Exam 5: Public Spending and Public Choice

Which of the following statements is NOT true about the price system?

-Refer to the above figure.The market equilibrium quantity is .Point represents the optimal amount of production.The government can achieve the optimal outcome by

-In the above figure,the total dollar amount of the Medicare subsidies provided by the government is equal to

Government-sponsored goods are those goods

All of the following illustrate how government can correct for positive externalities EXCEPT

A government-inhibited good is a good which

What is the free-rider problem,and how is it related to public goods?

When state and local governments provide public schools with a per-unit subsidy to provide educational services,the price that the schools providing these services receive is

-According to the above figure,,then the supply curve will

Pollution is caused by a market failure,in an industry in which there is

Graphically,the presence of an external cost that is ignored by producers can be shown as

A government action that can help correct positive externalities is

The government might provide a subsidy when

If public subsidies for education were eliminated,what would you expect as an outcome in the market for educational services?

-Refer to the above figure.Medicare subsidies have increased the price of medical services to .Which of the following statements is true about the effect the Medicare subsidy has had on the consumption of medical services?

A tax is sometimes used by government to correct the problems associated with

A government-sponsored good is one that

To protect the competitive economic system by restricting the formation of monopolies,the government has passed and enforced

Many nations are consistently accused of enjoying the benefits of membership in the United Nations,yet they provide few or no funds to support the organization.This is an example of

When a business produces a product that creates external costs,