Exam 16: Public Choices, Public Goods, and Healthcare

John receives a marginal benefit of $80 from one missile. Nick receives a marginal benefit of $50 from one missile. Christina receives a marginal benefit of $65 from one missile. John, Nick, and Christina are the only people in the economy. What is the economy's marginal social benefit from one missile?

What does it mean for a good to be "nonexcludable"? Are private goods nonexcludable? Are public goods nonexcludable? Are common resources nonexcludable?

Michigan Radio is the state's most listened-to public radio service, attracting approximately 400,000 listeners each week and is funded through listener donations. If Michigan Radio suffers from the free-rider problem then the market would provide an ________ quantity of the public good.

Suppose that the marginal social benefit from another unit of a public good is less than the marginal social cost of producing it. Then

If the consumption of Good A by one person does not decrease the quantity of Good A available for another person's consumption, then the good is said to be

-The figure above illustrates the marginal benefit and marginal cost of different quantities of national defense. What is the political equilibrium if voters are well informed?

-The table above gives information on the marginal perceived private benefit and marginal social benefit associated with vaccination against varicella (chicken pox). If the marginal cost of a varicella vaccination is $10, then the efficient quantity of vaccinations is

The United States uses a single payer model of healthcare in which the government pays for all healthcare. Because a single payer model of health care creates no deadweight loss, most economists agree that the U.S. system of health care is efficient..

To find the economy's marginal benefit curve for a public good, you would

-If the government regulates the market in the above figure in a way to achieve efficiency, then ________ vaccinations will be produced and consumed.

Michigan Radio is the state's most listened-to public radio service, attracting approximately 400,000 listeners each week. The on-air fundraiser, which ran during October 2010, generated over 7400 pledges from donors. The money raised helps pay for programming costs at the station, with membership support being the single largest source of income. The 392,600 listeners who did not call and donate can be classified as what?

Some resources are private and others are common. Define a common resource, explain the definition, and provide an example of a private resource and a common resource.

Governments exist to

In 2010, the Center for Disease Control has recommended that every child between the ages of 6 months and 18 years be vaccinated, except those with a serious egg allergy. Dr. Berreman states,"By protecting ourselves from flu, we also protect our families and neighbors." Which is a solution that could be used to achieve a more efficient allocation of resources in the presence of this externality?

In an unregulated market, healthcare consumers often

A public good is ________ and ________.

A movie shown on a pay-per-view cable station is an example of

When consumption is rival and excludable, the product is a

The political market place requires all EXCEPT

Rational ignorance suggests that voters will