Question 1

"Contracting out" is an approach through which government:

Accepted Answer

A)  is responsible for public goods,but hires private-sector firms to produce them. 
B)  mandates that individuals pay for public goods through the private sector instead of using tax dollars to finance their provision. 
C)  holds private business firms financially responsible for the provision of public goods. 
D)  is responsible for private goods but uses taxpayer money to produce them. 
A)  is responsible for public goods,but hires private-sector firms to produce them. 
B)  mandates that individuals pay for public goods through the private sector instead of using tax dollars to finance their provision. 
C)  holds private business firms financially responsible for the provision of public goods. 
D)  is responsible for private goods but uses taxpayer money to produce them.

Question 2

Which refers to the idea that even if individuals are willing to tell government how much they are willing to pay for a public good,they may not have an idea of what that is?

Accepted Answer

A)  preference revelation 
B)  preference aggregation 
C)  preference knowledge 
D)  warm-glow effect 
A)  preference revelation 
B)  preference aggregation 
C)  preference knowledge 
D)  warm-glow effect

Question 3

A painting by Monet is:

Accepted Answer

A)  excludable but not rival. 
B)  rival but not excludable. 
C)  both rival and excludable. 
D)  neither rival nor excludable. 
A)  excludable but not rival. 
B)  rival but not excludable. 
C)  both rival and excludable. 
D)  neither rival nor excludable.

Question 4

The outcome in which each actor is pursuing his or her optimal strategy,given the strategy of the other actors,is:

Accepted Answer

A)  the altruistic equilibrium. 
B)  the Nash equilibrium. 
C)  the general equilibrium. 
D)  the dominant strategy. 
A)  the altruistic equilibrium. 
B)  the Nash equilibrium. 
C)  the general equilibrium. 
D)  the dominant strategy.

Question 5

Which of the following is TRUE when there is optimal provision of a public good?

Accepted Answer

A)  marginal cost equals marginal rate of substitution for each consumer 
B)  each consumer's surplus equals marginal cost 
C)  total consumer surplus equals marginal cost 
D)  the sum of all consumers' marginal rates of substitution equals marginal cost 
A)  marginal cost equals marginal rate of substitution for each consumer 
B)  each consumer's surplus equals marginal cost 
C)  total consumer surplus equals marginal cost 
D)  the sum of all consumers' marginal rates of substitution equals marginal cost

"Contracting out" is an approach through which government:

Which refers to the idea that even if individuals are willing to tell government how much they are willing to pay for a public good,they may not have an idea of what that is?

A painting by Monet is:

The outcome in which each actor is pursuing his or her optimal strategy,given the strategy of the other actors,is:

Which of the following is TRUE when there is optimal provision of a public good?

Why Study Public Finance

Theoretical Tools of Public Finance

Empirical Tools of Public Finance

Budget Analysis and Deficit Financing

Externalities- Problems and Solutions

Externalities in Action- Environmental and Health Externalities

Cost-Benefit Analysis

Political Economy

State and Local Government Expenditures

Education

Social Insurance- the New Function of Government

Social Security

Unemployment Insurance, disability Insurance, and Workers Compensation

Health Insurance I- Health Economics and Private Health Insurance

Health Insurance Ii- Medicare, medicaid, and Health Care Reform

Income Distribution and Welfare Programs

Taxation- How It Works and What It Means

The Equity Implications of Taxation- Tax Incidence

Taxes on Labor Supply

Taxes on Savings

Taxes on Risk Taking and Wealth

Taxation of Business Income

Fundamental Tax Reform and Consumption Tax

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Exam 7: Public Goods

"Contracting out" is an approach through which government:

Which refers to the idea that even if individuals are willing to tell government how much they are willing to pay for a public good,they may not have an idea of what that is?

A painting by Monet is:

The outcome in which each actor is pursuing his or her optimal strategy,given the strategy of the other actors,is:

Which of the following is TRUE when there is optimal provision of a public good?

Why Study Public Finance

Theoretical Tools of Public Finance

Empirical Tools of Public Finance

Budget Analysis and Deficit Financing

Externalities- Problems and Solutions

Externalities in Action- Environmental and Health Externalities

Cost-Benefit Analysis

Political Economy

State and Local Government Expenditures

Education

Social Insurance- the New Function of Government

Social Security

Unemployment Insurance, disability Insurance, and Workers Compensation

Health Insurance I- Health Economics and Private Health Insurance

Health Insurance Ii- Medicare, medicaid, and Health Care Reform

Income Distribution and Welfare Programs

Taxation- How It Works and What It Means

The Equity Implications of Taxation- Tax Incidence

Taxes on Labor Supply

Taxes on Savings

Taxes on Risk Taking and Wealth

Taxation of Business Income

Fundamental Tax Reform and Consumption Tax

Filters