations will be produced and consumed.

If people can benefit from a good even if they do not pay for it, the good is nonrival.

Free riding

The efficient quantity of a public good is the quantity that has the highest possible marginal social benefit.

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

For a public good, the marginal social benefit curve is the summation of all the individual marginal benefit curves. For a private good, the marginal social benefit curve is the summation of all the individual marginal benefit curves.