Exam 4: Public Spending and Public Choice

A shift from S₁ to S₂ reflects the change that happens when a negative externality is taken into account.A shift from D₁ to D₂ reflects the change that happens when a positive externality is taken into account. -Refer to the above figures.A negative externality exists that has not been corrected.Price and quantity will be

One characteristic of a public good is that it

Graphically,the effect of a government subsidy on a good is shown as

Receiving a voucher for an apartment in a public housing project would be an example of a good that satisfies

Compared with the market clearing price of a health care service covered by Medicare,the Medicare program pays a ________ price to health care providers and charges a ________ price to consumers.

When a person throws a cigarette out of a car window and starts a brush fire,this is

The non-exclusion principle means

Recipients of Medicare tend to demand a greater quantity of low-value,high-cost services because

Market failures

The Employment Act of 1946 reflects which one of the following functions of government?

When the price system fails to generate an efficient allocation of resources,

Costs that spill over to third parties are called

Government-sponsored goods are those goods

Which of the following would be best classified as a private good?

How does a government-sponsored good differ from a public good?

A difference between the market and the public sector is that

"Second-hand" smoke,an often cited disadvantage of allowing smoking in restaurants,is referred to in economics as a(n)

According to your text,which of the following represents the largest component of federal spending?

The opportunity cost of providing a public good to an additional individual is

An effluent fee is an example of