Exam 5: Public Goods, Public Choice, and Government Failure

Refer to the provided supply and demand graph for a public good. Which line segment would indicate the amount by which the marginal benefit of this public good exceeds the marginal cost at a certain quantity?

"Earmarks" refer to

In presidential elections, voters often find that they do not agree with any single candidate on all the issues that matter to them (the voters). This is known as the

Refer to the table. In a choice between public safety and parks,

Refer to the provided supply and demand graph for a public good. Point c on the graph shows where the

The market system does not produce public goods because

Government can reallocate resources away from private goods toward public goods, usually through

Suppose that Steve and Susie each perceive $200 of marginal benefit from a proposed new park, whereas Elizabeth perceives $800. If the proposed tax levied on each for the park would be $300, a majority vote will

Assume that Abby, Ben, and Clara are the only citizens in a community. A proposed public good has a total cost of $1,000. All three citizens will share an equal portion of this cost in taxes. The benefit of the public good is $400 each to Abby, Ben, and Clara. Based on economic analysis, the public good should

A government is considering undertaking a construction project of an increasing scale (ranging from 1, 2, 3, to 4). The estimated marginal costs and marginal benefits of each successive scale of the project are given in the table below. What is the total amount that the government should spend on the construction project to attain maximum net benefits for the society?

If choice A wins over choice B in a majority vote, while choice B wins over choice C in a majority vote, then we can conclude that choice A would win over choice C.

Alex, Kara, and Susie are the only three people in a community. Alex is willing to pay $40 for the third unit of a public good; Kara is willing to pay $25. If the marginal cost of producing the third unit is $80, what is the minimum amount that Susie must be willing to pay for it to be efficient for government to produce the third unit?

Political logrolling always produces economically inefficient outcomes.

Refer to the provided table, which shows the ranked preferences of voters for three alternative projects, with "1" being the top preference. In a paired-choice vote between a park and a jail,

Location subsidies include all the following except

Public choice theory focuses on the economics of

Explain the special-interest effect.

Answer the question on the basis of this table showing the marginal benefit that a particular public project will provide to each of the three members of a community. No vote trading is allowed. If the tax cost of this proposed project is $600 per person, a majority vote will

The Securities and Exchange Commission's supervision of Wall Street financial firms is a possible example of regulatory capture.

One prediction of the median-voter model is that during elections, candidates will tend to become "centrists."