Exam 5: Public Spending and Public Choice

Many nations are consistently accused of enjoying the benefits of membership in the United Nations, yet they provide few or no funds to support the organization. This is an example of

The government might provide a subsidy when

In public education, the value of the services provided is

An external cost, such as the cost generated by pollution, is

If a nation's government determines that consumption of cigarettes should be discouraged, then this means that the government has judged cigarettes to be a(n)

In the United States, which of the following is an example of a government-inhibited good?

What is one result of the Medicare subsidy?

Which event was most important in promoting the belief that the U.S. government should work to ensure economy-wide stability?

A public museum is an example of a

The free-rider problem is

When the production of one good spills benefits over to third parties, the government should consider all of the following EXCEPT

Which of the following terms describes the situation in which too few or too many resources go to a specific economic activity because of external benefits or costs?

A situation in which a benefit or a cost associated with an economic activity spills over to third parties is called

Medicare subsides will cause people to

The distinguishing characteristic of private goods is that

Which of the following leads to an underallocation of resources to a specific economic activity?

-Refer to the above figure. Medicare subsidies have increased the price of medical services to . Which of the following statements is true about the effect the Medicare subsidy has had on the consumption of medical services?

Which of the following might be a method that the government could use to promote the production of a good that generates positive externalities?

The economic functions of government differ from the political functions of government in that

A negative externality is a situation in which