The table below shows the marginal benefit and marginal cost of purchasing an additional unit of 3 different public goods. \[\begin{array} { | c | c | r | r | } \hline & \text { Mar ginal benefit } & \text { Marginal cost } & { \text { Total spending an the public } } \\ \hline \text { Public pood 1 } & \$ 20 & \$ 20 & \$ 1,500 \\ \hline \text { Public pood 2 } & \$ 15 & \$ 25 & \$ 800 \\ \hline \text { Public pood 3 } & \$ 10 & \$ 5 & \$ 700 \\ \hline \end{array}\] The government is spending the socially optimal amount on:

A) public good 1. B) public good 2. C) public good 3. D) public good 1 and public good 2. A) public good 1. B) public good 2. C) public good 3. D) public good 1 and public good 2.

Exam 14: Public Goods and Tax Policy

Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below. The public's willingness to pay for the 2ⁿᵈ acre of parkland is ________.

(Multiple Choice)

4.7/5

(91)

Question 41

If the popular television show The Bachelor is shown on pay-per-view television every Monday at 9pm, then the demand curve for each episode is given below. If the regulated pay-per-view charge were $30 per household, what would be the loss in total economic surplus relative to when there is no charge to watch an episode?

(Multiple Choice)

4.9/5

(78)

Question 42

One justification for the creation of a federal level of government is:

(Multiple Choice)

4.8/5

(76)

Question 43

Logrolling refers to:

(Multiple Choice)

4.9/5

(77)

Question 44

The problems of externalities and poorly formed property rights are:

(Multiple Choice)

4.8/5

(72)

Question 45

Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below. Suppose the town can purchase land for the park at a cost of $20 per acre. The optimal park size would be ________ acres.

(Multiple Choice)

4.9/5

(71)

Question 46

The government can raise tax revenue and increase total economic surplus by taxing:

(Multiple Choice)

4.8/5

(88)

Question 47

There are ten states in the democratic nation of Katlandia, and each state has ten thousand residents. Although incomes vary, each Katlandian pays a tax equal to the total cost of all government projects divided by the number of residents in the country. Currently, two states each have one army base. An army base adds $2 million to a state's local economy each year. In addition, in terms of increased security, the annual marginal benefit to Katlandia of having an additional army base is shown below. The total cost of an army base is $8 million per year. Suppose the department of defense proposes to build a third base in the state of New Porkswick. Apart from the value of the additional security to the nation, the state economy will benefit by per resident, and each resident's taxes will increase by .

(Multiple Choice)

4.7/5

(84)

Question 48

A good or service that is highly nonrival and highly nonexcludable is a(n)________ good.

(Multiple Choice)

4.9/5

(78)

Question 49

The presence of an unregulated negative externality means that the unregulated market equilibrium quantity is:

(Multiple Choice)

4.8/5

(69)

Question 50

A pure public good is one that is:

(Multiple Choice)

4.7/5

(78)

Question 51

If a boxing fight is shown on pay-per-view television every Saturday at 4pm, the demand curve for each fight is given below. If there is a pay-per-view charge to watch a fight, the outcome is because .

(Multiple Choice)

4.9/5

(85)

Question 52

Beyond the provision of public goods, government exists to address:

(Multiple Choice)

4.9/5

(81)

Question 53

If a boxing fight is shown on pay-per-view television every Saturday at 4pm, the demand curve for each fight is given below. If the regulated pay-per-view charge to watch a fight were $5 per household, then what would be the loss in total economic surplus relative to when the there is no charge to watch the fight?

(Multiple Choice)

4.8/5

(74)

Question 54

The deadweight loss from taxing a good will be smaller for goods:

(Multiple Choice)

4.9/5

(70)

Question 55

For many pure public goods like fireworks displays, weather forecasts, and television broadcasts the marginal cost of serving one more consumer is , and the optimal quantity of the public good occurs when .

(Multiple Choice)

4.9/5

(74)

Question 56

The table below shows the marginal benefit and marginal cost of purchasing an additional unit of 3 different public goods. Mar ginal benefit Marginal cost Total spending an the public Public pood 1 \ 20 \ 20 \ 1,500 Public pood 2 \ 15 \ 25 \ 800 Public pood 3 \ 10 \ 5 \ 700 The government is spending the socially optimal amount on:

(Multiple Choice)

4.7/5

(79)

Question 57

Curly pays $12,000 in taxes and earns $150,000. Moe pays $7,000 in taxes. If the tax system is proportional, then Moe's income is:

(Multiple Choice)

4.7/5

(87)

Question 58

Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below. The public is willing to pay $14 for the ________ acre of parkland.

(Multiple Choice)

4.9/5

(81)

Question 59

If low-income households spend a larger share of their income on food than do high-income households, then a tax on food is:

(Multiple Choice)

4.8/5

(87)

Question 60

Showing 41 - 60 of 142

Exam 14: Public Goods and Tax Policy

Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below. The public's willingness to pay for the 2ⁿᵈ acre of parkland is ________.

One justification for the creation of a federal level of government is:

Logrolling refers to:

The problems of externalities and poorly formed property rights are:

Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below. Suppose the town can purchase land for the park at a cost of $20 per acre. The optimal park size would be ________ acres.

The government can raise tax revenue and increase total economic surplus by taxing:

A good or service that is highly nonrival and highly nonexcludable is a(n)________ good.

The presence of an unregulated negative externality means that the unregulated market equilibrium quantity is:

A pure public good is one that is:

If a boxing fight is shown on pay-per-view television every Saturday at 4pm, the demand curve for each fight is given below. If there is a pay-per-view charge to watch a fight, the outcome is ________ because ________.

Beyond the provision of public goods, government exists to address:

The deadweight loss from taxing a good will be smaller for goods:

For many pure public goods like fireworks displays, weather forecasts, and television broadcasts the marginal cost of serving one more consumer is ________, and the optimal quantity of the public good occurs when ________.

Curly pays $12,000 in taxes and earns $150,000. Moe pays $7,000 in taxes. If the tax system is proportional, then Moe's income is:

Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below. The public is willing to pay $14 for the ________ acre of parkland.

If low-income households spend a larger share of their income on food than do high-income households, then a tax on food is:

Thinking Like an Economist

Comparative Advantage

Supply and Demand

Elasticity

Demand

Perfectly Competitive Supply

Efficiency, Exchange, and the Invisible Hand in Action

Monopoly, Oligopoly, and Monopolistic Competition

Games and Strategic Behavior

An Introduction to Behavioral Economics

Externalities, Property Rights, and the Environment

The Economics of Information

Labor Markets, Poverty, and Income Distribution

International Trade and Trade Policy

Macroeconomics: The Birds Eye View of the Economy

Measuring Economic Activity: GDP and Unemployment

Measuring the Price Level and Inflation

Economic Growth, Productivity, and Living Standards

The Labor Market: Workers, Wages, and Unemployment

Saving and Capital Formation

Money Prices and the Federal Reserve

Financial Markets and International Capital Flows

Short-Term Economic Fluctuations: An Introduction

Spending and Output in the Short Run

Stabilizing the Economy: The Role of the Fed

Aggregate Demand, Aggregate Supply, and Inflation

Exchange Rates and the Open Economy

Filters

If a boxing fight is shown on pay-per-view television every Saturday at 4pm, the demand curve for each fight is given below. If there is a pay-per-view charge to watch a fight, the outcome is because .

For many pure public goods like fireworks displays, weather forecasts, and television broadcasts the marginal cost of serving one more consumer is , and the optimal quantity of the public good occurs when .