Question 1

A political equilibrium can never be reached without voters, firms, politicians and

Accepted Answer

A)  bureaucrats. 
B)  public costs. 
C)  indifference curves. 
D)  market prices. 
A)  bureaucrats. 
B)  public costs. 
C)  indifference curves. 
D)  market prices.

Question 2

Free riding is possible if the good is nonexcludable.

Accepted Answer

A) True 
 B)False

Question 3

Katie Bobby
  
-The above table shows the marginal benefit from submarines for the only two citizens of a country. Submarines are a public good. If submarines cost $100 a piece to produce, what is the efficient quantity of submarines?

Accepted Answer

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

Question 4

An example of a public good is national defense services.

Accepted Answer

A) True 
 B)False

Question 5

If it is impossible to prevent someone from benefiting from a good regardless of whether or not the person paid for it, then the good is

Accepted Answer

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

Question 6

-The table above gives information on the perceived marginal (private) benefit and marginal social benefit associated with vaccination against varicella (chicken pox). If the marginal cost of a varicella vaccination is $10, then the unregulated competitive equilibrium will have

Accepted Answer

A)  2 million vaccinations. 
B)  3 million vaccinations. 
C)  4 million vaccinations. 
D)  5 million vaccinations. 
A)  2 million vaccinations. 
B)  3 million vaccinations. 
C)  4 million vaccinations. 
D)  5 million vaccinations.

Question 7

What is a nonrival good? Give an example.

Accepted Answer

A good is nonrival if its use

Question 8

Nonrivalry is a feature of

Accepted Answer

A)  goods but not services. 
B)  all nonexcludable goods. 
C)  excludable goods. 
D)  public goods. 
A)  goods but not services. 
B)  all nonexcludable goods. 
C)  excludable goods. 
D)  public goods.

Question 9

In 2010, the Center for Disease Control has recommended that every child between the ages of 6 months and 18 years be vaccinated, except those with a serious egg allergy. Dr. Berreman states,"By protecting ourselves from flu, we also protect our families and neighbors." Which is a solution that could be used to achieve a more efficient allocation of resources in the presence of this externality?

Accepted Answer

A)  The government could tax the producers of the flu vaccine. 
B)  The government could tax the consumers of the flu vaccine. 
C)  The government could offer a free flu vaccine clinic. 
D)  The government could increase the price of flu vaccines. 
A)  The government could tax the producers of the flu vaccine. 
B)  The government could tax the consumers of the flu vaccine. 
C)  The government could offer a free flu vaccine clinic. 
D)  The government could increase the price of flu vaccines.

Question 10

-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. To support the efficient number of police officers, each resident of Broomfield will have to pay ________ per year in taxes.

Accepted Answer

A)  $36 
B)  $6.40 
C)  $18 
D)  $60 
A)  $36 
B)  $6.40 
C)  $18 
D)  $60

Question 11

For health care, the perceived marginal benefit ________ the marginal social benefit.

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 12

If a voter is ignorant of some of the issues that affect public policy, then the voter is definitely behaving irrationally.

Accepted Answer

A) True 
 B)False

Question 13

-Mike, Joe, and Sam are roommates. They need lamps for their common living room. Lamps in their living room are a public good for these roommates. The marginal benefit that each individual receives from varying numbers of lamps in the living room is given in the table above. If the marginal cost of a lamp is 13, what is the efficient number of lamps for the roommates to purchase?

Accepted Answer

A)  2 
B)  5 
C)  0 
D)  1 
A)  2 
B)  5 
C)  0 
D)  1

Question 14

-The table above gives information on the perceived marginal (private) benefit and marginal social benefit associated with vaccination against varicella (chicken pox). If the marginal cost of a varicella vaccination is $10, then the efficient quantity of vaccinations is

Accepted Answer

A)  3 million vaccinations. 
B)  4 million vaccinations. 
C)  5 million vaccinations. 
D)  6 million vaccinations. 
A)  3 million vaccinations. 
B)  4 million vaccinations. 
C)  5 million vaccinations. 
D)  6 million vaccinations.

Question 15

Rock climbing areas are often on public lands. These areas, which are often crowded, are classified as

Accepted Answer

A)  rival and excludable. 
B)  non-rival and excludable. 
C)  rival and non-excludable. 
D)  non-rival and non-excludable. 
A)  rival and excludable. 
B)  non-rival and excludable. 
C)  rival and non-excludable. 
D)  non-rival and non-excludable.

Question 16

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

Accepted Answer

A)  a can of Mountain Dew 
B)  fish in the ocean 
C)  cable television 
D)  national defense 
A)  a can of Mountain Dew 
B)  fish in the ocean 
C)  cable television 
D)  national defense

Question 17

Efficiency in the provision of a public good is achieved when its

Accepted Answer

A)  total social benefit equals its total social cost. 
B)  average social benefit equals its average social cost. 
C)  marginal social benefit equals its marginal social cost. 
D)  marginal social benefit equals zero. 
A)  total social benefit equals its total social cost. 
B)  average social benefit equals its average social cost. 
C)  marginal social benefit equals its marginal social cost. 
D)  marginal social benefit equals zero.

Question 18

If it possible to prevent a person from enjoying the benefits of a good unless the person pays for the good, the good is

Accepted Answer

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

Question 19

The decision not to acquire information because the cost of acquiring the information exceeds the expected benefit from the information is known as

Accepted Answer

A)  rational ignorance. 
B)  the principle of minimum differentiation. 
C)  public choice theory. 
D)  inefficient provision. 
A)  rational ignorance. 
B)  the principle of minimum differentiation. 
C)  public choice theory. 
D)  inefficient provision.

Question 20

-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. The marginal benefit for all of Broomfield from hiring the 4th police officer is

Accepted Answer

A)  $56,000. 
B)  $5.60. 
C)  $8,000. 
D)  $6.00. 
A)  $56,000. 
B)  $5.60. 
C)  $8,000. 
D)  $6.00.

A political equilibrium can never be reached without voters, firms, politicians and

Free riding is possible if the good is nonexcludable.

Katie Bobby -The above table shows the marginal benefit from submarines for the only two citizens of a country. Submarines are a public good. If submarines cost $100 a piece to produce, what is the efficient quantity of submarines?

An example of a public good is national defense services.

If it is impossible to prevent someone from benefiting from a good regardless of whether or not the person paid for it, then the good is

-The table above gives information on the perceived marginal (private) benefit and marginal social benefit associated with vaccination against varicella (chicken pox). If the marginal cost of a varicella vaccination is $10, then the unregulated competitive equilibrium will have

What is a nonrival good? Give an example.

Nonrivalry is a feature of

For health care, the perceived marginal benefit ________ the marginal social benefit.

If a voter is ignorant of some of the issues that affect public policy, then the voter is definitely behaving irrationally.

-The table above gives information on the perceived marginal (private) benefit and marginal social benefit associated with vaccination against varicella (chicken pox). If the marginal cost of a varicella vaccination is $10, then the efficient quantity of vaccinations is

Rock climbing areas are often on public lands. These areas, which are often crowded, are classified as

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

Efficiency in the provision of a public good is achieved when its

If it possible to prevent a person from enjoying the benefits of a good unless the person pays for the good, the good is

The decision not to acquire information because the cost of acquiring the information exceeds the expected benefit from the information is known as

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

A political equilibrium can never be reached without voters, firms, politicians and

Free riding is possible if the good is nonexcludable.

Katie Bobby -The above table shows the marginal benefit from submarines for the only two citizens of a country. Submarines are a public good. If submarines cost $100 a piece to produce, what is the efficient quantity of submarines?

An example of a public good is national defense services.

If it is impossible to prevent someone from benefiting from a good regardless of whether or not the person paid for it, then the good is

-The table above gives information on the perceived marginal (private) benefit and marginal social benefit associated with vaccination against varicella (chicken pox). If the marginal cost of a varicella vaccination is $10, then the unregulated competitive equilibrium will have

What is a nonrival good? Give an example.

Nonrivalry is a feature of

For health care, the perceived marginal benefit ________ the marginal social benefit.

If a voter is ignorant of some of the issues that affect public policy, then the voter is definitely behaving irrationally.

-The table above gives information on the perceived marginal (private) benefit and marginal social benefit associated with vaccination against varicella (chicken pox). If the marginal cost of a varicella vaccination is $10, then the efficient quantity of vaccinations is

Rock climbing areas are often on public lands. These areas, which are often crowded, are classified as

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

Efficiency in the provision of a public good is achieved when its

If it possible to prevent a person from enjoying the benefits of a good unless the person pays for the good, the good is

The decision not to acquire information because the cost of acquiring the information exceeds the expected benefit from the information is known as

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