Exam 8: Public Choices and Public Goods

-The table above shows the marginal costs and marginal benefits of university education. If the market for university education is perfectly competitive and unregulated, at the equilibrium quantity, the marginal external benefit is

Marginal benefit received by people other than the consumer

When external benefits are present,

-In the above figure, the competitive unregulated equilibrium is producing and consuming _______ Vaccinations per year at a price of _______.

The benefit from an additional unit of a good or service that people other than the consumer of that good or service receives is the

-Suppose two individuals, Pooh and Piglet, desire protection (provided by Tigger) for their community, The Hundred Acre Wood, from heffalumps. Protection is a public good. The marginal cost of protection as well as Piglet's and Pooh's marginal benefits from protection are in the table above. What is the quantity of protection that achieves the maximum net benefit?

The figure above shows the supply curve (S) and the demand curve (D) for university education. The external benefit from university education is $6,000 per student per year and is constant. -In the figure above, with no government involvement and if the universities are competitive, what is the deadweight loss?

An uncrowded toll road is _______ because it is _______.

-The above figure shows the marginal benefit and marginal cost curves for a public good. The quantity that has the BEST prospect of winning in an election by well- informed voters is

Food is an example of a _______ good.

If the marginal social benefit of a good equals the marginal private benefit of the good, then the marginal external benefit of the good

Free riding

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

If it possible to prevent a person from enjoying the benefits of a good unless the person pays for the good, the good is

-Mike, Joe, and Sam are roommates. They need lamps for their common living room. Lamps in their living room are a public good for these roommates. The marginal benefit that each individual receives from varying numbers of lamps in the living room is given in the table above. If the marginal cost of a lamp is 9, what is the efficient number of lamps for the roommates to purchase?

An externality can be a

-Tom and Jerry are the only members of society. The table above shows their marginal benefits from defence satellites, a public good. If the marginal social cost of a satellite is $54, the efficient quantity of satellites is

Because of the free- rider problem,

-Tom and Jerry are the only members of society. The table above shows their marginal benefits from defence satellites, a public good. If the marginal social cost of a satellite is $95, the efficient quantity of satellites 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. If the government subsidises education, how much should the subsidy be in order to attain the efficient level of enrollment?