Exam 35: Public Goods-Part B

Just north of the town of Muskrat, Ontario, is the town of Brass Monkey, population 800.Brass Monkey, like Muskrat, has a single public good, the town skating rink and a single private good, Labatt Ale.Everyone's utility function is U_i(X_i, Y)= X_i - 121/Y, where X_i is the number of bottles of ale consumed by i and Y is the size of the skating rink in square meters.The price of ale is $1 per bottle.The cost of the skating rink to the city is $8 per square meter.Everyone has an income of at least $5,000.What is the Pareto efficient size for the town skating rink?

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Question 1

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Just north of the town of Muskrat, Ontario, is the town of Brass Monkey, population 4,500.Brass Monkey, like Muskrat, has a single public good, the town skating rink and a single private good, Labatt Ale.Everyone's utility function is U_i(X_i, Y)= X_i - 81/Y, where X_i is the number of bottles of ale consumed by i and Y is the size of the skating rink in square meters.The price of ale is $1 per bottle.The cost of the skating rink to the city is $5 per square meter.Everyone has an income of at least $5,000.What is the Pareto efficient size for the town skating rink?

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Question 2

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Lucy's utility function is 2X_L + G and Melvin's utility function is X_MG, where G is their expenditures on the public goods they share in their apartment and where X_L and X_M are their respective private consumption expenditures.The total amount they have to spend on private goods and public goods is $33,000.They agree on a Pareto optimal pattern of expenditures in which the amount that is spent on Lucy's private consumption is $9,000.How much do they spend on public goods?

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Question 3

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Just north of the town of Muskrat, Ontario, is the town of Brass Monkey, population 700.Brass Monkey, like Muskrat, has a single public good, the town skating rink and a single private good, Labatt Ale.Everyone's utility function is U_i(X_i, Y)= X_i - 121/Y, where X_i is the number of bottles of ale consumed by i and Y is the size of the skating rink in square meters.The price of ale is $1 per bottle.The cost of the skating rink to the city is $7 per square meter.Everyone has an income of at least $5,000.What is the Pareto efficient size for the town skating rink?

(Multiple Choice)

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Question 4

Lucy's utility function is 2X_L + G and Melvin's utility function is X_MG, where G is their expenditures on the public goods they share in their apartment and where X_L and X_M are their respective private consumption expenditures.The total amount they have to spend on private goods and public goods is $39,000.They agree on a Pareto optimal pattern of expenditures in which the amount that is spent on Lucy's private consumption is $9,000.How much do they spend on public goods?

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Question 5

They are thinking of buying a sofa.Bob's utility function is U_B(S, M_B)= (1 + S)M_B and Ray's utility function is U_R(S, M_R)= (3 + S)M_R, where S = 0 if they don't get the sofa and S = 1 if they do and where M_B and M_R are the amounts of money they have respectively to spend on their private consumptions.Bob has a total of $1,200 to spend on the sofa and other stuff.Ray has a total of $4,000 to spend on the sofa and other stuff.The maximum amount that they could pay for the sofa and still arrange to both be better off than without it is

(Multiple Choice)

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Question 6

Just north of the town of Muskrat, Ontario, is the town of Brass Monkey, population 700.Brass Monkey, like Muskrat, has a single public good, the town skating rink and a single private good, Labatt Ale.Everyone's utility function is U_i(X_i, Y)= X_i - 144/Y, where X_i is the number of bottles of ale consumed by i and Y is the size of the skating rink in square meters.The price of ale is $1 per bottle.The cost of the skating rink to the city is $7 per square meter.Everyone has an income of at least $5,000.What is the Pareto efficient size for the town skating rink?

(Multiple Choice)

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Question 7

They are thinking of buying a sofa.Bob's utility function is U_B(S, M_B)= (1 + S)M_B and Ray's utility function is U_R(S, M_R)= (2 + S)M_R, where S = 0 if they don't get the sofa and S = 1 if they do and where M_B and M_R are the amounts of money they have respectively to spend on their private consumptions.Bob has a total of $1,200 to spend on the sofa and other stuff.Ray has a total of $1,200 to spend on the sofa and other stuff.The maximum amount that they could pay for the sofa and still arrange to both be better off than without it is

(Multiple Choice)

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Question 8

Just north of the town of Muskrat, Ontario,is the town of Brass Monkey, population 12,800.Brass Monkey, like Muskrat, has a single public good, the town skating rink and a single private good, Labatt Ale.Everyone's utility function is U_i(X_i, Y)= X_i - 121/Y, where X_i is the number of bottles of ale consumed by i and Y is the size of the skating rink in square meters.The price of ale is $1 per bottle.The cost of the skating rink to the city is $8 per square meter.Everyone has an income of at least $5,000.What is the Pareto efficient size for the town skating rink?

(Multiple Choice)

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Question 9

They are thinking of buying a sofa.Bob's utility function is U_B(S, M_B)= (1 + S)M_B and Ray's utility function is U_R(S, M_R)= (3 + S)M_R, where S = 0 if they don't get the sofa and S = 1 if they do and where M_B and M_R are the amounts of money they have respectively to spend on their private consumptions.Bob has a total of $2,000 to spend on the sofa and other stuff.Ray has a total of $1,600 to spend on the sofa and other stuff.The maximum amount that they could pay for the sofa and still arrange to both be better off than without it is

(Multiple Choice)

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Question 10

Lucy's utility function is 2X_L + G and Melvin's utility function is X_MG, where G is their expenditures on the public goods they share in their apartment and where X_L and X_M are their respective private consumption expenditures.The total amount they have to spend on private goods and public goods is $24,000.They agree on a Pareto optimal pattern of expenditures in which the amount that is spent on Lucy's private consumption is $6,000.How much do they spend on public goods?

(Multiple Choice)

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Question 11

They are thinking of buying a sofa.Bob's utility function is U_B(S, M_B)= (1 + S)M_B and Ray's utility function is U_R(S, M_R)= (4 + S)M_R, where S = 0 if they don't get the sofa and S = 1 if they do and where M_B and M_R are the amounts of money they have respectively to spend on their private consumptions.Bob has a total of $800 to spend on the sofa and other stuff.Ray has a total of $4,000 to spend on the sofa and other stuff.The maximum amount that they could pay for the sofa and still arrange to both be better off than without it is

(Multiple Choice)

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Question 12

They are thinking of buying a sofa.Bob's utility function is U_B(S, M_B)= (1 + S)M_B and Ray's utility function is U_R(S, M_R)= (2 + S)M_R, where S = 0 if they don't get the sofa and S = 1 if they do and where M_B and M_R are the amounts of money they have respectively to spend on their private consumptions.Bob has a total of $2,000 to spend on the sofa and other stuff.Ray has a total of $3,000 to spend on the sofa and other stuff.The maximum amount that they could pay for the sofa and still arrange to both be better off than without it is

(Multiple Choice)

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Question 13

Lucy's utility function is 2X_L + G and Melvin's utility function is X_MG, where G is their expenditures on the public goods they share in their apartment and where X_L and X_M are their respective private consumption expenditures.The total amount they have to spend on private goods and public goods is $21,000.They agree on a Pareto optimal pattern of expenditures in which the amount that is spent on Lucy's private consumption is $6,000.How much do they spend on public goods?

(Multiple Choice)

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Question 14

Lucy's utility function is 2X_L + G and Melvin's utility function is X_MG, where G is their expenditures on the public goods they share in their apartment and where X_L and X_M are their respective private consumption expenditures.The total amount they have to spend on private goods and public goods is $24,000.They agree on a Pareto optimal pattern of expenditures in which the amount that is spent on Lucy's private consumption is $9,000.How much do they spend on public goods?

(Multiple Choice)

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Question 15

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Exam 35: Public Goods-Part B

Budget Constraint-Part A

Budget Constraint-Part B

Preferences-Part A

Preferences-Part B

Utility-Part A

Utility-Part B

Choice-Part A

Choice-Part B

Demand-Part A

Demand-Part B

Revealed Preference-Part A

Revealed Preference-Part B

Slutsky Equation-Part A

Slutsky Equation-Part B

Buying and Selling-Part A

Buying and Selling-Part B

Intertemporal Choice-Part A

Intertemporal Choice-Part B

Asset Markets-Part A

Asset Markets-Part B

Uncertainty-Part A

Uncertainty-Part B

Risky Assets-Part A

Risky Assets-Part B

Consumers Surplus-Part A

Consumers Surplus-Part B

Market Demand-Part A

Market Demand-Part B

Equilibrium-Part A

Equilibrium-Part B

Auctions-Part A

Auctions-Part B

Technology-Part A

Technology-Part B

Profit Maximization-Part A

Profit Maximization-Part B

Cost Minimization-Part A

Cost Minimization-Part B

Cost Curves-Part A

Cost Curves-Part B

Firm Supply-Part A

Firm Supply-Part B

Industry Supply-Part A

Industry Supply-Part B

Monopoly-Part A

Monopoly-Part B

Monopoly Behavior-Part A

Monopoly Behavior-Part B

Factor Markets-Part A

Factor Markets-Part B

Oligopoly-Part A

Oligopoly-Part B

Game Theory-Part A

Game Theory-Part B

Game Applications-Part A

Game Applications-Part B

Behavioral Economics

Exchange-Part A

Exchange-Part B

Production-Part A

Production-Part B

Welfare-Part A

Welfare-Part B

Externalities-Part A

Externalities-Part B

Information Technology-Part A

Information Technology-Part B

Public Goods-Part A

Asymmetric Information-Part A

Asymmetric Information-Part B

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