Question 1

The MRT is

Accepted Answer

A)  the marginal ring tone. 
B)  the minimal rate of time. 
C)  the maximum rate of transformation. 
D)  none of these answer options are correct. 
A)  the marginal ring tone. 
B)  the minimal rate of time. 
C)  the maximum rate of transformation. 
D)  none of these answer options are correct. D

Question 2

The Global Positioning System (GPS)is an example of a good that is both non-rival and excludable good.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain A

Question 3

Pure private goods are nonrival in consumption.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain A

Question 4

Which of the following is a public good?

Accepted Answer

A)  public defense 
B)  public television 
C)  a library 
D)  schools 
E)  all of these answer options are correct. 
A)  public defense 
B)  public television 
C)  a library 
D)  schools 
E)  all of these answer options are correct.

Question 5

The free rider problem causes less than optimal production of a public good.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 6

Use the answer you found when adding market demand curves vertically in Question 18 above to find the market equilibrium quantity if the market supply is constant at 4 units.

Accepted Answer

Q* = 2 - 1

Question 7

A ________ is a person who wants to enjoy the benefits of a public good without contributing his or her marginal benefit to the cost of financing the amount made.

Accepted Answer

A)  free rider 
B)  politician 
C)  price maker 
D)  price optimizer 
A)  free rider 
B)  politician 
C)  price maker 
D)  price optimizer

Question 8

Private goods are always provided by the private sector.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 9

Vertical summation of demand curves yield results equivalent to those of horizontal summation.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 10

Most goods that are nonexcludable are pure public goods.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 11

Suppose you are given the following demand curves: Q = 32 - P and Q = 16 - (P/2).Add these two demand curves vertically and find the market demand curve.

Accepted Answer

The demand curve has two porti

Question 12

Market mechanisms are unlikely to provide

Accepted Answer

A)  prices. 
B)  nonrival goods efficiently. 
C)  supply and demand. 
D)  none of these answer options are correct. 
A)  prices. 
B)  nonrival goods efficiently. 
C)  supply and demand. 
D)  none of these answer options are correct.

Question 13

Airport security is best provided by public entities over private.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 14

Choosing between public or private provision of a good always lead to market efficiencies.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 15

Increasing the quantity of a pure public good can be done at zero cost.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 16

Charging individual prices that are based on consumers' willingness to pay is

Accepted Answer

A)  government price supports. 
B)  will pricing. 
C)  second tier pricing. 
D)  price discrimination. 
A)  government price supports. 
B)  will pricing. 
C)  second tier pricing. 
D)  price discrimination.

Question 17

Summing demand curves horizontally sends market ______________ to individuals,while summing vertically sends market ______________ to individuals.

Accepted Answer

A)  price; price 
B)  quantity; quantity 
C)  quantity; price 
D)  price; quantity 
A)  price; price 
B)  quantity; quantity 
C)  quantity; price 
D)  price; quantity

Question 18

Public goods can be

Accepted Answer

A)  provided privately. 
B)  provided publicly. 
C)  subject to free rider problems. 
D)  all of these answer options are correct. 
A)  provided privately. 
B)  provided publicly. 
C)  subject to free rider problems. 
D)  all of these answer options are correct.

Question 19

Equilibrium in the market is where supply is equal to demand.

Accepted Answer

A)  True 
B)  False 
C)  Uncertain 
A)  True 
B)  False 
C)  Uncertain

Question 20

Public goods are characterized by

Accepted Answer

A)  nonrivalness. 
B)  excludability. 
C)  the sum of the MRSs equaling MRT. 
D)  all of these answer options are correct. 
A)  nonrivalness. 
B)  excludability. 
C)  the sum of the MRSs equaling MRT. 
D)  all of these answer options are correct.

Exam 4: Public Goods

The MRT is

The Global Positioning System (GPS)is an example of a good that is both non-rival and excludable good.

Pure private goods are nonrival in consumption.

Which of the following is a public good?

The free rider problem causes less than optimal production of a public good.

Use the answer you found when adding market demand curves vertically in Question 18 above to find the market equilibrium quantity if the market supply is constant at 4 units.

A ________ is a person who wants to enjoy the benefits of a public good without contributing his or her marginal benefit to the cost of financing the amount made.

Private goods are always provided by the private sector.

Vertical summation of demand curves yield results equivalent to those of horizontal summation.

Most goods that are nonexcludable are pure public goods.

Suppose you are given the following demand curves: Q = 32 - P and Q = 16 - (P/2).Add these two demand curves vertically and find the market demand curve.

Market mechanisms are unlikely to provide

Airport security is best provided by public entities over private.

Choosing between public or private provision of a good always lead to market efficiencies.

Increasing the quantity of a pure public good can be done at zero cost.

Charging individual prices that are based on consumers' willingness to pay is

Summing demand curves horizontally sends market ______________ to individuals,while summing vertically sends market ______________ to individuals.

Public goods can be

Equilibrium in the market is where supply is equal to demand.

Public goods are characterized by

Introduction

Tools of Positive Analysis

Tools of Normative Analysis

Externalities

Political Economy

Education

Cost-Benefit Analysis

The Health Care Market

Government and the Market for Health Care

Social Security

Income Redistribution: Conceptual Issues

Expenditure Programs for the Poor

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behavior

The Corporation Tax

Deficit Finance

Fundamental Tax Reform: Taxes on Consumption and Wealth

Public Finance in a Federal System

Filters

Summing demand curves horizontally sends market to individuals,while summing vertically sends market to individuals.