Exam 16: Public Choices, Public Goods, and Healthcare

To two hunters, a deer running in a forest is

The efficient quantity of a public good is the quantity that sets the marginal social benefit from the good equal to the good's marginal social cost.

The efficient quantity of a public good is provided when the economy's

If I increase my consumption of a good and this has no impact the quantity you can consume of the same good, then this good is

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

Which of the following nations spends more per person on healthcare?

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

Because Jess didn't have the time to understand the issue, she did not vote on the amendment about clean energy. Jess's behavior demonstrates the economic principle of ________.

What are the differences between public goods and private goods?

Some years ago The Wall Street Journal reported that the government of Thailand "plans to launch a chain of more than 3,000 Thai restaurants world-wide over the next five years, with the largest number, more than 1,000, slated for the United States." The Thai government will have a 30 percent minority stake in the restaurants and the rest will be given to Thai owners. The country's deputy commerce minister explains that the government will play an active role in drawing up menus, making sure that genuine Thai food is served and ensuring that 70 percent of supplies for the restaurants are imported from Thailand. Because the Thai government will be part owner of these restaurants, are these restaurants public goods?

Which of the following is the BEST example of a good that is nonrival and excludable?

Rational ignorance says that voters will

-The above figure shows the marginal benefit and marginal cost curves for a public good. The efficient quantity is

-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. The marginal benefit for the second lamp to this group of roommates taken as a whole is

When describing goods and services, what is meant by the terms "rival" and "nonrival?" Are private goods rival or nonrival? Are public goods rival or nonrival? Are common resources rival or nonrival?

If the consumption of a good or service by one person does not decrease the quantity available for another person, the good or service is

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

The fact that you may not know who your congressional representative is represents

-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 rationally ignorant and the police department achieves the highest attainable budget, the political equilibrium is ________ police officers.

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