Question 1

Commodity egalitarianism refers to commodities that

Accepted Answer

A) are good ideas but never produced. 
B) are important for most consumers. 
C) should be made available to all consumers. 
D) are too dangerous for most consumers. 
A) are good ideas but never produced. 
B) are important for most consumers. 
C) should be made available to all consumers. 
D) are too dangerous for most consumers. C

Question 2

A pure public good can become an impure public good.

Accepted Answer

A) True 
B) False 
C) Uncertain 
A) True 
B) False 
C) Uncertain A

Question 3

Equilibrium for public goods is characterized by

Accepted Answer

A) MC = MB. 
B) SMB = SMB. 
C) MRS1 + MRS2 + MRS3 + … + MRSn = MRT. 
D) SMC = MRT. 
A) MC = MB. 
B) SMB = SMB. 
C) MRS1 + MRS2 + MRS3 + … + MRSn = MRT. 
D) SMC = MRT. C

Question 4

Suppose there are two individuals with identical demand curves characterized by the equation P = 2
- Q. What is market demand if these demand curves are added horizontally? Vertically?

Accepted Answer

Horizontal adding yi

Question 5

Choosing between public or private provision of a good always leads to market efficiencies.

Accepted Answer

A) True 
B) False 
C) Uncertain 
A) True 
B) False 
C) Uncertain

Question 6

Summing demand curves horizontally sends market to individuals, while summing vertically sends market to individuals.

Accepted Answer

A) quantity; price 
B) price; price 
C) price; quantity 
D) quantity; quantity 
A) quantity; price 
B) price; price 
C) price; quantity 
D) quantity; quantity

Question 7

Vertical summation of demand curves yields results equivalent to those of horizontal summation.

Accepted Answer

A) True 
B) False 
C) Uncertain 
A) True 
B) False 
C) Uncertain

Question 8

Some people do not engage in free riding, even when there is no cost or chance or reprisal. Discuss why?

Accepted Answer

Answers will vary but many peo

Question 9

Discuss and contrast the advantages and disadvantages of public highways versus toll roads.

Accepted Answer

If only toll roads existed, th

Question 10

Public goods can be

Accepted Answer

A) subject to free rider problems. 
B) provided privately. 
C) provided publicly. 
D) all of these answer options are correct. 
A) subject to free rider problems. 
B) provided privately. 
C) provided publicly. 
D) all of these answer options are correct.

Question 11

From the figures below, the market price of rockets is

Accepted Answer

A) 6. 
B) 4. 
C) 10. 
D) 20. 
A) 6. 
B) 4. 
C) 10. 
D) 20.

Question 12

Suppose you are given the following demand curves: Q = 32 - P and Q = 16 - (P/2). Add these two demand curves vertically and find the market demand curve.

Accepted Answer

The demand curve has two porti

Question 13

There are not many examples of pure public goods. Why?

Accepted Answer

Consumption of an impure public good is

Question 14

Suppose that there are only two fishermen, Zach and Jacob, who fish along a certain coast. They would each benefit if a lighthouse were built along the coast where they fish. The marginal cost of building each additional lighthouse is $150. The marginal benefit to Zach of each additional lighthouse is 90 - Q, and the marginal benefit to Jacob is 40 - Q, where Q equals the number of lighthouses.
What is the efficient number of lighthouses?

Accepted Answer

The cost is too high

Question 15

Impure public goods

Accepted Answer

A) are the same as pure public goods. 
B) are to some extent rival or excludable in consumption. 
C) are nonrival in consumption. 
D) are nonexcludable in consumption. 
A) are the same as pure public goods. 
B) are to some extent rival or excludable in consumption. 
C) are nonrival in consumption. 
D) are nonexcludable in consumption.

Question 16

Most goods that are nonexcludable are pure public goods.

Accepted Answer

A) True 
B) False 
C) Uncertain 
A) True 
B) False 
C) Uncertain

Question 17

When asked to reveal their true preferences people

Accepted Answer

A) always tell the truth. 
B) sometimes tell the truth. 
C) never tell the truth. 
D) generally don't know what preferences are. 
A) always tell the truth. 
B) sometimes tell the truth. 
C) never tell the truth. 
D) generally don't know what preferences are.

Question 18

Increasing distortionary taxes to finance an additional unit of the public good further distorts the allocation of resources in the economy but increases economic efficiency.

Accepted Answer

A) True 
B) False 
C) Uncertain 
A) True 
B) False 
C) Uncertain

Question 19

Recent evidence supports the view that privately-owned firms exhibit lower productivity than government-owned firms.

Accepted Answer

A) True 
B) False 
C) Uncertain 
A) True 
B) False 
C) Uncertain

Question 20

A is a person who wants to enjoy the benefits of a public good without contributing his or her marginal benefit to the cost of financing the amount made.

Accepted Answer

A) free rider 
B) price optimizer 
C) politician 
D) price maker 
A) free rider 
B) price optimizer 
C) politician 
D) price maker

Commodity egalitarianism refers to commodities that

A pure public good can become an impure public good.

Equilibrium for public goods is characterized by

Suppose there are two individuals with identical demand curves characterized by the equation P = 2 - Q. What is market demand if these demand curves are added horizontally? Vertically?

Choosing between public or private provision of a good always leads to market efficiencies.

Summing demand curves horizontally sends market to individuals, while summing vertically sends market to individuals.

Vertical summation of demand curves yields results equivalent to those of horizontal summation.

Some people do not engage in free riding, even when there is no cost or chance or reprisal. Discuss why?

Discuss and contrast the advantages and disadvantages of public highways versus toll roads.

Public goods can be

From the figures below, the market price of rockets is

Suppose you are given the following demand curves: Q = 32 - P and Q = 16 - (P/2). Add these two demand curves vertically and find the market demand curve.

There are not many examples of pure public goods. Why?

Impure public goods

Most goods that are nonexcludable are pure public goods.

When asked to reveal their true preferences people

Increasing distortionary taxes to finance an additional unit of the public good further distorts the allocation of resources in the economy but increases economic efficiency.

Recent evidence supports the view that privately-owned firms exhibit lower productivity than government-owned firms.

A is a person who wants to enjoy the benefits of a public good without contributing his or her marginal benefit to the cost of financing the amount made.

Introduction to Public Finance in Canada

Fundamentals of Welfare Economics

Cost-Benefit Analysis

Externalities

Income Redistribution

Public Choice

Fiscal Federalism

Health Care

Employment Insurance

Public Pensions

Social Welfare Programs

Education

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behaviour

Consumption Taxation

Taxes on Wealth and Property

The Corporation Tax

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Exam 4: Public Goods

Commodity egalitarianism refers to commodities that

A pure public good can become an impure public good.

Equilibrium for public goods is characterized by

Suppose there are two individuals with identical demand curves characterized by the equation P = 2 - Q. What is market demand if these demand curves are added horizontally? Vertically?

Choosing between public or private provision of a good always leads to market efficiencies.

Summing demand curves horizontally sends market to individuals, while summing vertically sends market to individuals.

Vertical summation of demand curves yields results equivalent to those of horizontal summation.

Some people do not engage in free riding, even when there is no cost or chance or reprisal. Discuss why?

Discuss and contrast the advantages and disadvantages of public highways versus toll roads.

Public goods can be

From the figures below, the market price of rockets is

Suppose you are given the following demand curves: Q = 32 - P and Q = 16 - (P/2). Add these two demand curves vertically and find the market demand curve.

There are not many examples of pure public goods. Why?

Impure public goods

Most goods that are nonexcludable are pure public goods.

When asked to reveal their true preferences people

Increasing distortionary taxes to finance an additional unit of the public good further distorts the allocation of resources in the economy but increases economic efficiency.

Recent evidence supports the view that privately-owned firms exhibit lower productivity than government-owned firms.

A is a person who wants to enjoy the benefits of a public good without contributing his or her marginal benefit to the cost of financing the amount made.

Introduction to Public Finance in Canada

Fundamentals of Welfare Economics

Cost-Benefit Analysis

Externalities

Income Redistribution

Public Choice

Fiscal Federalism

Health Care

Employment Insurance

Public Pensions

Social Welfare Programs

Education

Taxation and Income Distribution

Taxation and Efficiency

Efficient and Equitable Taxation

The Personal Income Tax

Personal Taxation and Behaviour

Consumption Taxation

Taxes on Wealth and Property

The Corporation Tax

Filters