Economics Chapter 17 Wendy And Peter Were The Only People

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80. Multiple Choice: For a nonexcludable good like nationa…

Question For a nonexcludable good like national defense, the private market will lead to:

Answer too much production of the good.

81. Multiple Choice: A public good is ________ and _______...

Question A public good is ________ and ________ in consumption.

Answer excludable; rival

82. Multiple Choice: A key element that a public good disp…

Question A key element that a public good displays is:

Answer overproduction.

83. Multiple Choice: Public goods are not sold in efficien…

Points: 0

Question Public goods are not sold in efficient quantities in the marketplace because:

84. Multiple Choice: Which of the following activities is ...

Question Which of the following activities is a public good?

Answer going to school

85. Multiple Choice: A public good is a good:

Question A public good is a good:

86. Multiple Choice: For a public good, nonpayers ________…

Question For a public good, nonpayers ________ excluded from obtaining the benefits of the

good.

Points: 0

87. Multiple Choice: The best example of a good whose cons...

Question The best example of a good whose consumption is not excludable is:

Answer a yard.

88. Multiple Choice: Which of the following is the best ex…

Question Which of the following is the best example of a good whose consumption is not

excludable?

Answer clothing

89. Multiple Choice: Which of the following is used to pro...

Question Which of the following is used to provide public goods?

Answer voluntary contributions

90. Multiple Choice: Volunteer fire departments are good e…

Question Volunteer fire departments are good examples of the ________ provision of

________.

Answer private; private goods

Points: 0

91. Multiple Choice: In the United Kingdom, most televisio...

Question In the United Kingdom, most television programming is paid for by a yearly license

fee assessed on every television owner. “Television detection vans” go through

neighborhoods to detect unlicensed households and keep them from viewing

without paying. This is a good example of the ________ provision of ________.

Answer public; private goods

92. Multiple Choice: Since the public safety that a police…

Question Since the public safety that a police force provides is ________ in consumption,

the efficient price ________.

Answer rival; is zero

93. Multiple Choice: For which of the following goods is t...

Question For which of the following goods is the marginal social benefit necessarily greater

than the marginal private benefit?

Points: 0

94. Multiple Choice: No individual is willing to pay to pr...

Question No individual is willing to pay to provide the efficient level of a public good, since

the:

95. Multiple Choice: Public goods should be produced up to...

Question Public goods should be produced up to the point at which the marginal cost of

production equals:

96. Multiple Choice: Suppose the small town of Falls Valle...

Question Suppose the small town of Falls Valley has a mosquito problem. After a bad

summer, the town accountants explain that the marginal cost of providing one more

treatment for mosquito control is $100,000. The town should provide the additional

mosquito control only if the marginal:

97. Multiple Choice: Figure: Traffic Lights in Plymouth Re…

Question

Points: 0

Figure: Traffic Lights in Plymouth

Reference: Ref 17-1

(Figure: Traffic Lights in Plymouth) Plymouth has 1,000 residents. The figure Traffic

Lights in Plymouth shows the marginal social benefit and marginal cost of traffic

lights in town. We know that each of the residents has the same individual

marginal benefit per traffic light. Without government intervention, the town will have

________ traffic lights.

98. Multiple Choice: Figure: Traffic Lights in Plymouth Re…

Question

Points: 0

Figure: Traffic Lights in Plymouth

Reference: Ref 17-1

(Figure: Traffic Lights in Plymouth) Plymouth has 1,000 residents. The figure Traffic

Lights in Plymouth shows the marginal social benefit and marginal cost of traffic

lights in town. We know that each of the residents has the same individual

marginal benefit per traffic light. If the government provides traffic lights, the socially

efficient quantity is:

99. Multiple Choice: Figure: Traffic Lights in Plymouth Re…

Question

Points: 0

Figure: Traffic Lights in Plymouth

Reference: Ref 17-1

(Figure: Traffic Lights in Plymouth) Plymouth has 1,000 residents. The figure Traffic

Lights in Plymouth shows the marginal social benefit and marginal cost of traffic

lights in town. We know that each resident has the same individual marginal benefit

per traffic light. If the town’s population doubles and the new residents share the

identical individual marginal benefit of the existing residents, the socially efficient

quantity of traffic lights will:

100. Multiple Choice: Reference: Ref 17-2 (Table: Street C…

Question

Points: 0

Reference: Ref 17-2

(Table: Street Cleanings) Peter and Wendy both benefit from having cleaner

streets. The table Street Cleanings shows the relationship between the number of

street cleanings per month and the total benefit they get. What is the marginal

social benefit for Peter and Wendy together when the number of street cleanings

per month increases from 4 to 5?

101. Multiple Choice: Reference: Ref 17-2 (Table: Street C…

Question

Reference: Ref 17-2

(Table: Street Cleanings) Peter and Wendy both benefit from having cleaner

streets. The table Street Cleanings shows the relationship between the number of

street cleanings per month and the total benefit they get. Increasing the number of

street cleanings per month from ________ would yield a marginal social benefit (for

Peter and Wendy together) equal to $12.

Points: 0

102. Multiple Choice: Reference: Ref 17-2 (Table: Street C…

Question

Reference: Ref 17-2

(Table: Street Cleanings) Peter and Wendy both benefit from having cleaner

streets. The table Street Cleanings shows the relationship between the number of

street cleanings per month and the total benefit they get. Suppose that the

marginal cost of street cleaning is $18 per cleaning. Then:

Answer if the city decided to clean the streets only once per month, Peter would be

willing to pay the entire cost of the cleaning.

103. Multiple Choice: Consider an economy with just two cit…

Question Consider an economy with just two citizens. If Sanjay‘s marginal benefit from

mosquito control is $10 and Anjuli‘s marginal benefit is $25, then the optimal level

of a public good like mosquito control occurs when the marginal cost of mosquito

control is:

Points: 0

104. Multiple Choice: Reference: Ref 17-3 (Table: Security…

Question

Reference: Ref 17-3

(Table: Security in a Residential Community) The table Security in a Residential

Community shows the total cost of hiring a 24-hour security service in a

community of 100 residents and each individual resident‘s total benefit from the

service. The marginal cost of hiring the second security guard is ________, and the

marginal social benefit is ________.

Answer $150; $200

105. Multiple Choice: Reference: Ref 17-3 (Table: Security…

Question

Reference: Ref 17-3

(Table: Security in a Residential Community) The table Security in a Residential

Community shows the total cost of hiring a 24-hour security service in a

community of 100 residents and each individual resident‘s total benefit from the

service. The marginal cost of hiring the third security guard is ________, and the

marginal social benefit is ________.

Points: 0

106. Multiple Choice: Reference: Ref 17-3 (Table: Security…

Question

Reference: Ref 17-3

(Table: Security in a Residential Community) The table Security in a Residential

Community shows the total cost of hiring a 24-hour security service in a

community of 100 residents and each individual resident‘s total benefit from the

service. The marginal cost of hiring the fourth security guard is ________, and the

marginal social benefit is ________.

107. Multiple Choice: Reference: Ref 17-3 (Table: Security…

Question

Points: 0

Reference: Ref 17-3

(Table: Security in a Residential Community) The table Security in a Residential

Community shows the total cost of hiring a 24-hour security service in a

community of 100 residents and each individual resident‘s total benefit from the

service. The efficient number of security guards is ________.

108. Multiple Choice: Reference: Ref 17-4 (Table: Total Co...

Question

Reference: Ref 17-4

(Table: Total Cost and Total Individual Benefit) The table Total Cost and Total

Individual Benefit refers to animal control for residents of a small town. If there are

1,000 residents, what is the total social benefit of three animal control officers?

Points: 0

109. Multiple Choice: Reference: Ref 17-4 (Table: Total Co...

Question

Reference: Ref 17-4

(Table: Total Cost and Total Individual Benefit) The table Total Cost and Total

Individual Benefit refers to animal control for residents of a small town. If there are

1,000 residents, what is the marginal social benefit of the fourth animal control

officer?

110. Multiple Choice: Reference: Ref 17-4 (Table: Total Co...

Question

Reference: Ref 17-4

(Table: Total Cost and Total Individual Benefit) The table Total Cost and Total

Individual Benefit refers to animal control for residents of a small town. If an

individual resident were to decide about hiring and paying for animal control officers

on his or her own, how many officers would that resident hire?

Points: 0

111. Multiple Choice: Reference: Ref 17-4 (Table: Total Co...

Question

Reference: Ref 17-4

(Table: Total Cost and Total Individual Benefit) The table Total Cost and Total

Individual Benefit refers to animal control for residents of a small town. If the

residents acted together, how many officers would they hire?

112. Multiple Choice: A characteristic of public goods is t...

Question A characteristic of public goods is that:

Answer people pay for them in proportion to the benefits received.

113. Multiple Choice: Some public goods would not be provid...

Question Some public goods would not be provided without government intervention because:

Answer the marginal cost of the good exceeds an individual’s marginal benefit.

Points: 0

114. Multiple Choice: Which of the following statements abo…

Question Which of the following statements about the provision of public goods is correct?

Answer They should be provided to the point at which the marginal cost of production

equals the maximum price any individual is willing to pay for that unit.

115. Multiple Choice: No individual is willing to pay for t...

Question No individual is willing to pay for the efficient quantity of a public good because the

marginal benefit to an individual ________ the marginal social benefit.

Answer equals

116. Multiple Choice: To maximize society‘s welfare, the go…

Question To maximize society‘s welfare, the government should produce a public good up to

the point at which the marginal social benefit ________ the marginal social cost.

Points: 0

117. Multiple Choice: Figure: An Individual’s Marginal Bene…

Question Figure: An Individual‘s Marginal Benefit from a Public Good

Reference: Ref 17-5

(Figure: An Individual’s Marginal Benefit from a Public Good) Look at the figure An

Individual’s Marginal Benefit from a Public Good. Assume that two individuals will

share consumption of a public good; each individual has the same marginal benefit

curve as the one shown in the figure. What is the marginal social benefit from four

units of the public good?

118. Multiple Choice: Figure: An Individual’s Marginal Bene…

Question

Points: 0

Figure: An Individual‘s Marginal Benefit from a Public Good

Reference: Ref 17-5

(Figure: An Individual’s Marginal Benefit from a Public Good) Look at the figure An

Individual’s Marginal Benefit from a Public Good. Assume that two individuals will

share consumption of a public good; each individual has the same marginal benefit

curve as the one shown in the figure. What is the total social benefit from four units

of the public good?

119. Multiple Choice: Figure: An Individual’s Marginal Bene…

Question

Points: 0

Figure: An Individual‘s Marginal Benefit from a Public Good

Reference: Ref 17-5

(Figure: An Individual’s Marginal Benefit from a Public Good) Look at the figure An

Individual’s Marginal Benefit from a Public Good. Assume that two individuals will

share consumption of a public good; each individual has the same marginal benefit

curve as the one shown in the figure. If the marginal cost of the good is $24, how

much of the public good will be provided by the private market?

120. Multiple Choice: Figure: An Individual’s Marginal Bene…

Question

Points: 0

Figure: An Individual‘s Marginal Benefit from a Public Good

Reference: Ref 17-5

(Figure: An Individual’s Marginal Benefit from a Public Good) Look at the figure An

Individual’s Marginal Benefit from a Public Good. Assume that two individuals will

share consumption of a public good; each individual has the same marginal benefit

curve as the one shown in the figure. If the marginal cost of the good is $24, what

is the level of this public good that would maximize society‘s welfare?

121. Multiple Choice: Figure: An Individual’s Marginal Bene…

Question

Points: 0