Question

Market failure questions Determining which public goods to provide requires governments to a. Issue licenses Salmon are potentially overfished because they are a common resource is rival in consumption a common resource that is underutilized. A public good. d. All of the above а. b. b. Minimize tax burdens с. c. Perform cost-benefit analyses d. Resolve all externalities. Voting rates are low in the U.S compared to other countries because a. It is not mandatory b. Marginal benefits are less than marginal costs for some people c. Both a and b d. Neither a nor b Heath insurance cannot be provided in a completely private individual market because a. Only the government can effectively provide health insurance b. Asymmetric information means that health insurance would become too expensive for most to purchase it c. Health care is a right and not a good or service d. All of the above. Because of the free-rider problem private markets tend to undersupply public goods the federal government spends too many resources or a. defense and not enough on medical research. c. Common resources are overused The Coase theorem argues that with no transaction costs, can be alleviated through private transactions? Deadweight loss Externalities Neither a nor b. Both a and b. а. b. b. с. d. Review: tax question Who bears the greatest tax burden? a. The government b. Buyers c. Sellers d. They all share the burden roughly equally Which best explains your answer in 8? a. Supply is greater than demand b. Supply is less than demand. c. Supply is inelastic compared with demand. d. Supply is elastic compared with demand. 60 Таx 55 The per-unit tax imposed on this market is a. $5 b. $10 c. $15 d. $20 20 30 Deadweight loss of the tax is: a. $20 b. $100 c. $300 d. $375 The buyer's burden of the tax per unit is а. $5 b. $10 c. $15 d. $20 The Laffer curve relates A Pigouvian (or corrective) tax or tradable permits might help resolve a. the tax rate to tax revenue raised by the tax. b. the tax rate to the deadweight loss of the tax c. the price elasticity of supply to the deadweight loss of the tax. Positive externalities a. b. Shortages c. Negative externalities d. government welfare payments to the birth rate d All of the above 40

Answer 1

Determining which public goods to provide requires government to

( d ) Resolve all Externalities

voting rates are low in usa compared to other countries because

( c ) Both a and b

salmon are potentially over fished because they are

( d) all of the above

Health insurance can not be provided in a completely private individual market because

( b ) asymmetric information means that health insurance would become too expensive for most to purchase it.