Foundations of economics 6th by parkin ch11 clicker questions

Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem © 2013 Pearson Public Goods and Common Resources 11 CLICKER QUESTIONS © 2013 Pearson Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem Checkpoint 11.1 Checkpoint 11.2 Checkpoint 11.3 Question Question 11 Question Question 44 Question Question 77 Question Question 22 Question Question 55 Question Question 88 Question Question 33 Question Question 66 Question Question 99 Question Question 10 10 © 2013 Pearson CHECKPOINT 11.1 Question A public good _ A can only be consumed by one person at a time B can be consumed simultaneously by many people C is any good provided by a company owned by a member of the public D is any good provided by government E is both rival and excludable © 2013 Pearson CHECKPOINT 11.1 Question Which of the following items best describes an externality? A something that is external to the economy B a tax on a good in addition to the market price C an effect of a transaction felt by someone other than the consumer or producer D anything produced in another country E a change from what is normal © 2013 Pearson CHECKPOINT 11.1 Question Which of the following is the best example of a mixed good with external costs? A national defense B a Ford Thunderbird C Yosemite national park D logging in the Amazon basin E Internet © 2013 Pearson CHECKPOINT 11.2 Question The marginal benefit of a public good is the _ A average of the marginal benefits of all the people in the economy at each quantity of the good B marginal benefit of the person who places the lowest value on the good, multiplied by the number of people in the economy C marginal benefit of the person who places the highest value on the good, multiplied by the number of people in the economy D benefit of the last person’s consumption E sum of the marginal benefits of all the people in the economy at each quantity © 2013 Pearson CHECKPOINT 11.2 Question The efficient quantity of a public good is A the quantity that private firms produce B the quantity at which the marginal benefit from the good equals the marginal cost of producing it C impossible to determine because each person’s marginal benefit is different D the quantity at which the marginal benefit exceeds the marginal cost by the largest possible amount E where the quantity demanded of the good equals the quantity supplied of the good © 2013 Pearson CHECKPOINT 11.2 Question Government bureaucracies overprovide public goods because of their goal of _ combined with the _ of the voters A budget maximization; irrational exuberance B budget minimization; irrational intelligence C budget maximization; minimum differentiation D budget maximization; rational ignorance E minimum differentiation; budget maximization © 2013 Pearson CHECKPOINT 11.3 Question The tragedy of the commons is the absence of incentives to _ A correctly measure the marginal cost of using the resource B prevent underutilization of the common resource C prevent overuse and depletion of the common resource D discover the resource E prevent the free-rider problem © 2013 Pearson CHECKPOINT 11.3 Question For a common resource, the marginal private benefit from a given quantity of the resource is _ A B C D E greater than the marginal social benefit equal to the marginal social benefit less than the marginal social benefit not related to the marginal social benefit not defined because the resource is nonexcludable © 2013 Pearson CHECKPOINT 11.3 Question Efficient use of a common resource requires that its A marginal private benefit equals marginal cost B marginal social benefit equals marginal cost C marginal private benefit equals marginal social benefit D marginal private cost equals marginal cost E marginal private benefit equals marginal social cost © 2013 Pearson CHECKPOINT 11.3 Question 10 If the government assigns private property rights to a common resource, then A the resource will be underutilized B the marginal social benefit becomes the marginal private benefit C the government must set a quota to achieve efficient use D the resource becomes a private good and cannot be used E a free-riding problem will emerge © 2013 Pearson ... only be consumed by one person at a time B can be consumed simultaneously by many people C is any good provided by a company owned by a member of the public D is any good provided by government... multiplied by the number of people in the economy C marginal benefit of the person who places the highest value on the good, multiplied by the number of people in the economy D benefit of the last... Question The marginal benefit of a public good is the _ A average of the marginal benefits of all the people in the economy at each quantity of the good B marginal benefit of the person who places