Question 1

The following is an example of a pure public good:

Accepted Answer

A) Yellowstone National Park 
B) Clean Air 
C) National Defense 
D) Public Education 
A) Yellowstone National Park 
B) Clean Air 
C) National Defense 
D) Public Education

Question 2

What is the total community demand equation for the fireworks display?

Accepted Answer

The vertical summati

Question 3

A negative income tax works by

Accepted Answer

A) Taxing people until they have a negative income 
B) Giving people below a certain income level a lump sum and then taxing further income 
C) Giving money to everyone in the U.S 
D) Not taxing people who make negative income 
A) Taxing people until they have a negative income 
B) Giving people below a certain income level a lump sum and then taxing further income 
C) Giving money to everyone in the U.S 
D) Not taxing people who make negative income

Question 4

If the city father (Elmer), true statesman that he is, tried to work toward efficiency by structuring a user benefit tax on the July 4 display, and if he were able to assess accurately the benefits received, how would he tax the citizens?

Accepted Answer

By plugging the optimal output, 11, into

Question 5

In the example above, what is John's incentive per week to work a normal 40 hour week and get off of welfare?

Accepted Answer

A) $160 
B) $120 
C) $40 
D) $0 
A) $160 
B) $120 
C) $40 
D) $0

Question 6

According to the text one of the ways to solve the public good problem is:

Accepted Answer

A) To allow private firms in free markets to provide the good for a fee 
B) For the government to provide the good for free by using a compulsory tax 
C) Not to provide the good at all 
D) Finding ways of forcing people to pay for the good 
A) To allow private firms in free markets to provide the good for a fee 
B) For the government to provide the good for free by using a compulsory tax 
C) Not to provide the good at all 
D) Finding ways of forcing people to pay for the good

Question 7

The optimal output of a public good occurs where

Accepted Answer

A) The total cost of the good equals the cumulated benefits of all consumers 
B) The sum of the marginal benefit of each consumer at a given output equals the marginal cost of the good 
C) The marginal benefit of the consumer who values the good most should equal the marginal cost of the good 
D) The horizontal sum of the consumer benefits of the good should equal the marginal cost of producing the good 
A) The total cost of the good equals the cumulated benefits of all consumers 
B) The sum of the marginal benefit of each consumer at a given output equals the marginal cost of the good 
C) The marginal benefit of the consumer who values the good most should equal the marginal cost of the good 
D) The horizontal sum of the consumer benefits of the good should equal the marginal cost of producing the good

Question 8

Attempts to lobby the government for private gain are referred to by the text as

Accepted Answer

A) Corruption 
B) Graft 
C) Rent-seeking 
D) Collective agreements 
A) Corruption 
B) Graft 
C) Rent-seeking 
D) Collective agreements

Question 9

According to the negative income tax, the breakeven income level for a program whose tax credit is $3,000 and whose tax rate is 30 percent would be:

Accepted Answer

A) $10,000 
B) $6,000 
C) $4,500 
D) $9,000 
A) $10,000 
B) $6,000 
C) $4,500 
D) $9,000

Question 10

One way to verify that 11 is the socially optimal outcome in Flagston is to compare the consumer surplus gained by an output of 11 with the consumer surplus received when the majority voting equal pay outcome of 10 is bought.How much consumer surplus is gained by the 11th firecracker?

Accepted Answer

The consumer surplus with 10 units of fi

Question 11

The market demand curve for a public good is found by

Accepted Answer

A) Horizontally summing the individual demand curves 
B) Vertically summing the individual demand curves 
C) Horizontally summing the firm's demand curves 
D) Vertically summing the firm's demand curves 
A) Horizontally summing the individual demand curves 
B) Vertically summing the individual demand curves 
C) Horizontally summing the firm's demand curves 
D) Vertically summing the firm's demand curves

Question 12

The best example of a public good is

Accepted Answer

A) Education 
B) National defense 
C) Welfare 
D) Automobiles 
A) Education 
B) National defense 
C) Welfare 
D) Automobiles

Question 13

According to the text, one of the disadvantages of our current welfare system is that

Accepted Answer

A) It provides incentives for the poor not to work 
B) It gives the poor too much money 
C) It works in the opposite direction of Rawl's view of justice 
D) It is biased in favor of rich people 
A) It provides incentives for the poor not to work 
B) It gives the poor too much money 
C) It works in the opposite direction of Rawl's view of justice 
D) It is biased in favor of rich people

Question 14

According to Rawls, individuals placed behind a veil of ignorance would

Accepted Answer

A) Choose a more egalitarian society 
B) Choose a less egalitarian society 
C) Move from a democracy to an authoritarian form of government 
D) Move from an authoritarian to a democratic form of government 
A) Choose a more egalitarian society 
B) Choose a less egalitarian society 
C) Move from a democracy to an authoritarian form of government 
D) Move from an authoritarian to a democratic form of government

Question 15

Which is not a good method of providing public type goods by private means?

Accepted Answer

A) Funding by donation 
B) Private contracts 
C) Clubs 
D) Free markets with competing entrepreneurs 
A) Funding by donation 
B) Private contracts 
C) Clubs 
D) Free markets with competing entrepreneurs

Question 16

If the total costs of providing the public good are $20, then

Accepted Answer

A) both Jill and John would be willing to vote to approve of providing the good. 
B) only Jill would be willing to vote to approve of providing the good. 
C) only John would be willing to vote to approve of providing the good. 
D) neither Jill nor John would be willing to vote to approve of providing the good. 
A) both Jill and John would be willing to vote to approve of providing the good. 
B) only Jill would be willing to vote to approve of providing the good. 
C) only John would be willing to vote to approve of providing the good. 
D) neither Jill nor John would be willing to vote to approve of providing the good.

Question 17

Congress has not been able to vote with clarity on a war in country X.It seems like there are three options that they consider.(1) They could negotiate the best agreement they can get and leave the area.(2) They could continue the air campaign.(3) They could continue the air campaign and send ground troops into the area.In terms of expense the options get increasingly expensive.If a representative from Illinois has a preference order of (1), (3), (2), we can say that:

Accepted Answer

A) The median voter rule will not apply 
B) The representative has a single peaked voting preference 
C) The representative has a double peaked voting preference 
D) It can not be answered with the information given 
A) The median voter rule will not apply 
B) The representative has a single peaked voting preference 
C) The representative has a double peaked voting preference 
D) It can not be answered with the information given

Question 18

Charles Tiebout favors

Accepted Answer

A) Government provision of all public goods 
B) User taxes on public goods 
C) People moving to local communities with others of similar tastes 
D) People of different tastes living in the same place 
A) Government provision of all public goods 
B) User taxes on public goods 
C) People moving to local communities with others of similar tastes 
D) People of different tastes living in the same place

Question 19

When the optimal quantity of this good is provided the Jill's willingness to pay for the good is:

Accepted Answer

A) 4 
B) 12 
C) 48 
D) 2 
A) 4 
B) 12 
C) 48 
D) 2

The following is an example of a pure public good:

What is the total community demand equation for the fireworks display?

A negative income tax works by

If the city father (Elmer), true statesman that he is, tried to work toward efficiency by structuring a user benefit tax on the July 4 display, and if he were able to assess accurately the benefits received, how would he tax the citizens?

In the example above, what is John's incentive per week to work a normal 40 hour week and get off of welfare?

According to the text one of the ways to solve the public good problem is:

The optimal output of a public good occurs where

Attempts to lobby the government for private gain are referred to by the text as

According to the negative income tax, the breakeven income level for a program whose tax credit is $3,000 and whose tax rate is 30 percent would be:

One way to verify that 11 is the socially optimal outcome in Flagston is to compare the consumer surplus gained by an output of 11 with the consumer surplus received when the majority voting equal pay outcome of 10 is bought.How much consumer surplus is gained by the 11th firecracker?

The market demand curve for a public good is found by

The best example of a public good is

According to the text, one of the disadvantages of our current welfare system is that

According to Rawls, individuals placed behind a veil of ignorance would

Which is not a good method of providing public type goods by private means?

If the total costs of providing the public good are $20, then

Charles Tiebout favors

When the optimal quantity of this good is provided the Jill's willingness to pay for the good is:

Thinking Like an Economist

Supply and Demand

Rational Consumer Choice

Individual and Market Demand

Applications of Rational Choice and Demand Theories

The Economics of Information and Choice Under Uncertainty

Explaining Tastes: The Importance of Altruism and

Cognitive Limitations and Consumer Behavior

Production

Costs

Perfect Competition

Monopoly

Imperfect Competition: a Game-Theoretic Approach

Labor

Capital

Externalities Property Rights and the Coase Theorem

General Equilibrium and Market Efficiency

Filters

Exam 17: Explaining Tastes: The Importance of Altruism and

The following is an example of a pure public good:

What is the total community demand equation for the fireworks display?

A negative income tax works by

If the city father (Elmer), true statesman that he is, tried to work toward efficiency by structuring a user benefit tax on the July 4 display, and if he were able to assess accurately the benefits received, how would he tax the citizens?

In the example above, what is John's incentive per week to work a normal 40 hour week and get off of welfare?

According to the text one of the ways to solve the public good problem is:

The optimal output of a public good occurs where

Attempts to lobby the government for private gain are referred to by the text as

According to the negative income tax, the breakeven income level for a program whose tax credit is $3,000 and whose tax rate is 30 percent would be:

One way to verify that 11 is the socially optimal outcome in Flagston is to compare the consumer surplus gained by an output of 11 with the consumer surplus received when the majority voting equal pay outcome of 10 is bought.How much consumer surplus is gained by the 11th firecracker?

The market demand curve for a public good is found by

The best example of a public good is

According to the text, one of the disadvantages of our current welfare system is that

According to Rawls, individuals placed behind a veil of ignorance would

Which is not a good method of providing public type goods by private means?

If the total costs of providing the public good are $20, then

Charles Tiebout favors

When the optimal quantity of this good is provided the Jill's willingness to pay for the good is:

Thinking Like an Economist

Supply and Demand

Rational Consumer Choice

Individual and Market Demand

Applications of Rational Choice and Demand Theories

The Economics of Information and Choice Under Uncertainty

Explaining Tastes: The Importance of Altruism and

Cognitive Limitations and Consumer Behavior

Production

Costs

Perfect Competition

Monopoly

Imperfect Competition: a Game-Theoretic Approach

Labor

Capital

Externalities Property Rights and the Coase Theorem

General Equilibrium and Market Efficiency

Filters