Question 1

In the political market place, typical voters

Accepted Answer

A)  support policies that they think will make the poor better off. 
B)  fire bureaucrats who support efficient policies. 
C)  are fully informed. 
D)  are sometimes rationally ignorant about a policy. 
A)  support policies that they think will make the poor better off. 
B)  fire bureaucrats who support efficient policies. 
C)  are fully informed. 
D)  are sometimes rationally ignorant about a policy.

Question 2

What are the two features of a public good?

Accepted Answer

A)  nonrival and excludable 
B)  nonrival and nonexcludable 
C)  rival and excludable 
D)  rival and nonexcludable 
A)  nonrival and excludable 
B)  nonrival and nonexcludable 
C)  rival and excludable 
D)  rival and nonexcludable

Question 3

Which of the following is rival and excludable?

Accepted Answer

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

Question 4

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 $175 a piece to produce, what is the efficient quantity of submarines?

Accepted Answer

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

Question 5

Every year as the clock nears midnight on December 31st, the eyes of the world turn to Times Square in New York City to watch the famous ball drop at midnight. The event is open to everyone, but it is advised you arrive early to be able to participate because the square quickly becomes crowded with no space left for latecomers. This celebration is most like a

Accepted Answer

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

Question 6

-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 marginal benefit for all of Broomfield from hiring the 4th police officer is

Accepted Answer

A)  $56,000. 
B)  $5.60. 
C)  $8,000. 
D)  $6.00. 
A)  $56,000. 
B)  $5.60. 
C)  $8,000. 
D)  $6.00.

Question 7

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

Accepted Answer

A)  public transportation by bus 
B)  clean air 
C)  community swimming pools for which the user must pay a fee 
D)  postal services 
A)  public transportation by bus 
B)  clean air 
C)  community swimming pools for which the user must pay a fee 
D)  postal services

Question 8

A good which is nonrival and nonexcludable is

Accepted Answer

A)  a public good. 
B)  a private good. 
C)  a social good. 
D)  an externality. 
A)  a public good. 
B)  a private good. 
C)  a social good. 
D)  an externality.

Question 9

Rational ignorance about the efficient quantity of a public good can result in

Accepted Answer

A)  the principle of minimum differentiation. 
B)  excludable goods. 
C)  bureaucratic overprovision of a good. 
D)  the vertical summation of individual's marginal benefit curves. 
A)  the principle of minimum differentiation. 
B)  excludable goods. 
C)  bureaucratic overprovision of a good. 
D)  the vertical summation of individual's marginal benefit curves.

Question 10

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. For residents of Long Beach Island, this barrier system would be a

Accepted Answer

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

Question 11

How is the efficient quantity of public goods determined?

Accepted Answer

The efficient quantity of a public good

Question 12

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 $25 a piece to produce, who would vote for the purchase of four submarines?

Accepted Answer

A)  both Katie and Bobby 
B)  Katie only 
C)  Bobby only 
D)  nobody 
A)  both Katie and Bobby 
B)  Katie only 
C)  Bobby only 
D)  nobody

Question 13

Long Beach Island, off the coast of New Jersey, is considering building a system of satellite towers that will enhance communication during emergencies such as hurricanes. The efficient quantity of satellite towers is definitely the quantity of such that the

Accepted Answer

A)  marginal social cost is equal to the marginal social benefit. 
B)  marginal private cost is equal to the marginal social benefit. 
C)  marginal social cost is less than the marginal social benefit. 
D)  marginal private cost is less than the marginal social benefit. 
A)  marginal social cost is equal to the marginal social benefit. 
B)  marginal private cost is equal to the marginal social benefit. 
C)  marginal social cost is less than the marginal social benefit. 
D)  marginal private cost is less than the marginal social benefit.

Question 14

In the political marketplace, firms do all of the following EXCEPT

Accepted Answer

A)  vote. 
B)  pay taxes. 
C)  evaluate policy proposals of politicians. 
D)  benefit from public goods and services. 
A)  vote. 
B)  pay taxes. 
C)  evaluate policy proposals of politicians. 
D)  benefit from public goods and services.

Question 15

-Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. If the marginal social cost of a satellite is $54, the quantity of satellites provided by a competitive market is

Accepted Answer

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

Question 16

When consumption of a good is nonrival and nonexcludable, the good is a

Accepted Answer

A)  public good. 
B)  private good. 
C)  mixed good. 
D)  service. 
A)  public good. 
B)  private good. 
C)  mixed good. 
D)  service.

Question 17

A free-rider problem occurs when the

Accepted Answer

A)  good is excludable. 
B)  good is offered at no charge. 
C)  good is rival. 
D)  good is nonexcludable. 
A)  good is excludable. 
B)  good is offered at no charge. 
C)  good is rival. 
D)  good is nonexcludable.

Question 18

Rational ignorance means

Accepted Answer

A)  ignorance is rationed. 
B)  the benefit from some information is not worth the cost of collecting it. 
C)  some people do not understand rationality. 
D)  the information is unavailable. 
A)  ignorance is rationed. 
B)  the benefit from some information is not worth the cost of collecting it. 
C)  some people do not understand rationality. 
D)  the information is unavailable.

Question 19

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

Accepted Answer

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

Question 20

Free riders are not a problem in the market for a private good because

Accepted Answer

A)  non-payers can be excluded from consuming the good. 
B)  the good is a rival good. 
C)  the good can be produced only at a positive marginal cost. 
D)  the free rider will not get caught. 
A)  non-payers can be excluded from consuming the good. 
B)  the good is a rival good. 
C)  the good can be produced only at a positive marginal cost. 
D)  the free rider will not get caught.

In the political market place, typical voters

What are the two features of a public good?

Which of the following is rival and excludable?

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 $175 a piece to produce, what is the efficient quantity of submarines?

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

A good which is nonrival and nonexcludable is

Rational ignorance about the efficient quantity of a public good can result in

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. For residents of Long Beach Island, this barrier system would be a

How is the efficient quantity of public goods determined?

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 $25 a piece to produce, who would vote for the purchase of four submarines?

Long Beach Island, off the coast of New Jersey, is considering building a system of satellite towers that will enhance communication during emergencies such as hurricanes. The efficient quantity of satellite towers is definitely the quantity of such that the

In the political marketplace, firms do all of the following EXCEPT

-Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. If the marginal social cost of a satellite is $54, the quantity of satellites provided by a competitive market is

When consumption of a good is nonrival and nonexcludable, the good is a

A free-rider problem occurs when the

Rational ignorance means

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

Free riders are not a problem in the market for a private good because

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

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Exam 16: Public Choices, Public Goods, and Healthcare

In the political market place, typical voters

What are the two features of a public good?

Which of the following is rival and excludable?

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 $175 a piece to produce, what is the efficient quantity of submarines?

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

A good which is nonrival and nonexcludable is

Rational ignorance about the efficient quantity of a public good can result in

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. For residents of Long Beach Island, this barrier system would be a

How is the efficient quantity of public goods determined?

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 $25 a piece to produce, who would vote for the purchase of four submarines?

Long Beach Island, off the coast of New Jersey, is considering building a system of satellite towers that will enhance communication during emergencies such as hurricanes. The efficient quantity of satellite towers is definitely the quantity of such that the

In the political marketplace, firms do all of the following EXCEPT

-Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. If the marginal social cost of a satellite is $54, the quantity of satellites provided by a competitive market is

When consumption of a good is nonrival and nonexcludable, the good is a

A free-rider problem occurs when the

Rational ignorance means

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

Free riders are not a problem in the market for a private good because

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