STAYER ECO 450 Week 4 Quiz 3 Ch 4 and 5

STAYER ECO 450 Week 4 Quiz 3 Ch 4 and 5

STAYER ECO 450 Week 4 Quiz 3 Ch 4 and 5

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1.   Bread is an example of a good that is nonrival in consumption.
2.   A pure public good is one for which it is easy to exclude consumers from benefits if they refuse to pay.
3.   The marginal social cost of producing another unit of a pure public good will always be positive.
4.   To obtain a demand curve for a pure public good, the marginal benefit of each consumer must be summed for each possible quantity produced per time period.
5.   If the efficient amount of a pure public good is produced, each person consumes it up to the point at which his or her marginal benefit equals the marginal social cost of the good.
6.   In a Lindahl equilibrium, each consumer of a pure public good consumes the same quantity and pays a tax share per unit of the good equal to his or her marginal benefit.
7.   If the marginal social cost of a pure public good exceeds its marginal social benefit, additional units of the good can still be financed by voluntary contributions.
8.   The free-rider problem is less acute in small groups than it is in large groups.
9.   A congestible public good is one for which the marginal cost of allowing an additional consumer to enjoy the benefits of a given quantity is always zero.
10.   Television programming is a good example of a price-excludable public good.
11.   It is possible to price a pure public good and sell it by the unit.
12.   The demand curve for a pure public good is obtained by adding the quantities demanded by each individual consumer at each possible price.
13.   A Lindahl equilibrium usually has each participant paying the same tax share per unit of a public good even though their marginal benefit of that unit varies.
14.   Internet service is an example of a price-excludable public good.
15.   Clubs...

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