Chapter 15, Problem 1DQ

Public products should be on the vertical axis and private goods should be on the horizontal axis of a production potential curve. Explain how the output of public goods might be enhanced, assuming that the economy is initially running along the curve. In the event that the economy is originally running at a point inside the curve, how may the output of public goods be increased?

Define and give an example of a common resource.  Without government intervention, will people use this good too much or too little?  Explain.

Public goods:a. Please explain public goods.  b. Please explain their characteristics. c.  Please give 2 examples of public goods, including why those examples best fit your definition.

Explain what public goods are, and why public goods are provided by the government, using terms and details from the

A free rider is Group of answer choices A)Someone who consumes a public good but does not pay for it. B)Someone who only purchases resold goods or only uses items they can get for free. C)Someone who gives away items they have purchased. D)Someone who resells items they have purchased.

Which of the following statements about public goods is true?   Public goods are more important economically than private goods. It is difficult or impossible to exclude people from the consumption of a public good even if they do not pay. The incentive of private producers to supply public goods is weak. a.  I only   b.  III only   c.  II and III   d.  I, II, and III

The public smoking of cigarettes generates costs to society from second-hand smoke, therefore, cigarette production imposes costs on people who do not smoke.  Moreover, private consumption of cigarettes can start apartment building and wild fires that also impose costs on non-smokers.  Luckily, fire extinguishers can help prevent the spread of fires.   Suppose that the government can institute either a tax on cigarette producers, or a subsidy to cigarette producers, to bring the private production costs in line with social costs.  Identify where the socially optimal equilibrium would be.

What are the two essential characteristics of public goods? Choose the two characteristics that apply. A. Individuals pay for public goods as they are used. B. Some people receive greater opportunities to use public goods. C. Public goods can be used by more and more people at no additional opportunity cost and without depriving others of any of the goods or services. D. Collection systems are difficult to institute for public goods because of how people use them.

Distinguish between Public Goods and Private Goods. Give examples.