Question 1

When asked to reveal their true preferences people

Accepted Answer

A)  always tell the truth. 
B)  never tell the truth. 
C)  sometimes tell the truth. 
D)  generally don't know what preferences are. 
A)  always tell the truth. 
B)  never tell the truth. 
C)  sometimes tell the truth. 
D)  generally don't know what preferences are.

Question 2

From the figures below,the market price of rockets is

Accepted Answer

A)  10. 
B)  4. 
C)  6. 
D)  20. 
A)  10. 
B)  4. 
C)  6. 
D)  20.

Question 3

Discuss and contrast the advantages and disadvantages of public highways versus toll roads.

Accepted Answer

There would be less uniformity

Question 4

A pure private good is

Accepted Answer

A)  nonrival in consumption and subject to exclusion. 
B)  rival in consumption and subject to exclusion. 
C)  rival in consumption and not subject to exclusion. 
D)  all of these answer options are correct. 
A)  nonrival in consumption and subject to exclusion. 
B)  rival in consumption and subject to exclusion. 
C)  rival in consumption and not subject to exclusion. 
D)  all of these answer options are correct.

Question 5

Equilibrium for public goods is characterized by

Accepted Answer

A)  MSB = MSB. 
B)  SMRS = MRT. 
C)  MRS1 = MRS2 = MRS3 = … = MRSn = MRT. 
D)  MC = MB. 
E)  MRS - MRT = MSB. 
A)  MSB = MSB. 
B)  SMRS = MRT. 
C)  MRS1 = MRS2 = MRS3 = … = MRSn = MRT. 
D)  MC = MB. 
E)  MRS - MRT = MSB.

Question 6

Impure public goods

Accepted Answer

A)  are nonrival in consumption. 
B)  cannot be priced in the market. 
C)  are rival in consumption. 
D)  are never provided by the private sector. 
A)  are nonrival in consumption. 
B)  cannot be priced in the market. 
C)  are rival in consumption. 
D)  are never provided by the private sector.

Question 7

A private good is

Accepted Answer

A)  nonrival in consumption. 
B)  subject to free rider problems. 
C)  not subject to exclusion. 
D)  subject to exclusion. 
A)  nonrival in consumption. 
B)  subject to free rider problems. 
C)  not subject to exclusion. 
D)  subject to exclusion.

Question 8

Some people do not engage in free riding,even when there is no cost or chance or reprisal.Discuss why?

Accepted Answer

Answers will vary but many peo

Question 9

You have read that the free rider problem affects equilibrium in a public good context.Explain how this situation can be modeled as a prisoner's dilemma game.

Accepted Answer

Each individual will say before construc

Question 10

Demand curves for pure public goods satisfy the law of demand.

Accepted Answer

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

Question 11

Suppose there are two individuals with identical demand curves characterized by the equation P = 2 - Q.What is market demand if these demand curves are added horizontally? Vertically?

Accepted Answer

Horizontal adding yi

Question 12

Commodity egalitarianism refers to commodities that

Accepted Answer

A)  are important for most consumers. 
B)  are too dangerous for most consumers. 
C)  should be made available to all consumers. 
D)  are good ideas but never produced. 
A)  are important for most consumers. 
B)  are too dangerous for most consumers. 
C)  should be made available to all consumers. 
D)  are good ideas but never produced.

Question 13

Suppose there is a public good that has market supply characterized by the equation X = (P/3)- (32/3).Suppose further that market demand for this good can be characterized by the equation X = 25 - P.Find the equilibrium quantity of the public good that will be supplied.

Accepted Answer

The two curves never intersect

Question 14

When those that do not contribute to the costs of a public good are denied use,this is a case of

Accepted Answer

A)  exclusion. 
B)  being nonrival. 
C)  price discrimination. 
D)  infeasibility. 
A)  exclusion. 
B)  being nonrival. 
C)  price discrimination. 
D)  infeasibility.

Question 15

Suppose that there are only two fishermen,Zach and Jacob,who fish along a certain coast.They would each benefit if a lighthouse were built along the coast where they fish.The marginal cost of building each additional lighthouse is $150.The marginal benefit to Zach of each additional lighthouse is 90 - Q,and the marginal benefit to Jacob is 40 - Q,where Q equals the number of lighthouses.
What is the efficient number of lighthouses?

Accepted Answer

The cost is too high

When asked to reveal their true preferences people

From the figures below,the market price of rockets is

Discuss and contrast the advantages and disadvantages of public highways versus toll roads.

A pure private good is

Equilibrium for public goods is characterized by

Impure public goods

A private good is

Some people do not engage in free riding,even when there is no cost or chance or reprisal.Discuss why?

You have read that the free rider problem affects equilibrium in a public good context.Explain how this situation can be modeled as a prisoner's dilemma game.

Demand curves for pure public goods satisfy the law of demand.

Suppose there are two individuals with identical demand curves characterized by the equation P = 2 - Q.What is market demand if these demand curves are added horizontally? Vertically?

Commodity egalitarianism refers to commodities that

Suppose there is a public good that has market supply characterized by the equation X = (P/3)- (32/3).Suppose further that market demand for this good can be characterized by the equation X = 25 - P.Find the equilibrium quantity of the public good that will be supplied.

When those that do not contribute to the costs of a public good are denied use,this is a case of

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Income Redistribution: Conceptual Issues

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Exam 4: Public Goods

When asked to reveal their true preferences people

From the figures below,the market price of rockets is

Discuss and contrast the advantages and disadvantages of public highways versus toll roads.

A pure private good is

Equilibrium for public goods is characterized by

Impure public goods

A private good is

Some people do not engage in free riding,even when there is no cost or chance or reprisal.Discuss why?

You have read that the free rider problem affects equilibrium in a public good context.Explain how this situation can be modeled as a prisoner's dilemma game.

Demand curves for pure public goods satisfy the law of demand.

Suppose there are two individuals with identical demand curves characterized by the equation P = 2 - Q.What is market demand if these demand curves are added horizontally? Vertically?

Commodity egalitarianism refers to commodities that

Suppose there is a public good that has market supply characterized by the equation X = (P/3)- (32/3).Suppose further that market demand for this good can be characterized by the equation X = 25 - P.Find the equilibrium quantity of the public good that will be supplied.

When those that do not contribute to the costs of a public good are denied use,this is a case of

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