Question 1

The efficient quantity of a pure public good occurs when the marginal cost of producing that good equals the

Accepted Answer

A) marginal benefit to the median voter. 
B) marginal benefit to each individual. 
C) sum of all individual marginal benefits. 
D) sum of all individual marginal benefits divided by the number of voters. 
A) marginal benefit to the median voter. 
B) marginal benefit to each individual. 
C) sum of all individual marginal benefits. 
D) sum of all individual marginal benefits divided by the number of voters.

Question 2

-The above figure shows the market for steel ingots.What is the total surplus under social optimum?

Accepted Answer

A) $2500 
B) $5000 
C) $6500 
D) Not enough information. 
A) $2500 
B) $5000 
C) $6500 
D) Not enough information.

Question 3

The efficient quantity of a public good occurs when the marginal cost of providing that good equals the sum of the marginal benefits to all individuals.

Accepted Answer

A) True 
 B)False

Question 4

Suppose three neighbors must vote on the installation of a traffic light that costs $210.The cost of the light will be shared by all three.Voter A values the light at $50;voter B values the light at $50;and voter C (who drives the most)values the light at $200.If the voting rule is that the majority wins,does the light get purchased? Is it efficient to purchase the light?

Accepted Answer

The cost of the light to each

Question 5

A specific tax in a monopoly market equal to the marginal harm of pollution

Accepted Answer

A) will increase welfare. 
B) will decrease welfare. 
C) will leave welfare unchanged. 
D) All of the above are possible. 
A) will increase welfare. 
B) will decrease welfare. 
C) will leave welfare unchanged. 
D) All of the above are possible.

The efficient quantity of a pure public good occurs when the marginal cost of producing that good equals the

-The above figure shows the market for steel ingots.What is the total surplus under social optimum?

The efficient quantity of a public good occurs when the marginal cost of providing that good equals the sum of the marginal benefits to all individuals.

A specific tax in a monopoly market equal to the marginal harm of pollution

Introduction

Supply and Demand

A Consumers Constrained Choice

Demand

Consumer Welfare and Policy Analysis

Firms and Production

Costs

Competitive Firms and Markets

Properties and Applications of the Competitive Model

General Equilibrium and Economic Welfare

Monopoly and Monopsony

Pricing and Advertising

Game Theory

Oligopoly and Monopolistic Competition

Factor Markets

Uncertainty

Asymmetric Information

Contracts and Moral Hazards

Filters

Exam 17: Property Rights, Externalities, Rivalry, and Exclusion

The efficient quantity of a pure public good occurs when the marginal cost of producing that good equals the

-The above figure shows the market for steel ingots.What is the total surplus under social optimum?

The efficient quantity of a public good occurs when the marginal cost of providing that good equals the sum of the marginal benefits to all individuals.

A specific tax in a monopoly market equal to the marginal harm of pollution

Introduction

Supply and Demand

A Consumers Constrained Choice

Demand

Consumer Welfare and Policy Analysis

Firms and Production

Costs

Competitive Firms and Markets

Properties and Applications of the Competitive Model

General Equilibrium and Economic Welfare

Monopoly and Monopsony

Pricing and Advertising

Game Theory

Oligopoly and Monopolistic Competition

Factor Markets

Uncertainty

Asymmetric Information

Contracts and Moral Hazards

Filters