Question 1

Competition between two political parties will cause those parties to propose policies

Accepted Answer

A) that are quite different. 
B) that are quite similar. 
C) of rational ignorance. 
D) that reduce the well-being of middle-income families and increasing the well-being of the rich and the poor. 
E) that equate total costs and total benefits. 
A) that are quite different. 
B) that are quite similar. 
C) of rational ignorance. 
D) that reduce the well-being of middle-income families and increasing the well-being of the rich and the poor. 
E) that equate total costs and total benefits.

Question 2

A public good is

Accepted Answer

A) nonrival and nonexcludable. 
B) produced by monopolies. 
C) rival and excludable. 
D) rival and nonexcludable. 
E) nonrival and excludable. 
A) nonrival and nonexcludable. 
B) produced by monopolies. 
C) rival and excludable. 
D) rival and nonexcludable. 
E) nonrival and excludable.

Question 3

The idea that the platforms of the political parties will tend to become similar over time is

Accepted Answer

A) not a reflection of reality. 
B) true in theory but not true in actuality. 
C) called the principle of minimum differentiation. 
D) called the principle of minimal political confrontation. 
E) the result of intense lobbying pressure. 
A) not a reflection of reality. 
B) true in theory but not true in actuality. 
C) called the principle of minimum differentiation. 
D) called the principle of minimal political confrontation. 
E) the result of intense lobbying pressure.

Question 4

Public choice theory predicts that

Accepted Answer

A) voters are fully informed about the effects of policies. 
B) voters are rationally ignorant. 
C) governments make choices that achieve an efficient provision of public goods. 
D) votes are based on reality, not perceptions. 
E) votes are based on lobbyists' viewpoints. 
A) voters are fully informed about the effects of policies. 
B) voters are rationally ignorant. 
C) governments make choices that achieve an efficient provision of public goods. 
D) votes are based on reality, not perceptions. 
E) votes are based on lobbyists' viewpoints.

Question 5

Which of the following applies to the tragedy of the commons?
I.In the absence of government action,there is an absence of incentives to prevent the overuse of the common resource.
II.When consumers take account of the marginal social benefit and marginal social cost,overuse of the resource occurs.
III.Even with government action,it is impossible for an efficient level of output to be achieved.

Accepted Answer

A) I only 
B) I and II 
C) II and III 
D) I, II and III 
E) none of the above 
A) I only 
B) I and II 
C) II and III 
D) I, II and III 
E) none of the above

Question 6

A common resource is

Accepted Answer

A) regulated and excludable. 
B) rival and nonexcludable. 
C) nonrival and excludable. 
D) rival and excludable. 
E) nonrival and nonexcludable. 
A) regulated and excludable. 
B) rival and nonexcludable. 
C) nonrival and excludable. 
D) rival and excludable. 
E) nonrival and nonexcludable.

Question 7

A natural monopoly is

Accepted Answer

A) nonrival. 
B) excludable. 
C) rival. 
D) nonexcludable. 
E) both A and B. 
A) nonrival. 
B) excludable. 
C) rival. 
D) nonexcludable. 
E) both A and B.

Question 8

For a private good,the economy's marginal social benefit curve is the ________ sum of the individual marginal benefit curves and for a public good,the economy's marginal social benefit curve is the ________ sum of the individual marginal benefit curves.

Accepted Answer

A) vertical;vertical 
B) vertical;horizontal 
C) horizontal;vertical 
D) horizontal;horizontal 
E) horizontal and vertical;vertical and horizontal 
A) vertical;vertical 
B) vertical;horizontal 
C) horizontal;vertical 
D) horizontal;horizontal 
E) horizontal and vertical;vertical and horizontal

Question 9

Use the figure below to answer the following questions.
   
Figure 17.3.1
-Figure 17.3.1 shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for cod,a common resource.The efficient quantity is

Accepted Answer

A) 0 kilograms a week. 
B) 4,000 kilograms a week. 
C) 3,000 kilograms a week. 
D) 5,000 kilograms a week. 
E) 1,000 kilograms a week. 
A) 0 kilograms a week. 
B) 4,000 kilograms a week. 
C) 3,000 kilograms a week. 
D) 5,000 kilograms a week. 
E) 1,000 kilograms a week.

Competition between two political parties will cause those parties to propose policies

A public good is

The idea that the platforms of the political parties will tend to become similar over time is

Public choice theory predicts that

A common resource is

A natural monopoly is

For a private good,the economy's marginal social benefit curve is the sum of the individual marginal benefit curves and for a public good,the economy's marginal social benefit curve is the sum of the individual marginal benefit curves.

Use the figure below to answer the following questions. Figure 17.3.1 -Figure 17.3.1 shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for cod,a common resource.The efficient quantity is

What Is Economics?

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Markets for Factors of Production

Economic Inequality

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: The Keynesian Model

Canadian Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

Exam 17: Public Goods and Common Resources

Competition between two political parties will cause those parties to propose policies

A public good is

The idea that the platforms of the political parties will tend to become similar over time is

Public choice theory predicts that

A common resource is

A natural monopoly is

For a private good,the economy's marginal social benefit curve is the ________ sum of the individual marginal benefit curves and for a public good,the economy's marginal social benefit curve is the ________ sum of the individual marginal benefit curves.

Use the figure below to answer the following questions. Figure 17.3.1 -Figure 17.3.1 shows the marginal private cost curve,marginal social cost curve,and marginal social benefit curve for cod,a common resource.The efficient quantity is

What Is Economics?

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Markets for Factors of Production

Economic Inequality

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers: The Keynesian Model

Canadian Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Filters

For a private good,the economy's marginal social benefit curve is the sum of the individual marginal benefit curves and for a public good,the economy's marginal social benefit curve is the sum of the individual marginal benefit curves.