Flag question: Question 6

Question 67.35pts

In the United States, production by federal, state, and localgovernment

Group of answer choices

is banned under the Constitution (except for printing money).

exceeds the levels in Western Europe through U.S. nationalization of private enterprises.

never competes directly with private firms.

can include electricity, education, and garbage collection.

Flag question: Question 7

Question 77.35pts

The number of local governmental entities in the United States is roughly

Group of answer choices

850

8500

85,000

850,000

Flag question: Question 8

Question 87.35pts

The marginal rate of substitution is the slopeof

Group of answer choices

a budget line

utility possibilities curve

an indifference curve

a production possibilities curve

Flag question: Question 9

Question 97.35pts

The Constitution forbids the federal government from levying

Group of answer choices

import taxes

export taxes

capitation taxes

uniform taxes

Flag question: Question 10

Question 107.35pts

The first fundamental theorem of welfare economicsstates:

Group of answer choices

Pareto improvements lead to increased competition.

Competitive markets lead to a Pareto efficient allocation.

No one can be made better off without someone is being made worse off.

Competitive markets lead to externalities and information problems.

Flag question: Question 11

Question 117.35pts

Which isnotnecessarily true of a public good?

Group of answer choices

It costs nothing to let an additional person consume it.

It costs a lot to keep an additional person from consuming it.

It can be found in both the private and public sectors.

It can be a negative thing, that is, a "public bad."

Flag question: Question 12

Question 127.35pts

Charging a toll on a crowded bridgecan

Group of answer choices

help to correct a negative externality

be a positive externality, because people do not wait so long once there is a toll.

interfere with competitive efficiency.

be a public good, since my paying the toll does not keep you from paying the toll as well.

Flag question: Question 13

Question 137.35pts

The market failure referred to as incomplete markets is the failureof

Group of answer choices

all people to demand all goods.

some goods to be demanded because their competitive prices are too high.

some goods to be provided because their prices are too low.

some goods to be provided even though benefits would exceed costs.

Flag question: Question 14

Question 147.35pts

Examples of government intervention to correct the imperfect information market failure donotinclude

Group of answer choices

requiring disclosure of information about food labeling.

providing information about weather.

revealing demand curves in competitive markets.

financing research and development.

Flag question: Question 15

Question 157.35pts

The welfare loss from monopoly can be seen from the difference in equilibrium between

Group of answer choices

marginal revenue and marginal benefit.

marginal revenue and marginal cost.

marginal cost and marginal benefit.

supply and demand.

Flag question: Question 16

Question 167.35pts

The free rider problem refers to people who

Group of answer choices

will only consume a public good if it is free.

for efficiency's sake, should be allowed to consume public goods (such as mass transit) even if they do not pay.

will not voluntarily pay for a public good even though they would benefit from its provision.

are not willing to pay for a public good because they lack information about its potential benefits.