Exam 16: Public Choices and Public Goods

Katie Bobby -The above table shows the marginal benefit from submarines for the only two citizens of a country. Suppose submarines cost $175 a piece. Politician A proposes 2 submarines while politician B proposes 4. Assuming that both Bobby and Katie pay one half of the resulting taxes and neither is rationally ignorant, which politician will win the election?

In 2010, the Center for Disease Control has recommended that every child between the ages of 6 months and 18 years be vaccinated, except those with a serious egg allergy. Dr. Berreman states,"By protecting ourselves from flu, we also protect our families and neighbors." Which is a solution that could be used to achieve a more efficient allocation of resources in the presence of this externality?

-The table above shows the marginal costs and marginal benefits of college education. With public provision of the efficient amount of college education, the cost paid by the taxpayers is

Free riding

In the political market place, typical voters

A voucher can eliminate the deadweight loss and lead to an efficient outcome if the value of the voucher equals the ________ of the good.

Nonrivalry is a feature of

Education in the United States is heavily subsidized by the government. This fact suggest that I. less than the efficient amount of education would be provided by an unregulated market. II) the marginal social benefit of education is greater than marginal social cost of education.

Because of the free-rider problem, ________.

Public universities, by charging tuition ________ the marginal cost of education, ________ the number of students.

If a local fishing club spends time each year cleaning up local streams by removing trash thrown by motorists, efficiency would be improved if

If the consumption of a good or service by one person does not decrease the quantity available for another person, the good or service is

-The figure above shows the marginal social costs (MSC), marginal private benefits (MB), and marginal social benefits (MSB) of college education in Inland. If Inland's government does not intervene, and the colleges are competitive, the deadweight loss is

Which of the following would most likely be provided by a natural monopoly?

If an activity has an external benefit, such as education, a tax on that activity can lead to the efficient level of output being produced.

"The principle of increasing marginal cost does not apply to public goods." Is this statement correct or not?

Which of the following is the BEST example of a public good?

-The above figure shows the marginal benefit and marginal cost curves for a public good. The efficient quantity is

-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. What is the efficient amount of education?

Which of the following is the BEST example of a common resource?