Question 1

What is a nonrival good? Give an example.

Accepted Answer

A good is nonrival if its use

Question 2

Which of the following is the BEST example of a common resource?

Accepted Answer

A)  a house 
B)  the Internet 
C)  air traffic control 
D)  fish in the ocean 
A)  a house 
B)  the Internet 
C)  air traffic control 
D)  fish in the ocean

Question 3

Long Beach Island, off the coast of New Jersey, is considering building a sand barrier to protect the houses on the island from future hurricanes. The marginal social benefit of the barrier is equal to the

Accepted Answer

A)  marginal private benefit of the person who benefits the most from the barrier. 
B)  marginal private benefit of the person who benefits the least from the barrier. 
C)  sum of the marginal private benefits for anyone who benefits from the barrier. 
D)  difference between the marginal private benefit of the person who benefits the most and the person who benefits the least from the barrier. 
A)  marginal private benefit of the person who benefits the most from the barrier. 
B)  marginal private benefit of the person who benefits the least from the barrier. 
C)  sum of the marginal private benefits for anyone who benefits from the barrier. 
D)  difference between the marginal private benefit of the person who benefits the most and the person who benefits the least from the barrier.

Question 4

National defense is an example of a ________.

Accepted Answer

A)  public good 
B)  natural monopoly good 
C)  common resource 
D)  private good 
A)  public good 
B)  natural monopoly good 
C)  common resource 
D)  private good

Question 5

In an unregulated market for healthcare, the quantity produced ________ the efficient quantity.

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 6

Government failure, when government actions lead to inefficiency, can result in

Accepted Answer

A)  overprovision. 
B)  underprovision. 
C)  both A and B. 
D)  neither A nor B. 
A)  overprovision. 
B)  underprovision. 
C)  both A and B. 
D)  neither A nor B.

Question 7

Public goods are those for which

Accepted Answer

A)  individuals who do not pay can be excluded from consuming the good. 
B)  individuals who do not pay cannot be excluded from consuming the good. 
C)  external costs exist. 
D)  no external costs exist. 
A)  individuals who do not pay can be excluded from consuming the good. 
B)  individuals who do not pay cannot be excluded from consuming the good. 
C)  external costs exist. 
D)  no external costs exist.

Question 8

-The table above shows the marginal benefit from providing police protection in a community of two people, Jake and Elwood. Police protection is a public good.
a) What is the marginal social benefit to community from the 4th police car on duty?
b) If the marginal social cost of a police car on duty is $37, what is the efficient number of cars on duty?
c) If the marginal social cost of a police car on duty is $70, what is the efficient number of cars on duty?

Accepted Answer

a) The community's marginal social benef

Question 9

Which of the following would most likely be provided by a natural monopoly?

Accepted Answer

A)  Michigan Radio is the state's most listened-to public radio service. 
B)  Sirius Satellite Radio is accessed through a subscription. 
C)  X96 is an alternative radio station out of Salt Lake City. 
D)  a Mariah Carey CD 
A)  Michigan Radio is the state's most listened-to public radio service. 
B)  Sirius Satellite Radio is accessed through a subscription. 
C)  X96 is an alternative radio station out of Salt Lake City. 
D)  a Mariah Carey CD

Question 10

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 11

-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 efficient number of police officers in Broomfield is

Accepted Answer

A)  2. 
B)  3. 
C)  4. 
D)  6. 
A)  2. 
B)  3. 
C)  4. 
D)  6.

Question 12

"The Internet is nonrival, which means it's a public good." Do you agree or disagree? Explain.

Accepted Answer

The statement is incorrect. A public goo

Question 13

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 14

Public goods are I. nonexcludable.
II) nonrival.

Accepted Answer

A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II 
A)  I only 
B)  II only 
C)  both I and II 
D)  neither I nor II

Question 15

What is the principle of minimum differentiation?

Accepted Answer

The principle of minimum differentiation

Question 16

Because of free riders, a private, unregulated market would not produce the efficient quantity of a public good.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following would most likely be a public good?

Accepted Answer

A)  Sirius Satellite Radio is accessed through a subscription. 
B)  iTunes sells songs through their website. 
C)  a Mariah Carey CD 
D)  Michigan Radio is the state's most listened-to public radio service. 
A)  Sirius Satellite Radio is accessed through a subscription. 
B)  iTunes sells songs through their website. 
C)  a Mariah Carey CD 
D)  Michigan Radio is the state's most listened-to public radio service.

Question 18

"I know that my vote alone will not influence whether or not any new foreign trade legislation is enacted, so I have decided not to spend the time learning about various legislative proposals." This quote reflects an example of

Accepted Answer

A)  the free-rider problem. 
B)  government failure. 
C)  rational ignorance. 
D)  voter inefficiency. 
A)  the free-rider problem. 
B)  government failure. 
C)  rational ignorance. 
D)  voter inefficiency.

Question 19

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 $300 a piece, what is the efficient quantity to produce?

Accepted Answer

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

Question 20

A common resource is nonrival but excludable.

Accepted Answer

A) True 
 B)False

What is a nonrival good? Give an example.

Which of the following is the BEST example of a common resource?

Long Beach Island, off the coast of New Jersey, is considering building a sand barrier to protect the houses on the island from future hurricanes. The marginal social benefit of the barrier is equal to the

National defense is an example of a ________.

In an unregulated market for healthcare, the quantity produced ________ the efficient quantity.

Government failure, when government actions lead to inefficiency, can result in

Public goods are those for which

Which of the following would most likely be provided by a natural monopoly?

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 Internet is nonrival, which means it's a public good." Do you agree or disagree? Explain.

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

Public goods are I. nonexcludable. II) nonrival.

What is the principle of minimum differentiation?

Because of free riders, a private, unregulated market would not produce the efficient quantity of a public good.

Which of the following would most likely be a public good?

"I know that my vote alone will not influence whether or not any new foreign trade legislation is enacted, so I have decided not to spend the time learning about various legislative proposals." This quote reflects an example of

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 $300 a piece, what is the efficient quantity to produce?

A common resource is nonrival but excludable.

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

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

What is a nonrival good? Give an example.

Which of the following is the BEST example of a common resource?

Long Beach Island, off the coast of New Jersey, is considering building a sand barrier to protect the houses on the island from future hurricanes. The marginal social benefit of the barrier is equal to the

National defense is an example of a ________.

In an unregulated market for healthcare, the quantity produced ________ the efficient quantity.

Government failure, when government actions lead to inefficiency, can result in

Public goods are those for which

Which of the following would most likely be provided by a natural monopoly?

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 Internet is nonrival, which means it's a public good." Do you agree or disagree? Explain.

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

Public goods are I. nonexcludable. II) nonrival.

What is the principle of minimum differentiation?

Because of free riders, a private, unregulated market would not produce the efficient quantity of a public good.

Which of the following would most likely be a public good?

"I know that my vote alone will not influence whether or not any new foreign trade legislation is enacted, so I have decided not to spend the time learning about various legislative proposals." This quote reflects an example of

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 $300 a piece, what is the efficient quantity to produce?

A common resource is nonrival but excludable.

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters