Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506756
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 5, Problem 11CQ
To determine
Explain the elementary education of public goods.
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Students have asked these similar questions
. What are the three problems facing a government trying to determine the optimal quantity of a public good? explain.
When people decide to buy cars, they have to decide between fuel economy and other features. It is argued that there is a "public good" issue involved in this decision. Why might that be? How the existence of public-good characteristics affect the price of the car? Include in your answer a good definition of a public good and free riders.
Which among the following is a characteristic of a public good?
Select one:
a. Free rider problem
b. Demand curve is the horizontal summation of the individual demand curves
c. None of the answers is correct
d. Rivalry
e. Excludability
Chapter 5 Solutions
Macroeconomics: Private and Public Choice (MindTap Course List)
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- (Optimal Provision of Public Goods) Using at least two individual consumers, show how the market demand curve is derived from individual demand curves (a) for a private good and (b) for a public good. Once you have derived the market demand curve in each case, introduce a market supply curve and then show the optimal level of production.arrow_forwardWhat is the free-rider problem? Why does the free-rider problem induce the government to provide public goods? How should the government decide whether to provide a public good?arrow_forwardTrue/False Provision of public goods is the same as public productionarrow_forward
- How do public television stations, like PBS, try to overcome the free rider problem? Is public television a public good in a non-obvious way?arrow_forwardWhich of the following is not true for a public good? a. Free-rider problem arises in case of public goods. b. Public goods include only material commodities. c. Marginal cost of serving public good to one more person is zero. d. Exclusion is not possible in most of the public goods.arrow_forwardWhat are Public Goods and Common resources? Describe in your analysis the issues that governments face as a result of these goodsarrow_forward
- Which of the following is NOT a feature of a public good? a. Non-excludability b. Non-rivalry c. Always provided by the free market d. Generally provided by the governmentarrow_forwardWhat is a market-failure rationale for the government investing in education and training programs? a. Education likelyresults in a negative externality in production, so government investment corrects for the under-provision by private, unregulated markets. b. Education likely results in a positive externality in consumption, so government investment corrects for the under-provision by private, unregulated markets. c. Education likely results in a positive externality in production, so government investment corrects for the over-provision by private, unregulated markets. d. Education likely results in a negative externality in consumption, so government investment corrects for the over-provision by private, unregulated markets.arrow_forwardAssuming the government pays higher cost of production by paying wages that are higher than the private sector rates, analyse the effect of the change in the costs of producing public good caused by government inefficiency?arrow_forward
- What is a public good? What are its two defining characteristics? Provide an example.arrow_forwardWhich of the following statements is false regarding a public good? Multiple Choice The marginal cost of a public good is zero. A scholarship is an example of a public good. A public good is non-rival. A public good is non-excludable.arrow_forwardAs it relates to a public good, nonrivalry means that: the public sector is able to provide the good profitably. there is no need or demand for the good. either the public sector or the public sector can produce the good, but not both. one person's benefit from the good does not reduce the benefit available to others.arrow_forward
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