Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Question
Chapter 16.2, Problem 4RQ
To determine
The public choices leading to the over provision of the public good.
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Check out a sample textbook solutionStudents have asked these similar questions
Which 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.
List 5 distinct examples of public goods.
i)A public good
a )costs essentially nothing to produce and is thus provided by the government at a zero price. b)can never be provided by a nongovernmental organization. c) can't be provided to one person without making it available to others as well.
d)generally results in substantial negative externalities.
ii)The market demand curve for a public good
a) shows the total value that all individuals place on each additional unit of the good.
b) is derived in the same manner as demand curves for private goods.
c)is derived by horizontally summing all individual demand curves.
d)shows the total number of units that would be produced by the public sector at each possible price.
iii)The market demand curve for a public good
a) shows the total value that all individuals place on each additional unit of the good.
b)is derived in the same manner as demand curves for private goods.
c) is derived by horizontally summing all individual demand curves.
d)shows the total number of units…
Chapter 16 Solutions
Macroeconomics
Ch. 16.1 - Prob. 1RQCh. 16.1 - Prob. 2RQCh. 16.1 - Prob. 3RQCh. 16.1 - Prob. 4RQCh. 16.2 - Prob. 1RQCh. 16.2 - Prob. 2RQCh. 16.2 - Prob. 3RQCh. 16.2 - Prob. 4RQCh. 16.3 - Prob. 1RQCh. 16.3 - Prob. 2RQ
Ch. 16.3 - Prob. 3RQCh. 16.3 - Prob. 4RQCh. 16.3 - Prob. 5RQCh. 16 - Prob. 1SPACh. 16 - Prob. 2SPACh. 16 - Prob. 3SPACh. 16 - Prob. 4SPACh. 16 - Prob. 5SPACh. 16 - Prob. 6SPACh. 16 - Prob. 7SPACh. 16 - Prob. 8SPACh. 16 - Prob. 9SPACh. 16 - The Economics of Healthcare (Study plan 16.3) Use...Ch. 16 - Prob. 11APACh. 16 - Prob. 12APACh. 16 - Prob. 13APACh. 16 - Prob. 14APACh. 16 - Prob. 15APACh. 16 - Prob. 16APACh. 16 - Prob. 17APACh. 16 - Prob. 18APACh. 16 - Prob. 19APACh. 16 - Prob. 20APACh. 16 - Prob. 21APACh. 16 - Prob. 22APACh. 16 - Prob. 23APACh. 16 - Prob. 24APA
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Similar questions
- (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 are “public goods”? Pick a government good/service that you consume, define what makes it a public good (how is its non-rival and non-excludable). As we discussed in class, the existence of externalities creates an efficiency problem in the provision of these goods and services. Unlike the private sector, State and Local Governments can intervene. Using the example of the public good, you have provided, please provide an example of an externality that will impact its provision, and detail how a government could/should intervene.arrow_forwardWhat are the two characteristics of public goods? What is the free-rider problem as it related to public goods? Is U.S. border patrol a public good or a private good? Explain.arrow_forward
- Which of the following goods could best be classified as a public good? a) A hard copy of Principles of Microeconomics by N Gregory Mankiw b) A PDF copy of Principles of Microeconomics in a public Dropbox folder c) An electrical grid d) The water in the Great Lakesarrow_forwardExplain the concept of externalities; include an example, as well as how the government takes action to correct it.arrow_forwardWhich of the following best matches the definition of a public good? The public libray Ice cream City Park Cambus ridesarrow_forward
- Explain the measures used by the government to correct each of the following sources of market failure: (i) demerit goods (ii) Negative externalityarrow_forwardOffer an example of a good that has become a public (or quasi-public) good due to technology. Explain how technology has made this good non-rival in consumption or non-excludable. Is there a free rider problem with the good you mentioned? How can the free rider problem be addressed in this example?arrow_forwardDescribe a positive or negative externality that you have observed in your life. In the example you provide, determine if the externality is positive or negative, explain why, and discuss if you feel like government intervention is present and/or needed. If so, how does (or how could?) the government increase market efficiency?arrow_forward
- a) Identify two public goods and explain why they are public goods b) Why does a positive externality create a market failure and how can this market failure be solved by the government? Fully explain your answer.arrow_forwardMarket failure occurs when the private sector fails to distribute our resources efficiently through the pricing system. Externalities and a lack of public goods and services are two examples of market failure.Give an example of a positive and a negative externalities that someone faces in their life. Also, what are some public goods and services that you utilize in your everyday life?arrow_forwardPublic goods are often thought to be goods or services that are provided by the government, but that is confusing cause and effect. What are the characteristics of a public good? Hint: Who provides the public good is not one of the characteristics.arrow_forward
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