哈维财政学英文题库 CHA1(3)

9. A ________ is a person who wants to enjoy the benefits of a public good without contributing his or her marginal benefit to the cost of financing the amount made. A) free riderB) politicianC) price makerD) price optimizer Ans: a

10. Congestible public goods

A) are nonrival in consumption. B) can not be priced in the market.C) are rival in consumption. D) are never provided by the private sector.Ans: c 11. A private good is

A) nonrival in consumption.B) subject to free rider problems.

C) subject to exclusion.D) not subject to exclusion.E) none of the above. Ans: c

12. When those that do not contribute to the costs of a public good are denied use, this is a case of

A) exclusion.

B) being nonrival.C) price discrimination. D) infeasibility.E) all of the above.Ans: a 13. Which of the following is a public good? A) public defenseB) public television

C) a libraryD) schoolsE) all of the aboveAns: d 14. Pure private goods are supplied through A) the market.

B) government taxes.C) merit pricing.D) none of the above.Ans: a 15. School vouchers are

A) provided by the government.

B) provided by private organizations.C) public funds to be used for private tuition. D) all of the above. Ans: d

16. When asked to reveal their true preferences people A) always tell the truth.

B) never tell the truth.C) sometimes tell the truth.D) generally don’t know what preferences are. Ans: c

17. The MRT is

A) the marginal ring tone.B) the minimal rate of time.

C) the maximum rate of transformation.D) none of the above. Ans: d Essay

18. Suppose there are two individuals with identical demand curves characterized by the equation Q = (33/2) – (P/2). What is market demand if these demand curves are added horizontally? Vertically?

Ans: Horizontal adding yields Q = 33 –P. Vertical adding yields P = 66 –4Q.

19. Refer to Question 9 in your text. How does your answer change if the marginal cost of building each additional lighthouse increases to $150?

Ans: Part a) stays the same. Part b) now becomes 0 for the cost is too high for any number of lighthouses to be built.

20. Use the answer you found when adding market demand curves vertically in Question 1 above to find the market equilibrium quantity if the market supply is constant at 10. Ans: Q* = 14.

21. Suppose you are given the following demand curves: Q = 32 – P and Q = 16 – (P/2). Add these two demand curves vertically and find the market demand curve.

Ans: The demand curve has two portions. When Q is between 0 and 16, the demand curve is Q = (64/3) – (P/3). When Q is between 16 and 32, the demand curve is Q = 32 – P.

22. Suppose there is a public good that has market supply characterized by the equation X = (P/3) – (32/3). Suppose further that market demand for this good can be characterized by the equation X = 25 –P. Find the equilibrium quantity of the public good that will be supplied.

Ans: The two curves never intersect at a positive quantity; therefore, the amount of the public good provided will be zero.

23. The free rider problem causes less than optimal production of a public good. A) True.B) False.C) Uncertain.Ans: a

24. Pure private goods are nonrival in consumption. A) True.B) False.C) Uncertain.Ans: a

25. Most goods that are nonexcludable are pure public goods. A) True.B) False.C) Uncertain.Ans: c

26. Vertical summation of demand curves yield results equivalent to those of horizontal summation.

A) True.B) False.C) Uncertain.Ans: b

27. Increasing the quantity of a pure public good can be done at zero cost. A) True.B) False.C) Uncertain.Ans: b

28. Demand curves for pure public goods satisfy the law of demand. A) True.B) False.C) Uncertain.Ans: a

29. Pure public goods involve positive externalities. 30. A) True.B) False.C) Uncertain.Ans: a

30. Increases in spending on education will lead to an increase in student performance. A) True.B) False.C) Uncertain.Ans: c

31. Privatization means taking services that are supplied by the government and turning them over to the private sector for provision. A) True.B) False.C) Uncertain.Ans: a

32. Private goods are always provided by the private sector. A) True.B) False.C) Uncertain. Ans: b

33. The Global Positioning System (GPS) is an example of a good that is both non-rival and excludable good.

A) True.B) False.C) Uncertain.Ans: a

34. Choosing between public or private provision of a good always lead to market efficiencies. A) True.B) False.C) Uncertain.Ans: c Essay

35. You have read that the free rider problem affects equilibrium in a public good context. Explain how this situation can be modeled as a prisoner’s dilemma game.

Ans: Each individual will say before construction that he will tell the truth about his preferences. It would be in each person’s interest to lie about his true preferences, which would allow him to enjoy a higher level of public good without paying for it completely.

36. Discuss and contrast the advantages and disadvantages of public highways versus toll roads. Ans: There would be less uniformity in roads and no assurances about quality. Toll roads might exist in key areas if no one decides to build one or the costs are prohibitive.

37. Some economists believe that public schools would improve if they were subjected to competition. Discuss the pros and cons of this idea.

Ans: Competition would cause weaker schools to try harder to retain the students that they have. Competition could lead to teaching being concentrated at getting students’ test scores to rise without regard to subject matter.

Chapter 5 Externalities

Multiple-Choice

1. Reducing output from the privately optimal l …… 此处隐藏：5577字，全部文档内容请下载后查看。喜欢就下载吧 ……