Question 1

When a few people share the benefit from a project and a large number of people pay for the cost,the government is more likely to approve inefficient projects.

Accepted Answer

A) True 
 B)False

Question 2

Recall the Application about the value of trees in residential neighborhoods to answer the following question(s).
-According to the Application,a mature tree adds about ________ to the value of an owner's house and generates a total external benefit of $13,000 for neighboring houses.

Accepted Answer

A)  $0 
B)  $4,500 
C)  $7,000 
D)  $13,000 
A)  $0 
B)  $4,500 
C)  $7,000 
D)  $13,000

Question 3

Free riding is a problem with public goods but not with private goods,because for the private good

Accepted Answer

A)  the good is rival. 
B)  the marginal cost of production is greater than zero. 
C)  the good is excludable. 
D)  the good is free. 
A)  the good is rival. 
B)  the marginal cost of production is greater than zero. 
C)  the good is excludable. 
D)  the good is free.

Question 4

Which of the following is NOT a way to overcome the free-rider problem?

Accepted Answer

A)  offer contributors private goods in return 
B)  arrange for matching contributions 
C)  have the government "volunteer" a wealthy person to pay for it by lottery 
D)  appeal to the individual's sense of civic or moral responsibility 
A)  offer contributors private goods in return 
B)  arrange for matching contributions 
C)  have the government "volunteer" a wealthy person to pay for it by lottery 
D)  appeal to the individual's sense of civic or moral responsibility

Question 5

Every good or service that comes from the government is automatically considered a public good.

Accepted Answer

A) True 
 B)False

Question 6

Food stamps handed out to the needy by the government are an example of a public good.

Accepted Answer

A) True 
 B)False

Question 7

Recall the Application about space debris in the atmosphere to answer the following question(s).
-Recall the Application.The clearing of space debris is a public good that is subject to

Accepted Answer

A)  rivalry and excludability. 
B)  the free-rider problem. 
C)  the median-voter problem. 
D)  external benefits, but not external costs. 
A)  rivalry and excludability. 
B)  the free-rider problem. 
C)  the median-voter problem. 
D)  external benefits, but not external costs.

Question 8

When one person benefits from national defense,he or she reduces the benefit to others.

Accepted Answer

A) True 
 B)False

Question 9

When there are external costs,the government can encourage people to take action that benefit other people.

Accepted Answer

A) True 
 B)False

Question 10

Private goods are

Accepted Answer

A)  rival in consumption and their benefits are excludable. 
B)  nonrival in consumption and their benefits are excludable. 
C)  nonrival in consumption and their benefits are nonexcludable. 
D)  rival in consumption and their benefits are nonexcludable. 
A)  rival in consumption and their benefits are excludable. 
B)  nonrival in consumption and their benefits are excludable. 
C)  nonrival in consumption and their benefits are nonexcludable. 
D)  rival in consumption and their benefits are nonexcludable.

Question 11

The marginal social benefit of an activity equals its marginal private benefit plus its marginal external benefit.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true concerning public goods?

Accepted Answer

A)  One person's enjoyment of a public good reduces another person's enjoyment from the same public good. 
B)  People cannot be prevented from enjoying a public good. 
C)  Public goods can be produced and patented by individuals. 
D)  none of the above 
A)  One person's enjoyment of a public good reduces another person's enjoyment from the same public good. 
B)  People cannot be prevented from enjoying a public good. 
C)  Public goods can be produced and patented by individuals. 
D)  none of the above

Question 13

List four different theories of how the government operates.

Accepted Answer

(1) Governments take actions to promote

Question 14

Recall the Application about the benefits provided by the LoJack auto recovery system to answer the following question(s).
-Recall the Application.Which of the following is NOT a benefit from the LoJack system?

Accepted Answer

A)  more stolen cars recovered 
B)  more police being hired 
C)  lower insurance costs 
D)  fewer automobile thefts 
A)  more stolen cars recovered 
B)  more police being hired 
C)  lower insurance costs 
D)  fewer automobile thefts

Question 15

The purchase of fire extinguishers by apartment dwellers provides benefits to their neighbors.Explain why this situation leads to an inefficient outcome.

Accepted Answer

When the person renting an apartment buy

Question 16

The free-rider problem arises when the number of individuals who can benefit is large and exclusion of most of them is possible.

Accepted Answer

A) True 
 B)False

Question 17

If there are external benefits associated with education,then

Accepted Answer

A)  the social benefit exceeds the private benefit. 
B)  the private benefit exceeds the social benefit. 
C)  the social benefit equals the private benefit. 
D)  None of the above are true. 
A)  the social benefit exceeds the private benefit. 
B)  the private benefit exceeds the social benefit. 
C)  the social benefit equals the private benefit. 
D)  None of the above are true.

Question 18

Which of the following would NOT be considered to be a public good?

Accepted Answer

A)  national defense 
B)  radio broadcasts 
C)  police protection 
D)  a newspaper 
A)  national defense 
B)  radio broadcasts 
C)  police protection 
D)  a newspaper

Question 19

In a two-party democratic system,elected officials typically choose a view that is close to the median voter to ensure their reelection.

Accepted Answer

A) True 
 B)False

Question 20

What is a public good?

Accepted Answer

A public good is a g

When a few people share the benefit from a project and a large number of people pay for the cost,the government is more likely to approve inefficient projects.

Recall the Application about the value of trees in residential neighborhoods to answer the following question(s). -According to the Application,a mature tree adds about ________ to the value of an owner's house and generates a total external benefit of $13,000 for neighboring houses.

Free riding is a problem with public goods but not with private goods,because for the private good

Which of the following is NOT a way to overcome the free-rider problem?

Every good or service that comes from the government is automatically considered a public good.

Food stamps handed out to the needy by the government are an example of a public good.

Recall the Application about space debris in the atmosphere to answer the following question(s). -Recall the Application.The clearing of space debris is a public good that is subject to

When one person benefits from national defense,he or she reduces the benefit to others.

When there are external costs,the government can encourage people to take action that benefit other people.

Private goods are

The marginal social benefit of an activity equals its marginal private benefit plus its marginal external benefit.

Which of the following is true concerning public goods?

List four different theories of how the government operates.

Recall the Application about the benefits provided by the LoJack auto recovery system to answer the following question(s). -Recall the Application.Which of the following is NOT a benefit from the LoJack system?

The purchase of fire extinguishers by apartment dwellers provides benefits to their neighbors.Explain why this situation leads to an inefficient outcome.

The free-rider problem arises when the number of individuals who can benefit is large and exclusion of most of them is possible.

If there are external benefits associated with education,then

Which of the following would NOT be considered to be a public good?

In a two-party democratic system,elected officials typically choose a view that is close to the median voter to ensure their reelection.

What is a public good?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand,supply,and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters

Exam 15: Public Goods and Public Choice

When a few people share the benefit from a project and a large number of people pay for the cost,the government is more likely to approve inefficient projects.

Recall the Application about the value of trees in residential neighborhoods to answer the following question(s). -According to the Application,a mature tree adds about ________ to the value of an owner's house and generates a total external benefit of $13,000 for neighboring houses.

Free riding is a problem with public goods but not with private goods,because for the private good

Which of the following is NOT a way to overcome the free-rider problem?

Every good or service that comes from the government is automatically considered a public good.

Food stamps handed out to the needy by the government are an example of a public good.

Recall the Application about space debris in the atmosphere to answer the following question(s). -Recall the Application.The clearing of space debris is a public good that is subject to

When one person benefits from national defense,he or she reduces the benefit to others.

When there are external costs,the government can encourage people to take action that benefit other people.

Private goods are

The marginal social benefit of an activity equals its marginal private benefit plus its marginal external benefit.

Which of the following is true concerning public goods?

List four different theories of how the government operates.

Recall the Application about the benefits provided by the LoJack auto recovery system to answer the following question(s). -Recall the Application.Which of the following is NOT a benefit from the LoJack system?

The purchase of fire extinguishers by apartment dwellers provides benefits to their neighbors.Explain why this situation leads to an inefficient outcome.

The free-rider problem arises when the number of individuals who can benefit is large and exclusion of most of them is possible.

If there are external benefits associated with education,then

Which of the following would NOT be considered to be a public good?

In a two-party democratic system,elected officials typically choose a view that is close to the median voter to ensure their reelection.

What is a public good?

Introduction: What Is Economics

The Key Principles of Economics

Exchange and Markets

Demand,supply,and Market Equilibrium

Elasticity: a Measure of Responsiveness

Market Efficiency and Government Intervention

Consumer Choice: Utility Theory and Insights From Neuroscience

Production Technology and Cost

Perfect Competition

Monopoly and Price Discrimination

Market Entry and Monopolistic Competition

Oligopoly and Strategic Behavior

Controlling Market Power: Antitrust and Regulation

Imperfect Information: Adverse Selection and Moral Hazard

External Costs and Environmental Policy

The Labor Market and the Distribution of Income

International Trade and Public Policy

Filters