Exam 8: Public Choices and Public Goods

Public goods are those for which

Governments exist to

-In the above figure, if a subsidy is granted that generates an efficient allocation of resources, then the output level will be

For a public good, the marginal social benefit curve is the _______ summation of all the individual marginal benefit curves. For a private good, the marginal social benefit curve is the _______ summation of all the individual marginal benefit curves.

A public good is _______ and _______.

The marginal private benefit of education is

-From the figure above showing the market for vaccinations, we can infer that there is an

For a good to be nonrival, then

When the marginal social benefit of Good A is greater than the marginal private benefit of Good A, then

If a good has an external benefit, efficiency can be achieved by

-In the above figure, the unregulated, competitive market equilibrium is tuition of _______ and the equilibrium quantity is _______ students in university.

A good or service or a resource is nonexcludable if

A free- rider problem exists if

A government subsidy for a good

If the consumption of a good decreases the quantity available for another person, the good is

-The figure above shows the marginal social costs (MSC), marginal private benefits (MB), and marginal social benefits (MSB) of university education in Inland. Suppose Inland's government is considering subsidising private universities to ensure the efficient level of enrolment. What should be the amount of the subsidy (if any)?

-The table above shows the marginal costs and marginal benefits of university education. The marginal social benefit of university education at the efficient level of enrolment is

-In the above figure, to achieve efficiency the government should

A cost that arises from the production of a good that is paid by someone who did not participate in the production is called

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