Question

True or False

1. Public goods are provided by the government or not at all. The second largest source of tax revenue for the federal government is social insurance taxes (Social Security and Medicare taxes). Other things equal, an economy's marginal willingness to pay for a non-rival good is likely to be higher the larger the population. Spending on the social security program is not included in the unified budget because it is “off-budget." Market failure cannot occur if non-rival goods are excludable and producers can charge for them. As a percentage of GDP, spending on national defense has mainly declined since 1950. The total willingness to pay for a certain quantity of a good can be greater than the amount people actually spend. Whereas cost externalities cause inefficiency, benefit externalities are good for the economy and improve economic efficiency. 9. Language has a network externality. 10. Smoking imposes externalities on non-smokers, but non-smokers can also impose externalities on smokers.

Answer 1

1. False-

Explanation:

Public goods are non excludable and non rivalrous but can be provided by private sector also . For example- Roads.

2.False-

Explanation:

the federal government's second largest source of revenue is payroll tax not social insurance tax.

3.False-

Explanation:

The good is non rival good it means it is consumed by one person without reducing the amount left for others and hence willingness to pay will not be higher.

4.False-

Explanation:

Spending on social security is included in unified budget as it comprises one of largest expenditure head for any government .

**First four question is answered completely, please post other question separately**