Exam 16: Public Choices and Public Goods

-Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. What is the marginal benefit to society from the fourth satellite?

The benefit from an additional unit of a good or service that the consumer of that good or service receives is the

Free riding is not a problem in the market for a private good because

What is rational ignorance?

-In the above table, if the market is perfectly competitive and unregulated, at the equilibrium output level,

Vouchers create the efficient outcome only if production is such that the marginal social cost

Goods that are nonrival and nonexcludable are called

The free-rider problem is the absence of an incentive for

Public goods create a free-rider problem because the quantity of the good that a person consumes ________ for that good.

-The above figure shows the marginal benefits and marginal costs of a college education. If no subsidies are paid, enrollment equals

The efficient quantity of a public good is provided when the economy's

In the political marketplace, voters do all of the following EXCEPT

Some resources are private and others are common. Define a common resource, explain the definition, and provide an example of a private resource and a common resource.

-The table above shows the marginal costs and marginal benefits of college education. If 8 million students are enrolled, the marginal external benefit is

Katie Bobby -The above table shows the marginal benefit from submarines for the only two citizens of a country. Submarines are a public good. If submarines cost $300 a piece, what is the efficient quantity to produce?

-The above figure shows the marginal benefits and marginal costs of a college education. What is the amount of the external benefit in the figure?

-The table above provides information about the marginal private benefit for education. The marginal private cost, which also equals the marginal social cost, of educating a student is $16,000 per year and does not change as more students are educated. There is an external benefit from education that is equal to $12,000 per student year and does not change as more students are educated. If the government subsidizes education, how much should the subsidy be in order to attain the efficient level of enrollment?

A common resource is nonrival but excludable.

School vouchers can be used to arrive at the efficient market equilibrium because vouchers

When describing goods and services, what is meant by the terms "rival" and "nonrival?" Are private goods rival or nonrival? Are public goods rival or nonrival? Are common resources rival or nonrival?