Question1

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

a.marginal revenue and marginal benefit.

b. marginal cost and marginal benefit.

c.supply and demand.

Question 2

Which of the following is not a reasonable argument for government involvement in education?

a.Education has some public good aspects, especially in a democracy.

b.Education is a merit good.

c. Education is more efficiently produced by government.

d.Public provision of education has desirable distributional consequences.

Question 3

A mixed economy is one in which

both labor and capital contribute significantly to production

both industrial and service sectors are important

a centralized government controls economic activity and produces some military goods and some consumer goods.

both government and private firms play important economic roles.

Question 4

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

a.850

b.8500

c.850,000

d.85,00

Question 5

Which of the following questions is much more important in public economics than in other areas of economics?

a.What should be produced?

b.How should decisions be made?

c.How should goods be produced?

d.To whom are goods distributed?